Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 11.95%, higher than industry average of 9.07%.

Growth Trajectory

Profitability

In the growth phase company makes 26.50% profit on every dollar of sales, higher than industry average of 9.24%.

Profitability Trajectory

Risk Profile

Investors expect at least 8.91% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
175.43B USD
Equity Value
169.36B USD
FCF Yield
25.11%
Average ROIC
33.60%
Cost of Capital
8.87%
P/E Ratio
49.58x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues41.69B USD39B USD
Operating Income or EBIT12.45B USD10.68B USD
Interest Expense765.95M USD718.73M USD
Book Value Of Equity24.95B USD24.74B USD
Book Value Of Debt14.45B USD15.58B USD
Cash and Marketable Securities8.39B USD9.58B USD
Number of Shares Outstanding424.93M--
Minority interests0 USD0 USD
Current Stock Price1263.80 USD--
Effective Tax Rate13.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-2.16%
6.90%Company
vs
9.06%Industry
Below Industry
Operating Margin
+20.62%
29.85%Company
vs
9.23%Industry
Above Industry
Netflix, Inc. demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 56% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 97.79B USD Add
Present Value (Cash Flow Over Next 10 Years) 77.63B USD Add
Value of Operating Assets 175.43B USD Sub-total
Debt 14.45B USD Subtract
Minority Interests — Subtract
Cash 8.39B USD Add
Value of Equity 169.36B USD Sub-total
Number of Shares 424.93M shares Divisor
Estimated Value per Share (Fair Value) 398.58 USD Total
Current Market Price 1.26K USD Reference

Financial Projections

Total FCF Present Value
77.63B USD
Avg Revenue Growth
8.58%
Avg Operating Margin
25.75%
Avg ROIC
33.60%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue47.09B USD52.72B USD59.02B USD66.07B USD73.96B USD81.71B USD89.07B USD95.78B USD101.59B USD106.27B USD111.16B USD
Growth Rate 12.96% 11.94% 11.94% 11.94% 11.94% 10.47% 9.00% 7.53% 6.06% 4.59% 4.59%
PROFITABILITY
Operating Income14.06B USD14.56B USD15.63B USD16.76B USD17.94B USD19.82B USD21.60B USD23.23B USD24.64B USD25.78B USD26.96B USD
Operating Margin 29.85% 27.61% 26.49% 25.37% 24.25% 24.25% 24.25% 24.25% 24.25% 24.25% 24.25%
EBIT (1-tax)12.23B USD12.66B USD13.60B USD14.58B USD15.61B USD16.77B USD17.76B USD18.54B USD19.07B USD19.33B USD20.22B USD
CASH FLOW
Reinvestment2.28B USD2.56B USD2.86B USD3.21B USD3.15B USD5.23B USD4.77B USD4.13B USD3.32B USD3.47B USD10.53B USD
Free Cash Flow9.94B USD10.10B USD10.73B USD11.37B USD12.45B USD11.53B USD12.98B USD14.41B USD15.75B USD15.86B USD9.68B USD
Terminal Value--------------------229.05B USD
Present Value9.13B USD8.52B USD8.31B USD8.08B USD8.13B USD6.91B USD7.15B USD7.28B USD7.32B USD6.77B USD—
EFFICIENCY
ROIC 39.44% 38.03% 37.93% 37.66% 37.21% 37.18% 35.29% 33.65% 32.20% 30.91% 8.83%
Cost of Capital 8.90% 8.90% 8.90% 8.90% 8.90% 8.89% 8.87% 8.86% 8.84% 8.83% 8.83%
Sales/Capital 2.45x 2.45x 2.45x 2.45x 2.45x 1.40x 1.40x 1.40x 1.40x 1.40x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)