NFLX Valuation

Netflix Inc

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1208.250

-23.2(-1.884%)1D

Overview
Forecast
Valuation
Earnings

NFLX Relative Valuation

NFLX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NFLX is overvalued; if below, it's undervalued.

Historical Valuation

Netflix Inc (NFLX) is now in the Fair zone, suggesting that its current forward PE ratio of 41.59 is considered Fairly compared with the five-year average of 37.73. The fair price of Netflix Inc (NFLX) is between 831.13 to 1370.93 according to relative valuation methord.

Relative Value

Fair Zone

831.13-1370.93

Current Price：1208.25

Fair

41.59

Trailing

Forward

34.10

EV/EBITDA

Netflix Inc. (NFLX) has a current EV/EBITDA of 34.10. The 5-year average EV/EBITDA is 28.25. The thresholds are as follows: Strongly Undervalued below 13.02, Undervalued between 13.02 and 20.63, Fairly Valued between 35.86 and 20.63, Overvalued between 35.86 and 43.48, and Strongly Overvalued above 43.48. The current Forward EV/EBITDA of 34.10 falls within the Historic Trend Line -Fairly Valued range.

35.40

EV/EBIT

Netflix Inc. (NFLX) has a current EV/EBIT of 35.40. The 5-year average EV/EBIT is 30.78. The thresholds are as follows: Strongly Undervalued below 14.24, Undervalued between 14.24 and 22.51, Fairly Valued between 39.06 and 22.51, Overvalued between 39.06 and 47.33, and Strongly Overvalued above 47.33. The current Forward EV/EBIT of 35.40 falls within the Historic Trend Line -Fairly Valued range.

10.88

Netflix Inc. (NFLX) has a current PS of 10.88. The 5-year average PS is 6.60. The thresholds are as follows: Strongly Undervalued below 2.16, Undervalued between 2.16 and 4.38, Fairly Valued between 8.82 and 4.38, Overvalued between 8.82 and 11.04, and Strongly Overvalued above 11.04. The current Forward PS of 10.88 falls within the Overvalued range.

56.67

P/OCF

Netflix Inc. (NFLX) has a current P/OCF of 56.67. The 5-year average P/OCF is 149.95. The thresholds are as follows: Strongly Undervalued below -301.80, Undervalued between -301.80 and -75.92, Fairly Valued between 375.83 and -75.92, Overvalued between 375.83 and 601.70, and Strongly Overvalued above 601.70. The current Forward P/OCF of 56.67 falls within the Historic Trend Line -Fairly Valued range.

51.93

P/FCF

Netflix Inc. (NFLX) has a current P/FCF of 51.93. The 5-year average P/FCF is 154.13. The thresholds are as follows: Strongly Undervalued below -1920.25, Undervalued between -1920.25 and -883.06, Fairly Valued between 1191.32 and -883.06, Overvalued between 1191.32 and 2228.50, and Strongly Overvalued above 2228.50. The current Forward P/FCF of 51.93 falls within the Historic Trend Line -Fairly Valued range.

Netflix Inc (NFLX) has a current Price-to-Book (P/B) ratio of 20.58. Compared to its 3-year average P/B ratio of 11.79 , the current P/B ratio is approximately 74.56% higher. Relative to its 5-year average P/B ratio of 13.35, the current P/B ratio is about 54.13% higher. Netflix Inc (NFLX) has a Forward Free Cash Flow (FCF) yield of approximately 1.62%. Compared to its 3-year average FCF yield of 1.92%, the current FCF yield is approximately -15.42% lower. Relative to its 5-year average FCF yield of 1.28% , the current FCF yield is about 26.74% lower.

20.58

P/B

Median3y

11.79

Median5y

13.35

1.62

FCF Yield

Median3y

1.92

Median5y

1.28

Competitors Valuation Multiple

The average P/S ratio for NFLX's competitors is 7.36, providing a benchmark for relative valuation. Netflix Inc Corp (NFLX) exhibits a P/S ratio of 10.88, which is 47.68% above the industry average. Given its robust revenue growth of 15.90%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Tencent Music Entertainment Group

Spotify Technology SA

Performance Decomposition

Market capitalization of NFLX increased by 72.27% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 39.39 to 51.50.

The secondary factor is the Margin Expansion, contributed 25.60%to the performance.

Overall, the performance of NFLX in the past 1 year is driven by P/E Change. Which is more unsustainable.

15.90%

9.56B → 11.08B

Revenue Growth

25.60%

22.46 → 28.21

Margin Expansion

30.77%

39.39 → 51.50

P/E Change

72.27%