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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (45198)	5/3/2012 11:12:06 PM
From: E_K_S	Read Replies (1) \| Respond to of 78470

So help me out on which metric is best for measuring value when looking at these companies: Comcast Corporation (CMCSA) -NasdaqGS Walt Disney Company (The) Commo (NYSE: DIS) CBS Corporation Class B Common (NYSE: CBS) goo.gl I peeled off 25% of my CMCSA bought 10/2005 (@ $18.85) as the stock was trading near it's all time high and their recently reported earnings were not that good (at least based on expectations). CMCSA recently acquired NBC to diversify their business away from direct cable services where margins are dictated by the content providers and monthly customer cable bills are at the highest levels in the history of the business. Internet streaming may/will displace premium cable channels. As a result, I decided to take 25% of my long term capital gains off the table. Similar companies are CBS and DIS but neither have the investment in the infrastructure to deliver internet and cable services as CMCSA has. I know you believe that EV/EBITDA is the best measure to use where the lower value is the better value buy. Here are the links where I obtained the relevant company financial statistics: CMCSA: advfn.com DIS: advfn.com CBS: advfn.com EV/EBITA CMCSA: Enterprise Value (EV)/EBITDA 6.88 DIS: Enterprise Value (EV)/EBITDA 11.39 CBS: Enterprise Value (EV)/EBITDA 11.58 PE CMSCA: P/E Ratio (1 month ago) - LTM 20.0 DIS: P/E Ratio (1 month ago) - LTM 16.5 CBS: P/E Ratio (1 month ago) - LTM 17.6 So based on the EV/EBITA, CMCSA is probably still undervalued by 2:1 when looking at the alternative candidate stocks DIS & CBS. I know that the core asset composition for each company is different but the market cap for CMCSA and DIS are equivalent so some of the same value measures are reasonable to use (ie EV/EBITA). If you look at the long term (greater than 5 years) price chart for the three companies (CMCSA, DIS & CBS), you can see that CMCSA has had the best performance with DIS & CBS coming in at 30% less. So can I conclude that CMCSA is still the better value of the companies? What's your take? Disclosure: I own shares in CMCSA but have no position in DIS or CBS. I have considered DIS (who owns very profitable ESPN ) and CBS as replacements for CMCSA. EKS