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Comcast Stock Valuation

In: Business and Management

Submitted By ivelisseleal
Words 492
Pages 2
Topic Two
Time Value of Money, Bond and Stock Valuation

Ivelisse Rodriguez

Investing in the stock market is one of the most profitable and riskiest kinds of investments. However, a convectional investor aspires at gaining money on the market but what it the most important key for investor succeed in the stock investing? The answer is simple, it is knowledge in investing. Usually losses in investing happen because of lack of knowledge, over confidence, impatience, greed, far, and different delusions. An experienced investor knows that there is a direct proportion between time spent to increase investing skills and return on investment.
Looking for an industry or company on where investor should invest, I found cable industry and Comcast Corp. is the nation’s leading cable TV provider, with 22.3 million video subscribers in 39 states and the District of Columbia. Internet service has 18.1 million subs; phone service, 9.3 million. Also has 51%-stake in NBC Universal joint venture, which includes major broadcast and cable networks (NBC,Bravo, USA), film studios (Universal Pictures), digital media, and resort parks. ( Value line report states that Comcast has Timeliness 1 which representing the highest score achievable and a positive returns in the future. The ranking of Safety and Technical are considerate in a comfort zone, following for a Beta under 1.

The Comcast Analysis value line report instates the revenue and share earnings have robust advance of roughly 23% to 25% respectively. Moreover, XFINITY product is gaining its attraction among the consumers and with many additional value added services should open more doors of opportunities within the cable division in the coming year. Knowing more about company stock and what the position in the actual market is; actual price for Comcast share is 34.27 with a projection of 5 years will be 48 and 64 per share, which means a potential return of the investment 12% to 22% in 5 years. Moreover, Value line reports a earning per share of 32.8 and revenue per share of 3.10. Cash flow growth a 10% and compounded sales growth an 11% with 5 years forecast of a 13% and 12.5% respectively.
While cable has struggled to gain TV subscribers, the industry has been dominant in picking up Internet customers. Comcast and Time Warner Cable have netted a combined 3.27 million broadband subscribers over the past eight quarters. (Alex Sherman, 2012). The tendency of Comcast toward to the growth However, Stocks of growing companies with great potential for gaining footing in the market have a higher degree of risk, but a potential for some incredible profits as well. In order to reap the benefits of such ventures however, you must be willing and able to take the risk that comes with it.

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