Netflix Valuation
| NFLX Stock | USD 1,059 0.00 0.00% |
At this time, the firm appears to be overvalued. Netflix secures a last-minute Real Value of $1015.75 per share. The latest price of the firm is $1058.6. Our model forecasts the value of Netflix from analyzing the firm fundamentals such as Return On Equity of 0.38, current valuation of 458.82 B, and Profit Margin of 0.22 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Netflix's valuation include:
Price Book 18.3007 | Enterprise Value | Enterprise Value Ebitda 17.4359 | Price Sales 11.6106 | Forward PE 43.1034 |
Overvalued
Today
Please note that Netflix's price fluctuation is very steady at this time. Calculation of the real value of Netflix is based on 3 months time horizon. Increasing Netflix's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Netflix is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Netflix Stock. However, Netflix's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1058.6 | Real 1015.75 | Target 847.92 | Hype 1066.55 | Naive 1018.62 |
The intrinsic value of Netflix's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Netflix's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Netflix helps investors to forecast how Netflix stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Netflix more accurately as focusing exclusively on Netflix's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Netflix's intrinsic value based on its ongoing forecasts of Netflix's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Netflix's closest peers.
Netflix Cash |
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Netflix Valuation Trend
Analysing the historical paterns of Netflix's enterprise value and its market capitalization is a good way to estimate and gauge the value of Netflix over time and is usually enough for investors to make rational market timing decisions.
Netflix Total Value Analysis
Netflix is now expected to have valuation of 458.82 B with market capitalization of 452.82 B, debt of 15.58 B, and cash on hands of 5.15 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Netflix fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
458.82 B | 452.82 B | 15.58 B | 5.15 B |
Netflix Investor Information
About 86.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.65. Netflix recorded earning per share (EPS) of 19.8. The entity had not issued any dividends in recent years. The firm had 7:1 split on the 15th of July 2015. Based on the key measurements obtained from Netflix's financial statements, Netflix is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.Netflix Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Netflix has an asset utilization ratio of 72.72 percent. This suggests that the Company is making $0.73 for each dollar of assets. An increasing asset utilization means that Netflix is more efficient with each dollar of assets it utilizes for everyday operations.Netflix Ownership Allocation
Netflix maintains a total of 427.76 Million outstanding shares. The majority of Netflix outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Netflix to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Netflix. Please pay attention to any change in the institutional holdings of Netflix as this could imply that something significant has changed or is about to change at the company. On January 13, 2025, Representative James Comer of US Congress acquired under $15k worth of Netflix's common stock.Netflix Profitability Analysis
The company reported the previous year's revenue of 39 B. Net Income was 8.71 B with profit before overhead, payroll, taxes, and interest of 17.96 B.About Netflix Valuation
Our relative valuation model uses a comparative analysis of Netflix. We calculate exposure to Netflix's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Netflix's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 18 B | 18.9 B | |
| Pretax Profit Margin | 0.26 | 0.27 | |
| Operating Profit Margin | 0.27 | 0.28 | |
| Net Profit Margin | 0.22 | 0.23 | |
| Gross Profit Margin | 0.46 | 0.30 |
Netflix Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 439.3 M | |
| Quarterly Earnings Growth Y O Y | 1.018 | |
| Forward Price Earnings | 43.1034 |
Netflix Current Valuation Indicators
Valuation refers to the process of determining the present value of Netflix and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Netflix we look at many different elements of the entity such as Netflix's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Netflix, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Netflix's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Netflix's worth.Additional Tools for Netflix Stock Analysis
When running Netflix's price analysis, check to measure Netflix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Netflix is operating at the current time. Most of Netflix's value examination focuses on studying past and present price action to predict the probability of Netflix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Netflix's price. Additionally, you may evaluate how the addition of Netflix to your portfolios can decrease your overall portfolio volatility.