Date of Completion

5-4-2024

Degree Type

Honors Thesis

Discipline

Finance (FNCE)

First Advisor

David Offenberg

Abstract

The current valuation of the global entertainment and media industry revenue is $2.32 trillion. When investing in the entertainment and media industry, individuals think of the fame and glamorous side of the entertainment industry. However, the industry is fiercely competitive and continuously evolving. Through examining the historical financial statement of the publicly traded media and technology conglomerate Comcast, as well as its competitors, I forecasted the future financial valuation of Comcast utilizing the Discounted Free Cash Flow and Public Comparable Firm Multiples models. This analysis examines the effects of the pandemic and other economic conditions on the entertainment and media industry and how companies are reacting and adapting to these changes. The report provides a holistic approach to investigating Comcast through a discussion of its business model, industry placement, and the various risks it faces from an operational basis. To explore these questions and create the financial models, I used databases such as Mergent Online, the SEC’s EDGAR, yahoo finance, financial statement analysis, and industry reports to construct an Excel model and written thesis report. My work highlights the importance of infrastructure and innovative thinking at this inflection point for the major players in the entertainment and media industry as they balance the competitive streaming market and attempt to attract consumers viewership and attention to their respective platforms. It explores an investment approach to the entertainment and media industry, and identifies factors investors ought to consider when looking to diversify their portfolios to create lower unsystematic risk. The report provides a starting point for closer investigation into the entertainment and media industry and its future.

Additional Files
Comcast Valuation.xlsm (206 kB)
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