Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Netflix Inc. (NASDAQ:NFLX)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Netflix Inc., current price multiples

Microsoft Excel LibreOffice Calc
Netflix Inc. Charter Communications Inc. Comcast Corp. Walt Disney Co. Media Consumer Services
Selected Financial Data
Current share price (P) $488.24
No. shares of common stock outstanding 441,795,008
Growth rate (g) 15.67%
 
Earnings per share (EPS) $4.23
Next year expected EPS $4.89
Operating profit per share $5.89
Sales per share $45.62
Book value per share (BVPS) $17.16
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 115.54 71.51 15.31 20.28 27.46 43.35
Price to next year expected earnings 99.89 65.87 13.36 17.61 24.56 38.08
Price-earnings-growth (PEG) 7.37 8.35 1.05 1.34 2.33 3.14
Price to operating profit (P/OP) 82.83 18.32 9.46 21.01 18.56 27.87
Price to sales (P/S) 10.70 2.61 1.84 3.22 3.11 2.18
Price to book value (P/BV) 28.45 3.79 2.42 2.52 3.60 9.03

Based on: 10-K (filing date: 2020-01-29).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Netflix Inc., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 80.66 118.55 220.95 328.44 329.54
Price to operating profit (P/OP) 57.82 89.46 147.25 161.44 132.15
Price to sales (P/S) 7.47 9.09 10.56 6.94 5.96
Price to book value (P/BV) 19.86 27.41 34.48 22.88 18.18

Based on: 10-K (filing date: 2020-01-29), 10-K (filing date: 2019-01-29), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-27), 10-K (filing date: 2016-01-28).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Netflix Inc.’s P/E ratio decreased from 2017 to 2018 and from 2018 to 2019.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Netflix Inc.’s P/OP ratio decreased from 2017 to 2018 and from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Netflix Inc.’s P/S ratio decreased from 2017 to 2018 and from 2018 to 2019.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Netflix Inc.’s P/BV ratio decreased from 2017 to 2018 and from 2018 to 2019.

Price to Earnings (P/E)

Netflix Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 438,806,649 436,598,597 433,948,461 430,411,593 428,081,221
Selected Financial Data (US$)
Net income (in thousands) 1,866,916  1,211,242  558,929  186,678  122,641 
Earnings per share (EPS)2 4.25 2.77 1.29 0.43 0.29
Share price1, 3 343.16 328.90 284.59 142.45 94.41
Valuation Ratio
P/E ratio4 80.66 118.55 220.95 328.44 329.54
Benchmarks
P/E Ratio, Competitors5
Charter Communications Inc. 65.14 60.65 9.34 24.77
Comcast Corp. 15.39 14.11 8.70 20.56 17.78
Walt Disney Co. 23.96 13.36 17.28 16.65 23.41
P/E Ratio, Sector
Media 26.23 20.62 13.49 22.20 24.39
P/E Ratio, Industry
Consumer Services 32.56 29.96 23.68 25.70 27.64

Based on: 10-K (filing date: 2020-01-29), 10-K (filing date: 2019-01-29), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-27), 10-K (filing date: 2016-01-28).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 1,866,916,000 ÷ 438,806,649 = 4.25

3 Closing price as at the filing date of Netflix Inc.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 343.16 ÷ 4.25 = 80.66

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Netflix Inc.’s P/E ratio decreased from 2017 to 2018 and from 2018 to 2019.

Price to Operating Profit (P/OP)

Netflix Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 438,806,649 436,598,597 433,948,461 430,411,593 428,081,221
Selected Financial Data (US$)
Operating income (in thousands) 2,604,254  1,605,226  838,679  379,793  305,826 
Operating profit per share2 5.93 3.68 1.93 0.88 0.71
Share price1, 3 343.16 328.90 284.59 142.45 94.41
Valuation Ratio
P/OP ratio4 57.82 89.46 147.25 161.44 132.15
Benchmarks
P/OP Ratio, Competitors5
Charter Communications Inc. 16.69 14.29 22.51 35.52 16.26
Comcast Corp. 9.51 8.71 10.98 10.61 9.07
Walt Disney Co. 24.82 11.37 11.26 11.01 14.90
P/OP Ratio, Sector
Media 17.72 13.58 15.49 14.27 13.07
P/OP Ratio, Industry
Consumer Services 20.93 18.87 18.08 15.67 15.14

Based on: 10-K (filing date: 2020-01-29), 10-K (filing date: 2019-01-29), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-27), 10-K (filing date: 2016-01-28).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,604,254,000 ÷ 438,806,649 = 5.93

3 Closing price as at the filing date of Netflix Inc.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 343.16 ÷ 5.93 = 57.82

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Netflix Inc.’s P/OP ratio decreased from 2017 to 2018 and from 2018 to 2019.

Price to Sales (P/S)

Netflix Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 438,806,649 436,598,597 433,948,461 430,411,593 428,081,221
Selected Financial Data (US$)
Revenues (in thousands) 20,156,447  15,794,341  11,692,713  8,830,669  6,779,511 
Sales per share2 45.93 36.18 26.94 20.52 15.84
Share price1, 3 343.16 328.90 284.59 142.45 94.41
Valuation Ratio
P/S ratio4 7.47 9.09 10.56 6.94 5.96
Benchmarks
P/S Ratio, Competitors5
Charter Communications Inc. 2.37 1.71 2.22 3.01 1.86
Comcast Corp. 1.84 1.75 2.34 2.22 1.95
Walt Disney Co. 3.81 2.83 2.81 2.81 3.74
P/S Ratio, Sector
Media 2.97 2.59 2.95 2.78 2.79
P/S Ratio, Industry
Consumer Services 1.64 1.52 1.51 1.32 1.29

Based on: 10-K (filing date: 2020-01-29), 10-K (filing date: 2019-01-29), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-27), 10-K (filing date: 2016-01-28).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 20,156,447,000 ÷ 438,806,649 = 45.93

3 Closing price as at the filing date of Netflix Inc.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 343.16 ÷ 45.93 = 7.47

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Netflix Inc.’s P/S ratio decreased from 2017 to 2018 and from 2018 to 2019.

Price to Book Value (P/BV)

Netflix Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 438,806,649 436,598,597 433,948,461 430,411,593 428,081,221
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 7,582,157  5,238,765  3,581,956  2,679,800  2,223,426 
Book value per share (BVPS)2 17.28 12.00 8.25 6.23 5.19
Share price1, 3 343.16 328.90 284.59 142.45 94.41
Valuation Ratio
P/BV ratio4 19.86 27.41 34.48 22.88 18.18
Benchmarks
P/BV Ratio, Competitors5
Charter Communications Inc. 3.46 2.06 2.36 2.17
Comcast Corp. 2.43 2.31 2.88 3.31 2.78
Walt Disney Co. 2.98 3.45 3.76 3.61 4.41
P/BV Ratio, Sector
Media 3.44 3.41 3.73 3.45 4.04
P/BV Ratio, Industry
Consumer Services 6.78 6.39 6.46 5.50 5.54

Based on: 10-K (filing date: 2020-01-29), 10-K (filing date: 2019-01-29), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-27), 10-K (filing date: 2016-01-28).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 7,582,157,000 ÷ 438,806,649 = 17.28

3 Closing price as at the filing date of Netflix Inc.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 343.16 ÷ 17.28 = 19.86

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Netflix Inc.’s P/BV ratio decreased from 2017 to 2018 and from 2018 to 2019.