Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

Enterprise Value to EBITDA (EV/EBITDA) 

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Netflix Inc., EBITDA calculation

US$ in thousands

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income 5,116,228  2,761,395  1,866,916  1,211,242  558,929 
Add: Income tax expense 723,875  437,954  195,315  15,216  (73,608)
Earnings before tax (EBT) 5,840,103  3,199,349  2,062,231  1,226,458  485,321 
Add: Interest expense 765,620  767,499  626,023  420,493  238,204 
Earnings before interest and tax (EBIT) 6,605,723  3,966,848  2,688,254  1,646,951  723,525 
Add: Amortization of content assets 12,230,367  10,806,912  9,216,247  7,532,088  6,197,817 
Add: Depreciation and amortization of property, equipment and intangibles 208,412  115,710  103,579  83,157  71,911 
Earnings before interest, tax, depreciation and amortization (EBITDA) 19,044,502  14,889,470  12,008,080  9,262,196  6,993,253 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Netflix Inc. EBITDA increased from 2019 to 2020 and from 2020 to 2021.

Enterprise Value to EBITDA Ratio, Current

Netflix Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in thousands)
Enterprise value (EV) 94,025,915 
Earnings before interest, tax, depreciation and amortization (EBITDA) 19,044,502 
Valuation Ratio
EV/EBITDA 4.94
Benchmarks
EV/EBITDA, Competitors1
Alphabet Inc. 13.64
Charter Communications Inc. 8.82
Comcast Corp. 7.52
Meta Platforms Inc. 9.06
Twitter Inc. 146.78
Walt Disney Co. 26.15
EV/EBITDA, Sector
Media & Entertainment 11.18
EV/EBITDA, Industry
Communication Services 9.47

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Netflix Inc., historical EV/EBITDA calculation, comparison to benchmarks

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 181,045,624  246,646,811  160,321,713  150,162,854  127,174,030 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 19,044,502  14,889,470  12,008,080  9,262,196  6,993,253 
Valuation Ratio
EV/EBITDA3 9.51 16.57 13.35 16.21 18.19
Benchmarks
EV/EBITDA, Competitors4
Alphabet Inc. 17.70 20.57 17.08 15.69 19.10
Charter Communications Inc. 9.97 11.53 11.86 9.96 11.59
Comcast Corp. 8.45 10.36 8.66 9.31 9.19
Meta Platforms Inc. 10.85 17.31 17.76 14.64 21.98
Twitter Inc. 145.33 89.29 26.38 20.47 54.02
Walt Disney Co. 34.53 60.13 16.10 10.27 10.56
EV/EBITDA, Sector
Media & Entertainment 14.21 18.09 14.60 12.99 15.42
EV/EBITDA, Industry
Communication Services 11.49 14.44 11.54 10.32 11.88

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 181,045,624 ÷ 19,044,502 = 9.51

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Netflix Inc. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.