Comcast: A $100 BIllion Stock At 6x P/E

Comcast stock (NASDAQ: CMCSA), one of the largest cable TV and internet providers in the U.S., has seen its stock tumble to about $28 per share, down more than 50% from its September 2022 peak of $61.75. The selloff has left Comcast’s valuation at a modest 6.5x forward earnings, with a dividend yield approaching 5% –  levels that suggest investors are pricing in a prolonged slowdown.

Image by Alexander Fox | PlaNet Fox from Pixabay

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The weakness reflects a mix of structural and cyclical challenges. The broadband market has slowed sharply after the pandemic-driven surge, while cord-cutting continues to erode the company’s cable TV subscriber base. Comcast’s broadband business is also under pressure from wireless carriers that are leveraging their high-capacity 5G networks to offer fixed wireless broadband services, intensifying competition. Adding to investor unease, Comcast carries a heavy debt load of nearly $100 billion.

Operationally, the company lost 104,000 broadband customers in the most recent quarter – its fourth straight quarter of declines. Adjusted EPS came in at $1.12, slightly above expectations but flat year-over-year, while consolidated revenue fell 2.7% to $31.2 billion, although this was partly due to a tough comparison with last year’s Paris Olympics boost. With sentiment deeply negative and valuation compressed, the key question is: what catalysts could drive a re-rating in Comcast’s stock?

Wireless Convergence

Comcast’s wireless franchise remains resilient, adding a robust 414,000 net domestic subscribers in Q3 2025. Xfinity Mobile now has 8.9 million lines (up 1.2 million YoY). This “converged” strategy drives lower churn for bundled households, lifts average revenue per account and drives a virtuous cycle: higher retention, lower acquisition costs. This could help Comcast defend its 31.4 million broadband base against fixed wireless access (FWA)  erosion.

Broadband Subscriber Losses Moderating

Domestic broadband net losses have steadily improved: -199,000 in Q1 2025, -226,000 in Q2, and just -104,000 in Q3—less than half the prior quarter’s figure. This deceleration reflects easing FWA intensity, Comcast’s mid-split upgrades enabling multi-gig speeds, and targeted retention offers. A pivot towards flat net adds in 2026 would signal peak competitive pressure, while ARPU growth reacceleration (Q3 up 2% YoY excluding one-offs) addresses saturation fears. Stabilized 31.4 million subs with 2% to 3% annual ARPU uplift could continue to drive high-margin revenue growth as costs are largely fixed.

Theme Parks Growth

The Parks segment delivered 18% YoY revenue growth to $2.72 billion in Q3 2025, fueled by record domestic attendance, higher per-cap spending, and the May 2025 opening of Epic Universe in Orlando – Universal’s largest-ever park investment. Early indicators (soft-open data, hotel bookings) an attendance uplift for the Orlando resort in 2026 with the ramp-up of ride capacity and full scaling of Epic Universe throughout 2026.

Pricing Simplification and CX Overhaul to Rebuild Loyalty

Comcast is streamlining rate plans, eliminating hidden fees, and investing in AI-driven support tools to slash call-center interactions and reduce the number of dissatisfied customers. Early pilots show churn reduction in test markets. Improved retention directly bolsters unit economics. As service perception improves, Comcast could have more flexibility with pricing and this could support a re-rating.

Portfolio Rationalization, Regulatory Tailwinds