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Integrative Learning Project
Javier E. Caycedo Medina
School of Business, Liberty University Online
Author Note
Javier E. Caycedo Medina
I have no known conflict of interest to disclose.
This document was based on the Report Writing guide provided by Hitchner, in Financial
Valuation 4th edition, and from USPAP 2020-2021. Any “uncited” sentences or paragraphs
directly taken from the textbooks were used for the purpose of simulating a real-life report, and
not to plagiarize them. I do NOT own the rights to that content; it was strictly used for academic
purposes.
Correspondence concerning this article should be addressed to Javier E. Caycedo Medina
Email: kcaycedo@liberty.edu
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Understanding with the Client and Scope work
This report created by XYZ Appraisal Associates LLC (XYZ), stablishes an
understanding with ABC Company, referred as “the client,” to explicitly embrace the
circumstances and objective of the creation of this valuation as is according to the USPAP. All
limitations and assumptions when this valuation was created are included in this report. In
accordance with the Scope of Work Rule from USPAP, the appraisers must:
1. Identify the problem solved
2. Determine and perform the scope of work necessary to develop credible assignment
results
3. Disclose the scope of work in the report
The objective of this report is to obtain a more specific understanding of Comcast
Corporation (CMCSA), by examining the last three years of financial statements accessed
through public records form the SEC database. After considering all valuation approaches,
management from XYZ selected the most applicable methods to financially evaluate CMCSA,
and to present a valuation conclusion considering the current market and industry situations. .
The valuation attached to this report contains the following sections:
•The History and Nature of the Business
•General Economic and Industry Outlook
•Book Value and Financial Position
•Approaches to Value
•Income Approach
•Present Value of Cash Flows
•Discounted Cash Flow Method
•Cost of Capital
•Cost of Equity
•Cost of Debt
•Market Approach
•Reconciliation of Valuation Methods
•Conclusion of Value
•Appendix A – Assumptions and Limiting Conditions
•Appendix B – Valuation Representation/Certification
Appendix C – Professional Qualifications and Credentials
•Appendix D – Other Sources Consulted
•Appendix E – Exhibits
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Table of Contents
Understanding with the Client and the Scope of Work 2
Executive Summary 5
History and Nature of the Business6
Overview 6
Market Area and Customers 6
Competition 6
Employees 7
Management and Key Persons 7
General Economic and Industry Outlook 7
General Economic Overview 7
Economic Indicator 7
Historical Key Trends 8
Book Value and Financial Positions 8
Income Statement Analysis 8
Net Revenues 8
Gross Profit 8
Programming and Production Expenses 9
Net Income 9
Balance Sheet Analysis 9
Total Assets 9
Total Liabilities 9
Stockholder’s Equity 9
Retained Earnings 9
Statement of Cash Flow Analysis 9
Operating Activities 9
Investing Activities 10
Financing Activities 10
Summary 10
Projections 10
Projected Income Statement 10
Projected Balance Sheet 10
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Projected Statement of Cash Flows10
Approaches to Value 11
Income Approach 11
Market Approach 11
Asset or Cost Approach 12
Summary of the Valuation Approaches and Methods 12
Income Approach 12
Present Value of Cash Flows 12
Discounted Cash Flow Methods 13
Cost of Capital 14
Cost of Equity 14
Cost of Debt 15
Market Approach 16
Guideline Companies 16
Selection of Guideline Companies 17
Analysis of Guideline Companies 18
Selection of Multiples and Method Results 20
Reconciliation of Valuation Methods 20
Conclusion of Value 21
Appendix A – Assumptions and Limiting conditions 22
Appendix B – Valuation Representation/Certification 23
Appendix C – Professional Qualifications of the Appraiser 24
Appendix D – Other Sources Consulted 25
Appendix E - Exhibits 26
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Executive Summary
Purpose of Valuation To assist ABC Company in the determination of the fair market
value for internal operations and tax planning purposes of a
100% equity interest in Comcast Corporation as of December
11, 2020.
Standard of Value Fair Market Value
Premise of Value Going Concern
Conclusion Based on this analysis as described in this valuation report, and
the facts and circumstances as of the valuation date, the
estimate of value as of December 11, 2020, of 100% equity
interest in Comcast Corporation, on a control, marketable basis
is $195.49 billion.
History and Nature of the Business
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Overview
Comcast Corporation (CMCSA) is a media and technology company that operates
worldwide. Cable communications, network, broadcast television, filmed entertainment, theme
parks, and sky are the main segments the company operates. 1 Its current Market Capitalization is
around $235.22 billion2. As of Dec. 31, 2019, the market capitalization of the company was
$204.52 billion.3
Market Area and Customers
As technology grows, CMCSA has also grow not only in revenue and market
capitalization, but also in the ownership of the major industry they are a part of, holding
approximately 10% of the total industry revenues.4 CMCSA has taken full advantage of the on-
demand technology, and has gained more participation in many other media and entertainment
sub-industries.
Competition
As mentioned above, CMCSA has gained multiple participation in various industries,
which means that the company has also gained more competitors. For the sake of this valuation,
and examining the current industry and market situation around the world, XZY management has
decided to compare CMCSA to other publicly traded companies in the on-demand entertainment
industry such as Netflix, The Walt Disney Company, Facebook, Inc., and others. Management
determined that it is expected for CMCSA to gain more competition with the time passing, which
means the company will need to increase in strategies to gain more subscriptions and viewers by
uploading more entertaining and current content.
1 https://www.capitaliq.com/CIQDotNet/company.aspx?companyId=173341
2 https://www.macrotrends.net/stocks/charts/CMCSA/comcast/market-cap
3 https://www.macrotrends.net/stocks/charts/CMCSA/comcast/market-cap
4 https://my.ibisworld.com/us/en/industry/51512/industry-at-a-glance
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Employees
CMCSA is a multi-billionaire company that currently holds approximately 190,000
employees. This information is important to mention since it is used as a reference to compare
CMCSA with other companies in market approach methods.
Management and Key Persons
As of the valuation date, management and key personnel of Comcast Corporation include
the individuals, and their titles shown in Exhibit 1.1
General Economic and Industry Outlook
General Economic Overview
Nowadays, the television and on-demand entertainment is the number one method of
home and family recreation, especially during the current health crisis the world is going
through. However, due to increases in unemployment rate, the industry average company
revenue went down approximately a 7%5. For the sake of this valuation, XYZ management has
decided to valuate this company as a part of the Media and Entertainment sub-industry, which is
a part of the Cable and other pay television services.
Economic Indicator
The majority of the income in this industry comes from subscription fees, and advertising
income, all across the segments of all companies. A key economic indicator for this industry is
their corporate profit. If a company is reporting a high corporate profit, other companies will be
willing to pay for advertising. On the other hand, the over all corporate profit through market
holders in this industry is expected to report a decrease at the end of 2020.6 Even though revenue
5 https://my.ibisworld.com/us/en/industry/51512/key-statistics
6 https://my.ibisworld.com/us/en/industry/51512/industry-performance
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from companies in this industry is expected to decrease, it is actually expected to see an increase
in the industry’s overall profit.7
Historical Key Trends
This industry’s demand shifter include, but are not limited to television losing is primacy,
industry generating more revenue from advertising, major companies focusing on expanding
their own content libraries further into digital distribution. All of the mentioned previously has
led the industry to see a decrease in the average gross profit margin of approximately 1.5 points
each year for the past three years, yet seeing an significant increase in the net profit margin. For
more details about this see Exhibit 2.1.
Book Value and Financial Position
CMCSA’s historical financial data from the past three years of operations were taken
directly from the 2019 10-K filings. Following, there is a more detailed examination of the
financial position of the company.
Income Statement Analysis – Exhibit 3.1
Net Revenues – Net revenues for the fiscal year ended on December 31, 2019 were $108.94
billion, which is nearly 15% more than the reported net revenues on 2018. This is due to increase
in subscriptions and increase in diversity of services offered but CMCSA.
Gross Profit – The gross profit of CMCSA increased proportionally with net revenues. An
increase of approximately 15% from 2018 to 2019 was reporting by the analysis performed by
XYZ management.
Programming and Production Expenses – According to the analysis provided by management,
CMCSA has been able maintain the cost of revenues around 30% of the total revenue throughout
7 https://my.ibisworld.com/us/en/industry/51512/industry-at-a-glance
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the past three years. This means that that company has been able to grow costs proportionate as
they increase revenue.
Net Income – After a major decrease of almost 49% in net income reported from 2017 to 2018,
because the company did not have a tax benefit, CMCSA was able to increase their net income
approximately 12% from 2018 to 2019. After adjustments, the net income had an increase of
11.3% in the last year reported.
Balance Sheet Analysis – Exhibit 3.2
Total Assets – After reporting an increase of approximately 34% on total assets from 2017 to
2018, CMCSA reported an increase of almost 5% from 2018 to 2019. This is due to the company
not acquiring as many intangible assets as they did in 2018.
Total Liabilities – CMCSA has been able to sustain levels of approximately an average of 67%
total liabilities from total assets, in the past three years. From 2018 to 2019, CMCSA had a very
minimal increase in total liabilities of .20%. This shows a very well debt management.
Stockholders’ Equity – Total equity has had an increase in the past three years reported, for an
average of 33% of the total assets.
Retained Earnings - From 2018 to 2019, CMCSA reported an increase of approximately 21% in
retained earnings.
Statement of Cash flow Analysis – Exhibit 3.3
Operating Activities – CMCSA has reported a cash inflow in this segment in the past three
years, while also increasing operating cash inflow year by year. The past year the company
reported an approximately 6% increase in cash inflows from operations.
Investing Activities – From 2018 to 2019, the company was able to decrease in almost a 71%
outflows in investments, after a great investment in acquisition in cash in 2018.
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Financing Activities – CMCSA reported a cash outflow in this segment in 2019, after re-paying
debt.
Summary
Overall, CMCSA has a strong financial position in the industry. The company is able to
acquire debt responsibly, and generate revenue and cash year after year no matter the
circumstances. For more specific key statistics and indicators of the company, see Exhibit 3.4
Projections
XYZ management used the implementation of the Simple Moving Average process. This
method allows forecasting an unbiased growth rate for future projections. XZY used the last
three years of historical data to forecast the next three years of financial data.
Projected Income Statement
Management determined and anticipated a growth of 13.21% increase in revenues. This
will project a proportionate increase in gross profit and operating income, which finally showing
an increase in the projected net income for the next three years of operations. Management used
21% as the corporate tax rate, and expects the company to have a tax expense, as it is shown in
Exhibit 4.1.
Projected Balance Sheet
Management projects the total assets to increase approximately 19.5% in the next three
years of operations. Total liabilities are expected to increase approximately 2.7% over the next
three years. An estimate of 33% of total assets is expected to be reflected in the total
stockholder’s equity. A significant increase in the retained earnings is projected for the next three
years of operations, as it is shown in Exhibit 4.2.
Projected Statement of Cash Flows
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Management projects cash inflows from operating activities, gradually increase cash
outflows in investing activities, and opposite to the last reported year of operations, management
projects a cash inflow from financing activities, as is it shown in Exhibit 4.3.
Approaches to Value
There are three approaches to value that are traditionally used to value an interest in an
operating company such as Comcast Corporation: the Income approach, the Market approach,
and the Asset Approach. The valuation of this company will be determined by the evaluation of
the best methods that represent the company.
Income Approach
The income approach determines the value indication of a business by examining and
applying calculations to financial data. For this valuation, the present value of cash flows, and
the discounted cash flow method were used. The application of this approach establishes value
by methods that discount or capitalize earnings or cash flows that reflect the market and the
company’s rate of return expectations.
Market Approach
The market approach seeks value of the business by comparing financial data of other
businesses or similar businesses transactions. Like businesses will be used to determine the value
of CMCSA by the understanding the market capitalization the company holds in the industry. by
doing this, management will be able to determine the fair market value of the company.
Asset or Cost Approach
The asset or cost approach calculates the value of a company by using one or more of the
methods based in the value of the assets net of liabilities. However, knowing that this approach
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does not necessarily work in profitable companies as a going concern, management decided not
to implement this method in this valuation.
Summary of the valuation Approaches and Methods
In this valuation, the income approach and the market approach were implemented to
determine the fair market value of CMCSA. Under the income approach, the present value of
cash flows and the discounted cash flow methods were implemented. Under the market
approach, the guideline public company method was implemented. As mentioned above, the
asset approach was not implemented in this valuation.
Income Approach
The income approach estimates the fair market value based on earnings, cash flow, and
dividend-paying capacity of the company. This approach evaluates the present worth of future
economic benefits discounted to the present value at a rate of return that is commensurate to the
company’s risk. As shown in Exhibit 5.1, net cash flows from the last three years of operations,
and for the projected three years of operations were calculated in order to execute this valuation
through the income approach.
Present Value of Cash Flows
Management decided that due to the profitability of this company, the rate of return used
in this method will be the cost of equity of approximately 16%. In this method, the cash flows
from the past three years of operation, of $36.6 billion, $37.4 billion, $42.3 billion, and the
projected value for the year ended in December 31st, 2020 of $51.4 billion were used in the
implementation of the formula below, and as shown in Exhibit 5.2.
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Value of the company for the year ended Dec. 31, 2020: $206.8 billion
Discounted Cash Flow Method
For this method, management used the projected cash flows for the next three operating
years: $51.4 billion, $ 56.6 billion, and $62.5 billion. Management determined that the discount
rate should be the average on the projected return on assets ratio for the year ended in Dec. 31,
2020, since this will be the maximum rate of risk management determined investors should look
at. The valuation was made by implement these values in the formula below, as it is also shown
in Exhibit 5.2.
Value of the company for the year ended Dec. 31, 2020: $161.9 billion
Cost of Capital
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This calculation is an indicator to show how companies acquire capital expenditures.
Management determined that it was important to include these calculations due to the risk that
implicates buying a company that operates in intangible assets as primary operating inventory.
This evaluation stablished that the cost of capital is approximately 17%. With the assumption
that the growth rate remains on 13.21%, the cost of capital will slightly decrease through the
years. This will mean that the company will be able to start financing their investments with
more money from revenue, than with cash from other sources. By this evaluation, management
determined that the risk associated with this company is low, as the Weighted Average Cost of
Capita (WACC) is low for a company that has an average historical net profit margin of 17.25%.
The formula used for the WACC calculation was the following.
WACC= (ke X We) + (kp X Wp) + (kd/(pt)[1-t] X Wd)
WACC = weighted average cost of capital
ke = cost of common equity capital
W = percentage of common equity in the capital structure, at market value
Kp = cost of preferred equity
Wp = percentage of preferred equity in the capital structure, at market value
kd/(pt) = cost of debt (pre-tax)
t = tax rate
Wp = percentage of debt in the capital structure, at market value
WACC: 17%
See Calculations in exhibit 5.3
Cost of Equity – Through examination and research on current and historical stock prices,
dividends, and shares, management determined that the cost of equity is approximately 16%.
This value was used as the required rate of return for the calculation of the present value of the
company in this approach. As it is shown in the financial exhibits, CMCSA has chosen to source
their investments more with the acquisition of debt, rather than with the acquisition of equity.
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Since the cost of equity is higher than the debt, management decided to implement the Capital
Asset Pricing Model (CAPM). This rate is used to compare investments within the company, in
order to select the one that can benefit the stockholders the most. Modified CAPM formula can
be summarized as follows:
E(Ri) = Rf + β X (RPm) + RPs ± RPc
E(Ri) = expected rate or return on the security i
R = rate of return available on a risk-free security as of the valuation date
β = beta
RPm = equity risk premium (market risk)
RPs = risk premium for small size
RPc = risk premium attributable to other company risk factors
Cost of Equity: 15.62%
Cost of Debt – The discount rate for debt in the capital structure is usually defined as the
marginal borrowing rate of the subject company, net to tax benefits associated with the
deductibility of the interest expense. After reviewing and running calculations, management
determined that the borrowing rate for CMCSA was 21.62% before taxes. After reflecting in the
equation below the tax deductibility of interest expense, the after tax cost of debt for CMCSA,
using a 21% tax rate, the cost of debt was 17.08%. Management expects this indicator to
decrease throughout the next years, as it is shown in the previous year reported; the long-term
debt had an approximately 9% increase from 2018 to 2019, after acquiring a massive debt in
2018. With this being said, management expects CMCSA to potentially fund their investments
sourcing more in equity than in debt. For specific calculations, see Exhibit 5.3.
After-Tax Cost of Debt: Kd = Kb (1-t)
Kd = After-Tax Cost of Debt
Kb = Borrowing Rate
t = Estimated Tax Rate
Cost of Debt: 17.08%
Market Approach
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Under the market approach, the guideline company’s method was considered, based in
the examination of their industry and their market capitalization value, as well as the quantity
and quality of available data; this, with the intention on valuating the company with a fair market
benchmarking approach. Management decided to compare CMCSA to its five major competitors
in the media and entertainment industry. Through this approach, management researched and
studied the different sales or valuation of similar assets in all companies, with the understanding
of the adjustments in sizes according to the share prices of the companies. There are several
methods under this approach, and all of them must have an understanding of standardized
information by converting them to multiples of a financial variable; in this case, revenue,
earnings before interest, tax depreciation, and amortization (EBITDA), and earning before tax
and interest (EBIT).
Guideline Companies
Under this method, companies are subject to a comparison with other companies within
similar industries. Management carefully review the industries CMCSA currently participates in
to have a fair selection of competitors. Even though no company is completely similar to another,
it is always possible to find a publicly traded company that partakes in similar transactions and
operations to generate revenue. For this method, the companies selected for valuation were
Alphabet, Inc., Facebook, Inc., Tencent Holdings Limited, The Walt Disney Company, and
Netflix, Inc. These companies were selected by management with the intention to compare
CMCSA to some of its major competitors in the past three years, and currently. The financial
data provided from both companies are considered credible sources that qualify for the usage and
implementation of the guideline public company method.
Selection of Guideline Companies
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An independent search for guideline companies was performed, using a database for
publicly traded companies. Some of the criteria were as follows:
Companies listed under SIC codes 4841 (Cable and other pay television
services), 7841 (Services-video tape rental), and 7370 (Services-computer
programing data procession)
A general search for “on-demand” in company description
Confirmation that adequate financial data were available for the company
Confirmation that the company’s stock was actively traded on an exchange or
in the over-the-counter market with price data available on a daily basis.
This report also considered a list of competitors and other companies provided by
management. By studying and understanding the current situation of the market and the industry,
and after discussing the prospective guideline companies with management, these five
companies were determined similar enough for the implementation of this method.
Alphabet, Inc.8 – Founded in 2015, provides online advertising, performance and brand
advertising services; operates through Google; such as Android, Chrome, Google Cloud, and
YouTube; and other Bets segments; such us other television services. As of December 31, 2019,
Alphabet, Inc. reported $161.86 billion in revenue.
Facebook, Inc.9 – Founded in 2004, develops products to enable people connection from all
around the world. Company’s products include Facebook, Instagram, Messenger, and WhatsApp.
The company has also ventured in new on-demand and live broadcast content production. As of
December 31, 2019, the company reported $70.70 billion in revenue.
8 https://www.capitaliq.com/CIQDotNet/Financial/KeyStats.aspx?CompanyId=29096
9 https://www.capitaliq.com/CIQDotNet/Financial/KeyStats.aspx?CompanyId=20765463
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Tencent Holdings Company10 – Founded in 1998, provides online value-added services and
internet advertising services. The company has invested in production and distribution of films
and television programs for on-demand content. As of December 31, 2019 the company reported
$446.70 billion in revenue.
The Walt Disney Company11 – Founded in 1923, operates as an entertainment company
worldwide. The company operates, invests and produces domestic cable and other on-demand
services for sports, entertainment, educational, and recreation content. As of December 31, 2019,
the company reported $69.61 billion in revenue.
Netflix, Inc.12 – Founded in 1997, this company operates solely in subscription-based streaming
entertainment services; includes television series, documentaries, films and others. Currently, the
company holds approximately 195 million subscriptions in 190 countries. As of December 31,
2019, the company reported $20.16 billion in revenue.
Analysis of Guideline Companies
Using the most recently filed 10-Ks provided by all five companies, management was
able to calculate financial ratios for the year ended in December 31, 2019. A more extensive
detailed of all calculations could be found in Exhibit 6.1.
Revenue – CMCSA reported revenue for the year ended in December 31, 2019 was $108.94
billion. Management determined that the guideline companies were similar in the product that
was being offered, and similar and diverse at the same time in the revenue they reported.
Liquidity Ratios – As shown in Exhibit 6.1, the current and quick ratio of all companies
compared are very similar; however, Facebook, Inc. indicates the higher liquidity, which means
that the company was financially healthy during the past year.
10 https://www.capitaliq.com/CIQDotNet/Financial/KeyStats.aspx?CompanyId=11042136
11 https://www.capitaliq.com/CIQDotNet/Financial/KeyStats.aspx?CompanyId=191564
12 https://www.capitaliq.com/CIQDotNet/Financial/KeyStats.aspx?CompanyId=32012
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Leverage Ratios – As it is discussed earlier in this report, and as it is shown in Exhibit 6.1,
CMCSA holds a very high ratio of leverage financed in debt. This means that comparing it to the
guideline companies, CMCSA is financing more of its investments in debt, and not so much with
equity like its competitors.
Activity Ratios – All companies studied in this report have a very similar turnover to its assets.
This means that in this industry, the revenues and sales are tied directly to its assets, and it is
common to be able to use the company’s assets towards the creating of more earnings.
Profitability & Margin Ratios – It is evident in Exhibit 6.1 that the companies in this industry
are profitable businesses. CMCSA, along with Facebook, Inc., holds one of the highest gross
margin rations, showing that the company manages to minimize cost of revenues. On the other
hand, CMCSA is one of the more average ones in minimizing other expenses and interest, as it is
shown on its 12% net income margin.
Growth Rate – Companies in this industry have an average 11% growth in their total revenues;
all companies in this report have a higher growth rate than the average. This means that the
companies evaluated in this report, including CMCSA, hold a higher present equity value based
on their expected growth in their revenues.
Net Income – This indicator is not the most reliable ratio to look at to make a decision in a
capital investment like the one addressed in this report. Even though there is an average growth
of 9% reported by the industry, the companies in this evaluation have had multiple factors like
increase in tax expenses, that have led the companies to report lower net income the last year of
operations, than previous years. This is common for all companies across this industry.
Selection of Multiples and Method Results
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CMCSA is a smaller company in size and in leverage that the guideline companies;
however, as mentioned above, it is more profitable than the majority of the guideline companies,
which increases the value of the company in the market. CMCSA has a higher growth rate than
the industry average, which means that the company exceeds the expectations in the acquisition
of revenue. Considering these and the other factors mentioned above, the median and the average
guideline company market multiples were applied to the average parameters form the last three
years reported; Net revenues, EBITDA, and EBIT. This report relied primary in the multiples
derived from the EBITDA and EBIT, from the most recent year of operations reported.
Calculations can be seen in Exhibit 6.2.
Value of the company for the year ended Dec. 31, 2019: $217.748 billion
Reconciliation of Valuation Methods
The selected guideline public companies are comparable to CMCSA and provided
valuable market data for the accomplishment of this evaluation. The discounted cash flow
method represents the expected growth the company will have as going concern. The present
value of cash flow represents the value that the company brings from its previous growth. As
indicated in Exhibit 7.1, the indicated value from the income approach is $184.36 billion, and the
value indicated from the market approach is $217.75 billion. This report intends to use both
approaches’ results to conclude in the value of the company.
Conclusion of Value
XYZ has performed a valuation for a 100% equity value for Comcast Corporation with
information provided as of December 31, 2019, on a control, marketable basis. This valuation
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was created solely to facilitate the determination of the value for internal operations and tax
planning purposes for the client. The estimate of value that comes from this report results from a
valuation engagement expressed as a conclusion of value. There were no restrictions or
limitations in the scope of XYZ’s work or data available for analysis. Calculations for the
selected 100% of the equity is shown in Exhibit 7.1.
Conclusion of Value: $195.49 billion
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Appendix A – Assumptions and Limiting Conditions
1. The conclusion of value arrived at herein is valid only for the stated propose as of the
date of the valuation
2. Financial statements and data were provided by the company through the SEC database.
3. Public information and industry data was provided by reliable sources.
4. XYZ does not provide assurance of the achievability of the purpose of the client.
5. Management projected the perpetuity, rate of return, and the discount rate used in the
calculations of this valuations,
6. The approaches utilized in this work did not compromised an examination in accordance
with generally accepted auditing standards.
7. XYZ has not perform an audit to CMCSA
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Appendix B – Valuation Representation/Certification
I represent/certify that, to the best of my knowledge and belief:
-The statements of fact contained in this report are true and correct.
-The reported analyses, opinion, and conclusions are limited only by the reported
assumptions and limiting conditions and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
-I have no (or the specified) present or prospective interest in the property that is in the
subject of this report, and I have no (or the specified) personal interest with respect to the
parties involved.
-I have performed no (or the specified) services, as an appraiser or in any other capacity,
regarding the company that is the subject of this report within the three-year period
immediately preceding the agreement with this assignment.
-I have no bias with respect to the company that is the subject of this report or to the
parties involved in this assignment.
-My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
-My compensation for completing this assignment is not contingent upon the development
or reporting of a predetermined value or direction in value that favors the cause of the
client, the amount of the value opinion, the attainment of a stipulated result, or the
occurrence of a subsequent event directly related to the intended use of this appraisal.
-My analyses, opinion, and conclusions were developed, and this report has been
prepared, in conformity with the USPAP.
-No one provided significant business and/or intangible asset appraisal assistance to the
person signing this certification.
______________________________
Javier E. Caycedo Medina, B.S.
XYZ Appraisal Associates LLC
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Appendix C – Professional Qualification of the Appraiser
JAVIER ENRIQUE CAYCEDO MEDINA, B.S.
Professional Qualifications
Experience
Javier is currently the Operations coordinator at the International Student Center at
Liberty University. He plans and takes care of the budget of the office. Javier joined XYZ this
Fall as part of an academic venture.
Education
Candidate to M.S. in Finance, Cognate in Financial Planning (2021)
B.S. in business Administration, Cognate in Finance (2019)
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INTEGRATIVE LEARNING PROJECT
Appendix D – Other Sources Consulted
Alphabet, Incorporated
Facebook, Incorporated
Tencent Holding Limited
Financial Valuation: Application and Models, 4th ed. James R. Hitchner.
Macrotrends.net
Net Advantage (Capitalq.com)
Comcast Corporation
The Walt Disney Company,
Netflix, incorporated
USPAP 2020-2021 Edition
IBIS World
The Wall Street Journal
--pp------
een
ee
Key
Professionals
Name
Roberts,
Brian
L.
Cavanagh,
Michael
J.
Lindsley,
Melinda
Murdock,
Daniel
C.
Zelesko,
Matthew
Miller,
Adam
Louis
Ryvicker,
Marci
Heller,
Jennifer
J.
Lawson,
Candy
Reid,
Thomas
J.
Newcomb,
Jennifer
Khoury
Cominiello,
Kristeen
Title
Chairman
&
CEO
Chief
Financial
Officer
Operations
Director
Executive
VP,
Chief
Accounting
Officer
&
Controller
Chief
Technology
Officer
Chief
Administration
Officer
Senior
Vice
President
of
Investor
Relations
Chief
Compliance
Officer,
VP
&
Senior
Deputy
General
Counsel
Senior
VP,
Chief
Compliance
Officer
&
Senior
Deputy
General
Counsel
Chief
Legal
Officer
&
Secretary
Executive
VP &
Chief
Communications
Officer
Vice
President
of
Sales
&
Marketing
26
INTEGRATIVE LEARNING PROJECT
Appendix E – Exhibits
Exhibit 1.1
Cable
&
Other
Pay
Television Services
Historical Industry
Average
Ratios
Dec.
31,
2019
Dec.
31,
2018
Dec.
31,
2017
Liquidity
Current
Ratio
1.8
0.6
1.1
Quick
Ratio
1.4
1.4
1.4
Leverage
Ratio
Debt
to
Total
Asset
Ratio
0.33
0.32
0.48
Debt
Equity
Ratio
0.25
0.63
0.74
Long-term
Debt
to
Equity
0.26
0.33
0.58
Times
Interest
Earned
Ratio
1.3
0.9
1.4
Activity
Ratios
Inventory
Turnover
N/A
N/A N/A
Fixed
Asset
Turnover
19 eS
1.9
Accounts
Receivable
Turnover
8.9
7.
8.7
Average
Collection
Period
41.01 46.79 41.95
Profitability
Ratios
Gross
Profit
Margin
28.10%
27.50% 29.30%
Operating
Profit
Margin
5.00%
4.90%
6.90%
Net
Profit
Margin
1.20%
-2.70%
-3.60%
Return
on
Total
Assets
5.00%
4.70%
5.70%
Return
on
Stockholders’
Equity
15.50% 15.90%
30.00%
Earnings
Per
Share
Price
Earnings
Ratio
[1]
15.2 14.3
9.1
27
INTEGRATIVE LEARNING PROJECT
Exhibit 2.1
Comcast
Corporation
Consolidated
Income
Statement
As
of
Dec.
31,
2019,
Dec.
31,
2018,
Dec.
31,
2017
USD
($)
$
in
Millions
Revenue
Costs
and
Expenses:
Programming
and
production
Other
operating
and
administrative
Advertising,
marketing
and
promotion
Depreciation
Amortization
Other
operating
gains
Total
costs
and
expenses
Operating
income
(loss)
Interest
expense
Investment
and
other
income
(loss),
net
Income
(loss)
before
income
taxes
Income
tax
(expense)
benefit
Net
income
Less:
Net
income
attributable
to
noncontrolling
interests
and
redeemable
subsidiary
preferred
stock
Net
income
attributable
to
Comcast
Corporation
Basic
earnings
per
commonshare
attributable
to
Comcast
Corporation
shareholders
(in
dollars
per
share)
Diluted
earnings
per
common
share
attributable
to
Comcast
Corporation
shareholders
(in
dollars
per
share)
Dividends
declared
per
common
share
(in
dollars
per
share)
Dec.
31,2019
Dec.
31,
2018
Dec.
31,
2017
$
108,942
$
94,507
$
85,029
34,440
29,692 25,355
32,807
28,094
25,449
7,617
7,036 6,519
8,663
8,281 7,914
4,290
2,736
2,216
-
(341)
(442)
87,817
75,498
67,011
21,125
19,009
18,018
(4,567) (3,542)
(3,086)
438
(225)
421
16,996
15,242
15,353
(3,673) (3,380)
7,569
13,323
11,862
22,922
266
131
187
$
13,057
|$
11,731
22,735
$
2.87
$
2.56 4.83
$
2.83
$
2.53
4.75
$
0.76
$
0.63
0.55
28
INTEGRATIVE LEARNING PROJECT
Exhibit 3.1
Comcast
Corporation
Consolidated
Balance
Sheet
As
of
Dec.
31,
2019,
Dec.
31,
2018,
Dec.
31,
2017
USD
($)
$
in
Millions
Current
Assets:
Cash
and
cash
equivalents
Receivables,
net
Programming
rights
Other
current
assets
Total
current
assets
Film
and
television
costs
Investments
Investment
securing
collateralized
obligation
Property
and
equipment,
net
Goodwill
Franchise
rights
Other
intangible
assets,
net
Other
noncurrent
assets,
net
Total
assets
Current
Liabilities:
Accounts
payable
and
accrued
expenses
related
to
trade
creditors
Accrued
participations
and
residuals
Deferred
revenue
Accrued
expenses
and
other
current
liabilities
Current
portion
of
long-term
debt
Total
current
liabilities
Long-term
debt,
less
current
portion
Collateralized
obligation
Deferred
income
taxes
Other
noncurrent
liabilities
Commitments
and
contingencies
Redeemable
noncontrolling
interests
Equity:
Common
stock
Additional
paid-in
capital
Retained
earnings
Treasury
stock,
872,791,028
Class
A
common
shares
Accumulated
other
comprehensive
income
(loss)
Total
Comcast
Corporation
shareholders’
equity
Noncontrolling
interests
Total
equity
Total
liabilities
and
equity
Dec.
31,
2019
Dec.
31,
2018
Dec.
31,
2017
$
5,500
$
3,814
$
3,428
11,292
11,104
8,834
3,877 3,746
1,613
4,723 3,184
2,468
25,392 21,848
16,343
8,933
7,837 7,087
6,989
7,883
6,931
694
E :
48,322
44,437
38,470
68,725 66,154
36,780
59,365 59,365
59,364
36,128 38,358
18,133
8,866
5,802
4,354
263,414 251,684
187,462
10,826
8,494
6,908
1,730
1,808
1,644
2,768
2,182
1,687
10,516
10,721
6,620
4,452
4,398
5,134
30,292
27,603 21,993
97,765
107,345
59,422
5,166
a é
28,180
27,589 24,259
16,765
15,329 10,972
1392
1,316 1,357
54 54
55
38,447
37,461
37,497
50,695
41,983
38,202
(7,517) (7,517) (7,517)
1,047
(368)
379
82,726
71,613
68,616
1,148
889 843
83,874
72,502
69,459
$
263,414
$
251,684
$
187,462
29
INTEGRATIVE LEARNING PROJECT
Exhibit 3.2
Comcast
Corporation
Consolidated
Statement
of
Cash
Flows
As
of
Dec.
31,
2019,
Dec.
31,
2018,
Dec.
31,
2017
USD
($)
$
in
Millions
Dec.
31,
2019
Dec.
31,
2018
Dec.
31,
2017
Operating
Activities
Net
income
$
13,323
$
11,862
$
22,922
Adjustments
to
reconcile
net
income
to
net
cash
provided
by
operating
activities:
Depreciation,
amortization
and
other
operating
gains
r
12,953
”
10,676
”
9,688
Share-based
compensation
1,021
826
7ol
Noncash
interest
expense
(income),
net
417 364
272
Net
(gain)
loss
on
investment
activity
and
other
(20)
576
(194)
Deferred
income
taxes
563
290
(10,646)
Changes
in
operating
assets
and
liabilities,
net
of
effects
of
acquisitions
and
divestitures:
Current
and
noncurrent
receivables,
net
(57)
(802) (869)
Film
and
television
costs,
net
(929)
(395) (197)
Accounts
payable
and
accrued
expenses
related
to
trade
creditors
(347)
(394)
173
Other
operating
assets
and
liabilities
(1,227)
1,294
(639)
Net
cash
provided
by
operating
activities
25,697
24,297
21,261
Investing
Activities
Capital
expenditures
(9,953) (9,774) (9,550)
Cash
paid
for
intangible
assets
(2,475) (1,935) (1,605)
Acquisitions
and
construction
of
real
estate
properties
(54)
(143) (418)
Construction
of
Universal
Beijing
Resort
(1,116)
(460)
(71)
Acquisitions,
net
of
cash
acquired
(370)
(38,219)
(532)
Proceeds
from
sales
of
businesses
and
investments
886
141
150
Purchases
of
investments
(1,899) (1,257) (2,292)
Deposits
-
- -
Other
140
793 785
Net
cash
provided
by
(used
in)
investing
activities
(14,841)
(50,854) (13,533)
Financing
Activities
Proceeds
from
(repayments
of)
short-term
borrowings,
net
(1,288)
379
(1,905)
Proceeds
from
borrowings
5,479
44,781
11,466
Proceeds
from
collateralized
obligation
5,175
- -
Repurchases
and
repayments
of
debt (14,354)
(8,798) (6,364)
Repurchases
of
common
stock
under
repurchase
program
and
employee
plans
(504)
(5,320) (5,435)
Dividends
paid
(3,735) (3,352) (2,883)
Purchase
of
Universal
Studios
Japan
noncontrolling
interests
-
-
(2,299)
Issuances
of
common
stock
-
- -
Distributions
to
noncontrolling
interests
and
dividends
for
redeemable
subsidiary
preferred
stock
(311)
(277) (252)
Other
357
(273)
100
Net
cash
provided
by
(used
in)
financing
activities
(9,181)
27,140
(7,572)
Impact
of
foreign
currency
on
cash,
cash
equivalents
and
restricted
cash
5
(245)
-
Increase
(decrease)
in
cash,
cash
equivalents
and
restricted
cash
1,680
338
156
Cash,
cash
equivalents
and
restricted
cash,
beginning
of
year
3,909 33071 3,415
Cash,
cash
equivalents
and
restricted
cash,
end
of
year
$
5,589
$
3,909
$
3,571
30
INTEGRATIVE LEARNING PROJECT
Exhibit 3.3
Comcast
Corporation
Historical
Ratios
Dec.
31,
2019
Dec.
31,
2018
Dec.
31,
2017
Liquidity
Current
Ratio
0.84
0.79
0.74
Quick
Ratio
r
0.55" 0.54"
0.56
Leverage
Ratio
Debt
to
Total
Asset
Ratio
0.68
0.71
0.63
Debt
Equity
Ratio
2.14
2.47
1.70
Long-term
Debt
to
Equity
70
2.09
1.38
Times
Interest
Earned
Ratio
4.63
5.37
5.84
Activity
Ratios
Inventory
Turnover
N/A
N/A N/A
Fixed
Asset
Turnover
230
2.28
23°
Accounts
Receivable
Turnover
9.73 9.48
7.
Average
Collection
Period
3752
38.50 37.63
Profitability
Ratios
Gross
Profit
Margin
68.39%
68.58%
70.18%
Operating
Profit
Margin
19.39%
20.11% 21.19%
Net
Profit
Margin
12.23%
1576
26.96%
Return
on
Total
Assets
5.06%
4.71%
12.23%
Return
on
Stockholders’
Equity
15.88% 16.36%
33.00%
Earnings
Per
Share $
2.83
$
Doo
iD
4.75
Price
Earnings
Ratio
[1]
15.54
12.97
7.96
31
INTEGRATIVE LEARNING PROJECT
Exhibit 3.4
Comcast
Corporation
Consolidated projected
Income
Statement
As
of
Dec.
31,
2020,
Dec.
31,
2021,
Dec.
31,
2022
USD
($)
$
in
Millions
Dec.
31,
2021
Dec.
31,
2022
Dec.
31,
2020
Revenue
$
158,072
$
139,627
$
123,334
Costs
and
Expenses:
Programming
and
production
$
48,923.29
$
43,214.49
$
38,171.84
Other
operating
and
administrative
$
47,300.80
$
41,781.32
$
36,905.90
Advertising,
marketing
and
promotion
$
11,646.48
$
10,287.47
$
9,087.04
Depreciation
$
13,710.97
$
12,111.05
$
10,697.82
Amortization
$
4,973.50
$
4,393.15
$
3,880.52
Other
operating
gains
$
(464.02)
$
(409.87)
$
(362.04)
Total
costs
and
expenses
126,091 111,378
98,381
Operating
income
(loss)
31,981 28,249 24,953
Interest
expense
$
(6,095.96)
$
(5,384.63)
$
(4,756.31)
Investment
and
other
income
(loss),
net
$
347.28
$
306.76
$
270.96
Income
(loss)
before
income
taxes
26,232
23,171
20,467
Income
tax
(expense)
benefit
(5,508.73)
(4,865.92)
(4,298.12)
Net
income
20,723
18,305
16,169
Less:
Net
income
attributable
to
noncontrolling
interests
and
redeemable
subsidiary
preferred stock
318
281
248
Net
income
attributable
to
Comcast
Corporation
$
20,406
$
18,025
$
15,921
32
INTEGRATIVE LEARNING PROJECT
Exhibit 4.1
Comcast
Corporation
Consolidated projected
Balance
Sheet
As
of
Dec.
31,
2020,
Dec.
31,
2021,
Dec.
31,
2022
USD
($)
$
in
Millions
Dec.
31,
2022
Dec.
31,
2021
Dec.
31,
2020
Current
Assets:
Cash
and
cash
equivalents
$
45,136
$
38,553
$
17,706
Receivables,
net
11,875.31 11,677.60 11,483.18
Programming
rights
4,298.13 4,152.90 4,012.58
Other
current
assets
12,594.97
9,082.47 6,549.54
Total
current
assets
73,904 63,466
39,751
Film
and
television
costs
12,645.88
11,262.43 10,030.32
Investments
7,243.05 7,157.36
7,072.68
Investment
securing
collateralized
obligation
000
Property
and
equipment,
net
68,119.68 60,752.39
54,181.89
Goodwill
77,053.20 74,170.64
71,395.92
Franchise
rights
59,366.50
59,366.00 59,365.50
Other
intangible
assets,
net
30,186.16
32,049.40
34,027.64
Other
noncurrent
assets,
net
25,944.01 18,138.47
12,681.31
Total
assets
354,462
326,363 288,506
Current
Liabilities:
Accounts
payable
and
accrued
expenses
related
to
trade
creditors
21,249.64
16,971.64
13,554.89
Accrued
participations
and
residuals
1,881.11
1,829.33
1,778.97
Deferred
revenue
5,818.40 4,542.11 3,545.78
Accrued
expenses
and
other
current
liabilities
9,924.22
10,117.68 10,314.92
Current
portion
of
long-term
debt
4,618.01
4,562.00 4,506.66
Total
current
liabilities
43,491 38,023
33,701
Long-term
debt,
less
current
portion
79,542.98 87,337.40 95,895.60
Collateralized
obligation
000
Deferred
income
taxes
35,434.15 32,829.30 30,415.95
Other
noncurrentliabilities
32,383.21
26,002.46 20,878.97
Commitments
and
contingencies
Redeemable
noncontrolling
interests
1,397.55 1,388.98
1,380.46
Equity:
Common
stock
52.54
53.02 53.51
Additional
paid-in
capital
39,928.18 39,428.22 38,934.52
Retained
earnings
135,169.79
103,426.46
75,414.43
Treasury
stock,
872,791,028
Class
A
common
shares
(7,517.00)
(7,517.00) (7,517.00)
Accumulated
other
comprehensive
income
(loss)
(7,272.95)
3,811.74
(1,997.72)
Total
Comcast
Corporation
shareholders’
equity
160,361 139,202
104,888
Noncontrolling
interests
1,852.61
1,579.44
1,346.55
Total
equity
162,213
140,782
106,234
Total
liabilities
and
equity
$
354,462
$
326,363
$
288,506
33
INTEGRATIVE LEARNING PROJECT
Exhibit 4.2
Operating
Activities
Net
income
Adjustments
to
reconcile
net
income
to
net
cash provided
by
operating
activities:
Depreciation,
amortization
and
other
operating
gains
Share-based
compensation
Noncash
interest
expense
(income),
net
Net
(gain)
loss
on
investment
activity
and
other
Deferred
income
taxes
Changes
in
operating
assets
and
liabilities,
net
of effects of
acquisitions
and
divestitures:
Current
and
noncurrent
receivables,
net
Film
and
television
costs,
net
Accounts
payable
and
accrued
expenses
related
to
trade
creditors
Other
operating
assets
and
liabilities
Net
cash
provided
by
operating
activities
Investing
Activities
Capital
expenditures
Cash
paid
for
intangible
assets
Acquisitions
and
construction
of
real
estate
properties
Construction
of
Universal
Beijing
Resort
Acquisitions,
net
of
cash
acquired
Proceeds
from
sales
of
businesses
and
investments
Purchases
of
investments
Deposits
Other
Net
cash
provided
by
(used
in)
investing
activities
Financing
Activities
Proceeds
from
(repayments
of)
short-term
borrowings,
net
Proceeds
from
borrowings
Proceeds
from
collateralized
obligation
Repurchases
and
repayments
of
debt
Repurchases
of
common
stock
under
repurchase
program
and
employee
plans
Dividends
paid
Purchase
of
Universal
Studios
Japan
noncontrolling
interests
Issuances
of
common
stock
Distributions
to
noncontrolling
interests
and
dividends
for
redeemable
subsidiary
preferred
stock
Other
Net
cash
provided
by
(used
in)
financing
activities
Impact
of
foreign
currency
on
cash,
cash
equivalents
and
restricted
cash
Increase
(decrease)
in
cash,
cash
equivalents
and
restricted
cash
Cash,
cash
equivalents
and
restricted
cash,
beginning
of
year
Cash,
cash
equivalents
and
restricted
cash,
end
of
year
Comcast
Corporation
Consolidated
projected
Statement
of
Cash
Flow
As
of
Dec.
31,
2020,
Dec.
31,
2021,
Dec.
31,
2022
Dec.
31,
2022
USD
($)
$
in
Millions
Dec.
31,
2021
Dec.
31,
2020
$
20,723
$ 18,305 16,169
18,684 16,504
14,578
1,627
1,393 1,192
799
643 518
68
(45)
30
494
516 539
(198)
(194)
(191)
(1,383)
(1,232)
(1,097)
4,278
3,417
2,729
(7,806) (5,457) (3,815)
37,286
33,849 30,652
(10,590) (10,373) (10,161)
1,863 1,978
2,100
(7,367) (6,571) (5,860)
(15,936)
(6,569) (2,708)
(0) (0)
(4)
1
1 1
(86)
(85) (84)
29
49
83
(32,086) (21,569) (16,632)
7,495
(4,167)
2,317
44,756
22,223 11,034
(6,668) (3,309) (2,732)
(78)
(145)
(271)
(5,511) (4,841) (4,252)
(426)
(384)
(346)
(2,938)
1,455
(721)
36,629
10,832
5,030
41,829
23,112
19,050
47,751
24,639
5,589
$
89,580
$
47,751
24,639
34
INTEGRATIVE LEARNING PROJECT
Exhibit 4.3
Net
Income
Taxes
Depreciaton
and
Amortzaton
Interest
Expense
EBITDA
Net
Working
Capital
current
Net
Working
Capital
Expenditures
Dividends
Net
Cash
Flow
Comcast
Corporation
Net
Cash
Flow
USD
($)
$
in
Millions
Dec.
31,
2019
Dec.
31,
2018
Dec.
31,
2017
Dec.
31,
2022
Dec.
31,
2021
Dec.
31,
2020
$
13,323
$
11,862
$
22,922
3,673
3,380
(7,569)
12,953
10,676
9,688
4,567
3,542
3,086
34,516
29,460
28,127
(5,948)
(5,171)
(3,944)
9,953 9,774 9,550
3,735
3,352 2,883
$
42,256
$
37,415
$
36,616
$
26,232
$
23,471
1%
20,467
5,509
4,866 4,298
18,684 16,504 14,578
6,096 5,385
4,756
56,521
49,926 44,100
(10,105)
(8,548)
(7,149)
10,590
10,373
10,161
5,511
4,841 4,252
$
62,517
$
56,592
$
51,364
35
INTEGRATIVE LEARNING PROJECT
Exhibit 5.1
Comcast
Corporation
Income
Approach
USD
($)
$
in
Millions
Present
Value
of
Cash
Flows
Rate
15.62%
FV
of
Cashfbws
to
2020
CF1
-
2017
$
36,616.00
$56,589.91
CF2
-
2018
37,415.00
50,013.95
CF3
-
2019
42,256.00
48,855.23
CF1
-
2020
51,363.81 51,363.81
|
Net
Present
Value
on 2020
$206,822.91
|
Discounted
Cash
Flow
Method
Discount
Rate
5.60%
CF1
-
2020
51,363.81
CF2
-
2021
56,592.06
CF3
-
2022
62,517.25
|
Net
Present
Value
$161,899.96
|
36
INTEGRATIVE LEARNING PROJECT
Exhibit 5.2
Cost
of
Capital
Cost
of
Equity
(Ke)
15.62%
Afer-Tax
cost
of
Debt
Borrowing
Rate
(Kb)
21.62%
Estmated
Tax
Rate
(t)
21.00%
Cost
of
Debt
(Kd)
Paes
Weighted
Average
Cost
of
Capital
Capital
Structure
Cost
Debt
68.16%
17.08%
11.64%
Common
Equity
31.84%
15.62%
4.97%
WACC
16.61%
Rounded
17%
37
INTEGRATIVE LEARNING PROJECT
Exhibit 5.3
Profitability
Return
on
Assets
%
Return
on
Capital
%
Return
on
Equity
%
Return
on
Common
Equity
%
Margin
Analysis
Gross
Margin
%
SG&A
Margin
%
EBITDA
Margin
%
EBITA
Margin
%
EBIT
Margin
%
Earnings
from
Cont.
Ops
Margin
%
Net Income
Margin
%
Net Income
Avail.
for
Common
Margin
%
Normalized
Net
Income
Margin
%
Levered
Free
Cash
Flow
Margin
%
Unlevered
Free
Cash
Flow
Margin
%
Asset
Turnover
Total
Asset
Turnover
Fixed
Asset
Turnover
Accounts
Receivable
Turnover
Inventory
Turnover
Short
Term
Liquidity
Current
Ratio
Quick
Ratio
Cash
from
Ops.
to
Curr. Liab.
Avg.
Days
Sales
Out.
Avg.
Days
Inventory
Out.
Avg.
Days
Payable
Out.
Avg.
Cash
Conversion
Cycle
Long
Term
Solvency
Total
Debt/Equity
Total
Debt/Capital
LT
Debt/Equity
LT
Debt/Capital
Total
Liabilities/Total
Assets
Growth
Over
Prior
Year
Total
Revenue
Gross
Profit
EBITDA
EBITA
EBIT
Earnings
from
Cont.
Ops.
Net Income
Normalized
Net
Income
Diluted
EPS
before
Extra
For
The
Year
Ended
December
31,
2019
Ratios
comparison
Comcast
Corporation
Alphabet
Inc.
Facebook,
Inc.
Tencent
Holdings
Limited
The
Walt
Disney
Company
Netflix,
Inc.
5.1%
6.9%
16.8%
16.9%
68.4%
37.1%
31.3%
23.3%
19.4%
12.2%
12.0%
12.0%
9.1%
10.0%
12.6%
0.4x
2.3x
9.7x
NA
0.8x
0.6x
0.8x
37.5
NA
102.4
NA
131.4%
56.8%
125.3%
54.2%
67.6%
15.3%
14.9%
13.5%
16.9%
11.1%
12.3%
11.3%
3.7%
11.9%
9.0%
11.4%
18.1%
18.1%
55.6%
17.0%
29.7%
23.0%
22.5%
21.2%
21.2%
21.2%
14.9%
15.8%
15.8%
0.6x
22K
7.0x
68.3x
3.4x
3.3x
1.2x
52.1
5.3
25.3
32.1
7.9%
7.3%
7.3%
6.8%
27.0%
18.3%
16.4%
15.6%
11.4%
11.9%
11.7%
11.7%
15.6%
12.5%
13.0%
15.2%
20.0%
20.0%
81.9%
28.8%
42.0%
34.7%
33.9%
26.1%
26.1%
26.1%
21.9%
22.4%
22.4%
0.6x
2.0x
8.3x
NA
4.4x
4.3x
2.4x
44.2
NA
31.2
NA
11.0%
9.9%
9.8%
8.9%
24.2%
26.6%
24.6%
1.7%
(3.9%)
(3.7%)
(16.4%)
(16.4%)
(2.2%)
(15.1%)
7.3%
9.7%
22.7%
24.7%
44.4%
19.8%
36.7%
33.3%
25.8%
25.4%
24.7%
24.7%
15.1%
21.5%
22.8%
0.4x
7.4x
11.5x
NM
11x
0.9x
0.6x
31.7
0.9
134.1
(101.5)
47.6%
32.2%
40.1%
27.2%
48.8%
20.7%
17.9%
23.8%
21.8%
24.4%
19.9%
18.5%
16.6%
17.2%
5.5%
71%
13.9%
15.1%
39.6%
15.2%
24.4%
20.3%
18.4%
15.7%
15.9%
15.0%
9.2%
74%
9.1%
0.5x
2.3X
6.7x
9.4x
0.9x
0.7x
0.2x
54.0
38.7
80.9
11.8
45.8%
31.4%
37.2%
25.5%
47.0%
17.1%
3.1%
(8.0%)
(9.9%)
(17.0%)
(16.6%)
(12.3%)
(23.3%)
(25.1%)
5.4%
8.2%
29.1%
29.1%
38.3%
17.7%
13.4%
12.9%
12.9%
9.3%
9.3%
9.3%
6.4%
77.5%
79.5%
0.7x
16.0x
49.3x
NA
0.9x
0.9x
NM
7.4
NA
18.2
NA
215.9%
68.3%
213.4%
67.6%
77.7%
27.6%
32.4%
60.4%
62.2%
62.2%
54.1%
54.1%
68.1%
54.1%
38
INTEGRATIVE LEARNING PROJECT
Exhibit 6.1
Media
and
Entertainment
[1]
Market
Approach
Valuation
Guideline
Puiblic
Company
-
As
of Dec.
31,
2019
TEV/Total
Revenue
TEV/EBITDA
TEV/EBIT
P/Diluted
EPS Before
Extra
P/BV
Price/Tang
BV
Compettors
Alphabet
Inc.
6.8x
21.7x
30.0x 36.0x
6.0x
6.8x
Facebook,
Inc.
10.5x
24.0x
31.0x
43.1x
7.8x 9.7x
Tencent
Holdings
Limited
12.6x
34.0x
49.6x
50.6x
10.7x
16.0x
The
Walt
Disney
Company
4.9x
20.1x 26.7x
24.7x
3.1x
0.0x
Nettix,
Inc.
11.5x
79.2x 89.4x
121.3x
29.0x
0.0x
Mean
9.3x
35.8x 45.3x
55.1x
11.3x
6.5x
Median
10.5x
24.0x
31.0x
43.1x
7.8x 6.8x
Industry
Average
3.6x
13.9x
21.2x
24.3x
3.5x 5.0x
Coeftient
of
Variaton
”
3.5x” 6.2x”
10.3x”
11.0x”
3.2x”
6.6x
Comcast
Corporaton
3.1x 9.8x
16.5x
17.8x
2.8x
NM
Parameter
Multple
Equity
Value
Business
Enterprise
Multples
Net
Revenue
$
96,159.33
3.60
$
346,173.60
EBITDA
$
30,703.00
13.90
426,771.70
EBIT
$
18,982.00
21.20
402,418.40
Selected
value
391,/87.90
Cash"$
5,500
Total
Debt
$
179,540
Indicated
value
$
217,747.90
39
INTEGRATIVE LEARNING PROJECT
Exhibit 6.2
Comcast
Corporation
Reconciliation
of
Valuation
Methods
USD
($)
$
in
Millions
Income
Approach
$
184,361.43
Present
Value
of
Cash
Flows
$206,822.91
33%
$68,940.97
Discounted
Cash Flow
Method
$161,899.96
33%
$53,966.65
Market
Approach
Guideline
Public
Company
$217,747.90
33%
$72,582.63
Selected
100%
of
the
Equity
$195,490.26
40
INTEGRATIVE LEARNING PROJECT
Exhibit 7.1
