Comcast (CMCSA) is the best value on the market today.

I’ve been doing a deep dive into Comcast Corp stock the past few weeks, and my conclusion is the title of this post. Here’s the basic rundown of Comcast’s portfolio of businesses: Connectivity: Residential Broadband Business Connectivity Cable Wireless NBCU: Universal Studios (Jurassic Park, Oppenheimer, Minions) NBC (SNL, The Office, etc) Universal Theme Parks Peacock Their stock trades at a 5-6x multiple to FCF, which obviously begs the question: why? The answer is that the market sees threats to Comcast’s biggest cash cow, which is their residential broadband service. The threats are fiber and 5G. You can’t ignore these threats, but any critical thinking will lead you to understanding it’s overblown. 5G cannot provide the smoothness and capacity which broadband provides. And Fiber is way more expensive for companies (AT&T etc) to install which results in a higher required price to charge customers to compensate the investment made. Speeds and smoothness are better with Fiber compared to broadband, but Comcast is and has been investing upgrading the cable wires with fiber co-axial to match those speeds and tech. Comcast has done a nice job slowing the bleeding in their broadband subscriber base in Q1 2026. They managed to reduce their net losses to 65k subscribers vs 183k lost in Q1 2025. They’ve done this by going harder on packaging their products, offering bundles for WiFi + wireless. They’ve actually been doing great at growing their wireless lines, growing 19.5% YoY to 9.7m lines. The business connectivity is super strong, mainly due to its already deep integration into America’s businesses, revenue up 5.8% YoY. People like to mention the threat of Starlink, and that’s just an uninformed fear. Elon Musk himself has said Starlink will never be a replacement for broadband. This is because it runs on airwaves, which is limited in how much total activity it can carry. Starlink is meant for rural areas which don’t have broadband. Besides, the cost to send satellites and the short 5-7 year lifespan of them, won’t ever compete with existing broadband infrastructure. An important thing to note is that when comparing 2026 financials to previous years, you must adjust for the spinoff of Versant. Versant was spun-off at the end of 2025, taking with it the cable stations like CNBC, Bravo and the Golf Channel. For FY25, this accounted for \~$0.50 in EPS. Peacock has been killing it lately, now up to 46m subscribers. They’ve become a must for sports fans, carrying the NBA, NFL and the Olympics. They’ve been a cash drag on Comcast, but they are no on track for their first profitable quarter in 2026. That’s huge. Their Theme Parks and Studios are machines, pumping out $4-5B in cash flow annually. Their IP library is top-shelf: The Office Jurassic Park Minions Fast & Furious SNL Shrek Mario Galaxy M3GAN And more.. FCF was $19B last year. For 2026 the estimate is $15-16B, which drop is mainly due to a one-off $2B tax credit in 2025 and due to the Versant spinoff. The current market cap is $90B, so about 5.8x FCF, or a 17.2% FCF yield. They do carry a lot of long term debt, which is another easy headline reason for the stock price, but when examined it’s not bad at all. They now have $87B in long term debt, with about $5B due annually through 2031 for payment or refinance. This healthy debt wall schedule is very important when considering the high rate environment we’re in. The average weighted term of this $87B is 16.2 years at 4.6% interest. Thats elite. As the government debases the dollar in order to survive their debt situation, this debt held by Comcast will get more and more in-sequential. Most importantly their annual debt service is covered about 10x over by their EBIDTA. Compare that to Charter’s 3x ratio. The debt here is not a problem. What’s most important is what management does will all of this cash flow. Here’s what they’ve been doing: $5B Dividends $5-8B Buybacks $2B Debt Retirement In reality debt retirement is equity shareholder return, but let’s not go there for arguments sake. What’s most important is shareholder returns is dividends and buybacks. Combined 11-14%. With valuation multiples as low as they’ve been, these buybacks are crazy effective. They’re on pace to retire 5-6% of shares outstanding annually. That means even if organic business growth is flat, EPS will grow 5-6% annually. If you start from $16B FCF and 3.58B shares outstanding, run the numbers on how much FCF/share grows in 5 years with 5.5% buyback rate and flat FCF growth. If we reverse engineer Benjamin Grahams valuation formula, the 5.8x multiple tells us that the ten year growth expectation is about -1.35%. If you combine this with the share reduction rate of 5.5%, that’s an implied total FCF decline rate of 6.85%, which would halve FCF over ten years. If you compare just NBCU to the recent WBD acquisition, you’ll see it in itself is worth $100B plus. If you run through all of this, you should be able to see the downside is incredibly low. Their dividend is super safe in terms of FCF to cover it. Which means the dividend will not be cut anytime soon. At a current 5.35% yield, any higher and you start getting dividend hunters bidding the stock price back up. If you model 0% organic growth over ten years, with 5.5% in per share metrics via buybacks, you get a fair value of $87/share. Today’s price is \~$25. While you wait for the “weighing machine” to do its work, you get paid a nice 5.35% dividend. I invite any pushback here. I’d honestly like to know what I might be missing.