Netflix Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 NFCD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NFCD (€553.2) is trading below our estimate of fair value (€602.31)

Significantly Below Fair Value: NFCD is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NFCD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.6x
Enterprise Value/EBITDA32.4x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NFCD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average65.9x
DIS Walt Disney
114.1x32.7%US$193.3b
WPP WPP
80.2x27.2%UK£8.9b
UMG Universal Music Group
42.3x13.0%€53.2b
INF Informa
26.8x12.2%UK£11.2b
NFCD Netflix
40.6x16.3%€257.2b

Price-To-Earnings vs Peers: NFCD is good value based on its Price-To-Earnings Ratio (40.6x) compared to the peer average (53.5x).


Price to Earnings Ratio vs Industry

How does NFCD's PE Ratio compare vs other companies in the European Entertainment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a31.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a31.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NFCD is expensive based on its Price-To-Earnings Ratio (40.6x) compared to the European Entertainment industry average (18.7x).


Price to Earnings Ratio vs Fair Ratio

What is NFCD'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.

NFCD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.6x
Fair PE Ratio45.6x

Price-To-Earnings vs Fair Ratio: NFCD is good value based on its Price-To-Earnings Ratio (40.6x) compared to the estimated Fair Price-To-Earnings Ratio (45.6x).


Analyst Price Targets

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

The above table shows the analyst NFCD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€553.20
€593.17
+7.2%
12.0%€710.38€408.58n/a42
May ’25€520.10
€599.49
+15.3%
12.0%€716.65€412.19n/a43
Apr ’25€569.20
€564.69
-0.8%
12.9%€688.94€395.68n/a41
Mar ’25€552.10
€535.74
-3.0%
12.7%€682.87€309.14n/a42
Feb ’25€515.90
€523.93
+1.6%
12.4%€645.61€308.97n/a42
Jan ’25€444.85
€425.94
-4.3%
12.4%€542.10€302.67n/a39
Dec ’24€434.55
€427.97
-1.5%
12.6%€551.70€308.03n/a39
Nov ’24€384.45
€430.06
+11.9%
12.9%€562.68€314.16n/a39
Oct ’24€356.70
€440.01
+23.4%
14.7%€568.08€307.71n/a37
Sep ’24€397.50
€421.01
+5.9%
15.3%€551.10€269.12n/a38
Aug ’24€399.20
€416.00
+4.2%
16.0%€540.84€264.11n/a36
Jul ’24n/a
€368.34
0%
18.3%€492.25€211.62n/a37
Jun ’24n/a
€342.92
0%
16.1%€436.82€199.82n/a36
May ’24n/a
€328.11
0%
15.6%€398.42€194.68€520.1037
Apr ’24n/a
€336.81
0%
16.3%€414.52€202.55€569.2037
Mar ’24n/a
€332.86
0%
16.4%€410.12€200.40€552.1037
Feb ’24n/a
€328.60
0%
16.2%€405.64€198.21€515.9037
Jan ’24n/a
€285.90
0%
17.9%€381.83€188.56€444.8536
Dec ’23n/a
€284.09
0%
18.1%€363.19€156.90€434.5536
Nov ’23n/a
€284.26
0%
19.3%€371.96€160.69€384.4536
Oct ’23n/a
€256.54
0%
22.3%€409.85€161.27€356.7036
Sep ’23n/a
€237.96
0%
22.3%€392.34€154.38€397.5036
Aug ’23n/a
€237.00
0%
22.4%€391.66€154.11€399.2036
Jul ’23n/a
€283.71
0%
34.5%€642.38€143.18n/a37
Jun ’23n/a
€300.58
0%
27.7%€631.68€206.49n/a36
May ’23n/a
€310.51
0%
28.1%€621.25€216.93n/a36

Analyst Forecast: Target price is less than 20% higher than the current share price.


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