Netflix Valuation

Is NFLXD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NFLXD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NFLXD ($19.25) is trading above our estimate of fair value ($12.81)

Significantly Below Fair Value: NFLXD is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for NFLXD?

Key metric: As NFLXD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NFLXD. This is calculated by dividing NFLXD's market cap by their current earnings.
What is NFLXD's PE Ratio?
PE Ratio49.3x
EarningsUS$7.78b
Market CapUS$383.77b

Price to Earnings Ratio vs Peers

How does NFLXD's PE Ratio compare to its peers?

The above table shows the PE ratio for NFLXD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average68.9x
DIS Walt Disney
42.1x19.3%US$209.4b
SPOT Spotify Technology
131.5x29.6%US$96.0b
UMG Universal Music Group
26.7x6.5%€41.3b
FWON.K Formula One Group
75.3x20.0%US$20.7b
NFLXD Netflix
49.3x15.9%US$383.8b

Price-To-Earnings vs Peers: NFLXD is good value based on its Price-To-Earnings Ratio (49.3x) compared to the peer average (68.9x).


Price to Earnings Ratio vs Industry

How does NFLXD's PE Ratio compare vs other companies in the Global Entertainment Industry?

25 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NFLXD 49.3xIndustry Avg. 23.5xNo. of Companies46PE020406080100+
25 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NFLXD is expensive based on its Price-To-Earnings Ratio (49.3x) compared to the Global Entertainment industry average (23.3x).


Price to Earnings Ratio vs Fair Ratio

What is NFLXD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NFLXD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NFLXD's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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