Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel LibreOffice Calc

Current Valuation Ratios

Netflix Inc., current price multiples

Microsoft Excel LibreOffice Calc
Netflix Inc. Alphabet Inc. Charter Communications Inc. Comcast Corp. Meta Platforms Inc. Twitter Inc. Walt Disney Co. Media & Entertainment Communication Services
Selected Financial Data
Current share price (P) $180.34
No. shares of common stock outstanding 444,273,850
Growth rate (g) 26.33%
 
Earnings per share (EPS) $11.52
Next year expected EPS $14.55
Operating profit per share $13.94
Sales per share $66.85
Book value per share (BVPS) $35.67
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 15.66 18.35 17.28 13.63 12.46 92.75 17.37 16.00
Price to next year expected earnings 12.40 15.70 14.80 12.06 10.04 85.10 14.87 14.16
Price-earnings-growth (PEG) 0.59 1.09 1.03 1.04 0.52 10.32 1.03 1.23
Price to operating profit (P/OP) 12.93 17.72 7.64 9.27 10.49 61.58 14.81 13.05
Price to sales (P/S) 2.70 5.41 1.56 1.66 4.16 5.38 2.74 3.80 2.90
Price to book value (P/BV) 5.06 5.54 5.72 2.01 3.93 3.74 2.09 4.10 3.25

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

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, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 33.56 86.39 80.66 118.55 220.95
Price to operating profit (P/OP) 27.71 52.02 57.82 89.46 147.25
Price to sales (P/S) 5.78 9.54 7.47 9.09 10.56
Price to book value (P/BV) 10.83 21.56 19.86 27.41 34.48

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).

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. P/E ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
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. P/OP ratio decreased from 2019 to 2020 and from 2020 to 2021.
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. P/S ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Netflix Inc. P/BV ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 443,963,107 442,895,261 438,806,649 436,598,597 433,948,461
Selected Financial Data (US$)
Net income (in thousands) 5,116,228  2,761,395  1,866,916  1,211,242  558,929 
Earnings per share (EPS)2 11.52 6.23 4.25 2.77 1.29
Share price1, 3 386.70 538.60 343.16 328.90 284.59
Valuation Ratio
P/E ratio4 33.56 86.39 80.66 118.55 220.95
Benchmarks
P/E Ratio, Competitors5
Alphabet Inc. 25.74 34.65 28.96 25.92 59.34
Charter Communications Inc. 21.92 36.53 65.14 60.65 9.34
Comcast Corp. 16.01 22.37 15.39 14.11 8.70
Meta Platforms Inc. 16.44 25.89 32.31 21.51 35.20
Twitter Inc. 20.69 19.57
Walt Disney Co. 137.89 23.96 13.36 17.28
P/E Ratio, Sector
Media & Entertainment 24.16 37.46 28.65 22.86 26.98
P/E Ratio, Industry
Communication Services 21.28 37.52 24.76 19.89 17.66

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 5,116,228,000 ÷ 443,963,107 = 11.52

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 386.70 ÷ 11.52 = 33.56

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. P/E ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 443,963,107 442,895,261 438,806,649 436,598,597 433,948,461
Selected Financial Data (US$)
Operating income (in thousands) 6,194,509  4,585,289  2,604,254  1,605,226  838,679 
Operating profit per share2 13.95 10.35 5.93 3.68 1.93
Share price1, 3 386.70 538.60 343.16 328.90 284.59
Valuation Ratio
P/OP ratio4 27.71 52.02 57.82 89.46 147.25
Benchmarks
P/OP Ratio, Competitors5
Alphabet Inc. 24.86 33.85 29.05 30.27 28.74
Charter Communications Inc. 9.69 14.00 16.69 14.29 22.51
Comcast Corp. 10.89 13.47 9.51 8.71 10.98
Meta Platforms Inc. 13.84 23.10 24.90 19.10 27.76
Twitter Inc. 2,149.42 82.78 52.03 633.05
Walt Disney Co. 91.54 24.82 11.37 11.26
P/OP Ratio, Sector
Media & Entertainment 20.59 29.95 23.59 20.02 22.93
P/OP Ratio, Industry
Communication Services 17.35 25.33 17.95 16.15 17.44

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,194,509,000 ÷ 443,963,107 = 13.95

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 386.70 ÷ 13.95 = 27.71

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. P/OP ratio decreased from 2019 to 2020 and from 2020 to 2021.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 443,963,107 442,895,261 438,806,649 436,598,597 433,948,461
Selected Financial Data (US$)
Revenues (in thousands) 29,697,844  24,996,056  20,156,447  15,794,341  11,692,713 
Sales per share2 66.89 56.44 45.93 36.18 26.94
Share price1, 3 386.70 538.60 343.16 328.90 284.59
Valuation Ratio
P/S ratio4 5.78 9.54 7.47 9.09 10.56
Benchmarks
P/S Ratio, Competitors5
Alphabet Inc. 7.60 7.65 6.14 5.82 6.78
Charter Communications Inc. 1.97 2.45 2.37 1.71 2.22
Comcast Corp. 1.95 2.28 1.84 1.75 2.34
Meta Platforms Inc. 5.49 8.78 8.45 8.52 13.80
Twitter Inc. 5.71 15.42 8.77 7.75 10.04
Walt Disney Co. 4.08 4.13 3.81 2.83 2.81
P/S Ratio, Sector
Media & Entertainment 5.28 5.97 4.89 4.52 5.49
P/S Ratio, Industry
Communication Services 3.85 4.14 3.50 3.13 3.53

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 29,697,844,000 ÷ 443,963,107 = 66.89

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 386.70 ÷ 66.89 = 5.78

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. P/S ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 443,963,107 442,895,261 438,806,649 436,598,597 433,948,461
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 15,849,248  11,065,240  7,582,157  5,238,765  3,581,956 
Book value per share (BVPS)2 35.70 24.98 17.28 12.00 8.25
Share price1, 3 386.70 538.60 343.16 328.90 284.59
Valuation Ratio
P/BV ratio4 10.83 21.56 19.86 27.41 34.48
Benchmarks
P/BV Ratio, Competitors5
Alphabet Inc. 7.78 6.27 4.94 4.49 4.93
Charter Communications Inc. 7.26 4.94 3.46 2.06 2.36
Comcast Corp. 2.36 2.61 2.43 2.31 2.88
Meta Platforms Inc. 5.18 5.88 5.91 5.65 7.54
Twitter Inc. 3.97 7.19 3.48 3.47 4.86
Walt Disney Co. 3.11 3.23 2.98 3.45 3.76
P/BV Ratio, Sector
Media & Entertainment 5.70 5.41 4.50 4.29 4.96
P/BV Ratio, Industry
Communication Services 4.32 4.24 3.69 3.41 4.02

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 15,849,248,000 ÷ 443,963,107 = 35.70

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 386.70 ÷ 35.70 = 10.83

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 required rate of return and its actual rate of return. Netflix Inc. P/BV ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.