Value Comcast stock by customer number?

**wonton** Tue Feb 22, 2005 9:06 pm

Value Comcast stock by customer number?
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**blast_investor** Wed Feb 23, 2005 1:11 am

Well, Buffet has not disclosed or I have not read anything on the reason behind this yet.

There is FA camp that use per customer pricing model to value cable stocks just like radio or TV station business. The idea is that cable firm can get money from monthly recurring revenue and a cut in ads revenue.
Therefore, a cable firm can be priced based on how many customers they have.

Further more, Cable is entering phone business so that potentially Cable firm be pretty big into phone revenues. Cable firm has more growth than Satellite TV in this sense

I have read report that based on per customer pricing analysis, Comcast is cheap in that metrics.

Personally, I do not like the idea of using per Customer pricing to value a company stock. I do not know whether or not Buffet is pricing Comcast based on per customer modeling. Certainly Cable company business model is very interesting, but the valuation is issue here and Buffet is not giving out his idea on the investment rational.