Netflix, Inc. (NFLX) Valuation — DCF, Graham & Comparables

Netflix, Inc. (NFLX) — Price $75.63 Communication ServicesEntertainment — NASDAQ

Latest reported results:

Valuation dashboard for Netflix, Inc. (NFLX) with P/E 23.81, P/B 10.68, EV/EBITDA 10.69 and dividend yield 0.00%. DCF, Graham Number and Earnings Power Value models plus sector comparison against other Communication Services companies.

Netflix, Inc. serves as a worldwide entertainment provider. Its comprehensive library features television series, motion pictures, documentaries, and mobile games, spanning numerous genres and languages. Members can effortlessly stream this content through a variety of internet-connected devices, including smart TVs, digital media players, cable boxes, and mobile phones.

Analysis Summary

Netflix, Inc. reported revenue of $45.18B in the most recent fiscal year, growing at a 5-year CAGR of 12.6%. Net income reached $10.98B, with a 31.8% 5-year CAGR.

Trailing-twelve-month margins: gross margin 49.1%, operating margin 29.7%, net margin 28.2%.

At the current price of $75.63, NFLX trades at a P/E of 23.81 and an ROE of 47.96%. Market capitalisation stands at $314.9B, placing it among large-cap names.

Balance sheet quality for NFLX: current ratio of 1.2. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio23.81
Price / Book10.68
EV / EBITDA10.69
Dividend Yield0.00%

Valuation Models

DCF Fair Value$112.88
vs Current Price+49.2%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
NFLXNetflix, Inc.$318.2B23.8110.6848.0%
NWSANews Corporation$16.9B32.152.166.6%
DISThe Walt Disney Company$185.8B22.431.727.9%
LYVLive Nation Entertainment, Inc.$39.8B483.7573.3%
TKOTKO Group Holdings, Inc.$14.5B62.964.196.4%

Price

Price$75.63
Market Cap$314.9B
ExchangeNASDAQ
CountryUS

Profitability

Return on Equity47.96%
Return on Invested Capital24.34%
Return on Assets23.35%
Gross Margin49.12%
Operating Margin29.68%
Net Margin28.22%

Related companies: DIS · IMAX · LYV · MSGE · NWSA · PLAY · RSVR

Explore sector: Communication Services · Entertainment

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