Price to FCFE (P/FCFE)
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Free Cash Flow to Equity (FCFE)
Netflix Inc., FCFE calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals significant fluctuations in cash flow metrics over the five-year period ending December 31, 2024.
- Net Cash Provided by Operating Activities
- This figure displays variability, with a notable decline from $2,427,077 thousand in 2020 to $392,610 thousand in 2021. Subsequently, it recovers to $2,026,257 thousand in 2022 and then experiences a substantial increase in the following years, reaching $7,274,301 thousand in 2023 and slightly higher at $7,361,364 thousand in 2024. This trend suggests a temporary setback in 2021 followed by strong operational cash generation in the later years.
- Free Cash Flow to Equity (FCFE)
- The FCFE pattern mirrors some characteristics of operating cash flow but with greater volatility. Beginning at $2,931,059 thousand in 2020, FCFE turns negative in 2021 with -$631,975 thousand, indicating significant equity cash outflows or increased financial obligations during that year. Afterwards, it rebounds to $918,528 thousand in 2022 and grows substantially to $6,925,749 thousand in 2023 and $8,316,286 thousand in 2024. The increase in the most recent years reflects improved capacity to generate free cash for equity holders, correlating with the enhanced operating cash flow figures.
Overall, the data indicates a period of constrained cash flow in 2021, followed by strong recovery and growth in both operating cash generation and free cash flow to equity through 2023 and 2024. This suggests improving financial health and growing cash availability for equity investors after a challenging period.
Price to FCFE Ratio, Current
Netflix Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | |
| Comcast Corp. | |
| Meta Platforms Inc. | |
| Take-Two Interactive Software Inc. | |
| Walt Disney Co. | |
| P/FCFE, Sector | |
| Media & Entertainment | |
| P/FCFE, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Netflix Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| P/FCFE, Sector | ||||||
| Media & Entertainment | ||||||
| P/FCFE, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Netflix Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibits significant volatility over the observed periods. Starting at $538.60 at the end of 2020, it decreased to $386.70 by the end of 2021 and further declined slightly to $364.87 in 2022. However, in 2023, there was a notable recovery with the share price increasing to $570.42, followed by a substantial jump to $971.89 in 2024. This pattern indicates an initial depreciation phase, succeeded by a strong appreciation in the latter years.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share shows a marked fluctuation and overall upward trend after an initial decline. In 2020, FCFE per share was positive at $6.62 but turned negative to -$1.42 in 2021, indicating cash flow challenges during that year. This was followed by a recovery to $2.06 in 2022. The subsequent years reflect significant improvements in cash flow generation, with FCFE per share reaching $16.00 in 2023 and further increasing to $19.44 in 2024, suggesting enhanced financial performance and cash-generating capability.
- Price to FCFE Ratio (P/FCFE)
- The Price to FCFE ratio shows considerable variation and some data gaps. The ratio was extremely high at 81.38 in 2020, reflecting relatively expensive valuation against free cash flow. No ratio value is reported for 2021, likely due to the negative FCFE, which makes this ratio not meaningful. In 2022, the ratio surged to 176.91, indicating an increased valuation premium despite a lower free cash flow per share. This was followed by a sharp decrease to 35.64 in 2023, suggesting a more balanced valuation relative to cash generation, and then a moderate increase to 49.99 in 2024. The fluctuations imply changing market perceptions of value and evolving financial dynamics.
- Overall Insights
- The data portrays a company experiencing financial variability with phases of stress followed by strong recovery. The share price response aligns with improvements in free cash flow per share, especially notable after 2022. The elevated P/FCFE ratios in 2020 and 2022 may signify market optimism or speculative valuation despite cash flow inconsistencies, whereas the lower ratios in 2023 suggest a reset to a more sustainable valuation framework. The improvement in FCFE per share in the last two years is a positive indicator of financial health and operational efficiency.