Company DCF analysis file
Comcast DCF Analysis
A Comcast DCF needs separate connectivity and entertainment investment cases, followed by a bridge to the post-Versant perimeter. FY2025 operating profit fell while consolidated net income rose, reflecting different nonoperating effects. Physical capex alone is also an incomplete investment deduction.
Revenue, expenses and profit on one annual basis
Historical Comcast consolidated comparison, $ millions: FY2024 ended 2024-12-31 and FY2025 ended 2025-12-31. These annual periods are separate from the later interim observation below.
| Measure | FY2024 | FY2025 |
|---|---|---|
| Revenue | 123,731 | 123,707 |
| Programming and production expense | 37,026 | 34,951 |
| Marketing and promotion | 8,073 | 8,862 |
| Other operating and administrative | 40,533 | 43,013 |
| Depreciation | 8,729 | 9,327 |
| Amortization | 6,072 | 6,884 |
| Operating income | 23,297 | 20,672 |
| Investment and other income/(loss), net | -490 | 9,503 |
| Consolidated net income | 15,877 | 19,660 |
Source: Annual financial statements. Annual values are reported unless a row is marked derived.
The net-income increase does not describe the operating-profit trend. The filing identifies the Hulu investment sale within the nonoperating comparison. Programming expense also includes recognition of earlier content investment; it is not necessarily the current-period payment to produce or license the same content. The rounded expense rows sum to $103,037 million, versus reported total costs of $103,035 million. Use the reported total to reconcile operating income; do not plug the $2 million rounding difference into a fabricated expense.
Content expense has several funding and recognition paths
| Reported expense, $ millions | FY2024 | FY2025 |
|---|---|---|
| Video distribution programming | 11,428 | 10,008 |
| Owned film and television content | 9,617 | 9,891 |
| Licensed content including sports rights | 14,668 | 13,611 |
| Other programming and production | 1,314 | 1,440 |
Source: Annual business disclosures and financial notes. Annual values are reported unless a row is marked derived.
The content rows reconcile to programming and production expense. Their accounting expense dates need not match payment dates under multiyear rights or film production commitments. A valuation must avoid deducting production cash twice after starting from operating cash, while still funding new content that supports future subscriptions and licensing. The rounded component rows sum to $34,950 million, $1 million below the reported $34,951 million total; retain that rounding difference.
Reconcile reported cash before forecasting investor cash
| Measure | FY2024 | FY2025 |
|---|---|---|
| Operating cash | 27,673 | 33,643 |
| 2025 property capex | Positive deduction | 11,750 |
| 2025 intangible-asset payments | Positive deduction | 2,658 |
| 2025 Beijing construction payment | Positive deduction | 11 |
| 2025 cash after all three deductions: derived | Defined investment boundary | 19,224 |
Source: Annual cash-flow statement and related notes. Annual values are reported unless a row is marked derived.
The 2025 bridge is 33,643 minus 11,750 minus 2,658 minus 11 = $19,224 million. Physical-capex-only cash would be $21,893 million and omit the other displayed investment payments. Acquisitions, financing and distributions are outside this subtotal; the difference is not evidence of a higher distributable-cash amount.
The later interim period stays separate
| Observation | Period-specific evidence |
|---|---|
| Reported period basis | Q3 2026 covers 2026-07-01 through 2026-09-30 and was released 2026-10-22. Revenue was $29,298 million in this quarter. |
| Interpretation boundary | The newer quarter's reported revenue decline and pro-forma growth after Versant use different comparison populations. Gross property investment, intangible spending and completed versus proposed portfolio changes remain separate funding questions. |
Source: official reporting for the stated period. The dated quarter is not annualized here and is not added to either full-year column. Later reporting must be checked before refreshing the valuation date.
Turn the statements into a DCF operating case
Model connectivity customers and network investment separately from content, studios and park projects. Translate the recurring operating result into investor cash with taxes, noncash charges, content timing, working capital and physical/intangible investment. Then reconcile the completed Versant separation and other disposals to the retained perimeter, stranded costs and financing. A proposed later transaction stays an explicit scenario until completed.
| Driver | Evidence to carry into the forecast | Downside condition to test |
|---|---|---|
| Connectivity economics | Subscribers, realized revenue and network spending | Customer economics weaken while network commitments remain due |
| Content investment | Rights/production payments versus amortization and demand | Cash obligations continue after audience or licensing assumptions weaken |
| Attraction and portfolio timing | Project opening, usable capacity and retained businesses | Investment is paid before the assumed revenue or separation benefit arrives |
Compare a connectivity downside with a delayed attraction-opening case instead of blending both into one group margin. Assign maintenance and growth investment only as explicit analytical categories. A reported sale gain or a proposed future separation cannot substitute for a sustainable retained operating case.
Use the Comcast financial analysis for the broader operating context, the company forecast to state the operating assumptions, and the DCF calculator only after defining the investor cash stream. Keep the statement definitions, reporting dates and your own assumptions visible when comparing valuation cases.
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