DCF Tool

NFLX

NetFlix Inc – Internet Publishing and Broadcasting and Web Search Portals
Netflix is the world's leading streaming entertainment service with over 195 million paid memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.
Analysis Results
Intrinsic Value $5,071.66
Latest Price $179.95
Relative Value 96% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 55.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 55.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 42.2 38.4
2023 65.6 54.3
2024 102 76.8
2025 159 109
2026 247 154
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3190 billion. This corresponds to a present value of 1810 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 432 billion. Adding in the terminal value gives a total present value of 2240 billion.

There are presently 442.0 million outstanding shares, so the intrinsic value per share is 5071.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 16,139,650,000
Current Cash 12,055,608,000
Current Liabilities 16,977,932,000
Current Debt 1,399,646,000
Non-Cash Working Capital (NCWC) -11,494,244,000
Change in NCWC -5,744,367,000
EBIT 12,389,018,000
Tax Provision 1,447,750,000
Depreciation and Amortization 24,877,558,000
Capital Expenditure -1,049,170,000
Unlevered Free Cash Flow 28,937,432,452
Current Assets 9,761,580,000
Current Cash 8,205,550,000
Current Liabilities 7,805,785,000
Current Debt 499,878,000
Non-Cash Working Capital (NCWC) -5,749,877,000
Change in NCWC -54,248,000
EBIT 4,585,289,000
Tax Provision 437,954,000
Depreciation and Amortization 10,922,622,000
Capital Expenditure -497,923,000
Unlevered Free Cash Flow 14,328,066,789
Current Assets 6,178,504,000
Current Cash 5,018,437,000
Current Liabilities 6,855,696,000
Current Debt 0
Non-Cash Working Capital (NCWC) -5,695,629,000
Change in NCWC -5,107,961,000
EBIT 2,604,254,000
Tax Provision 195,315,000
Depreciation and Amortization 9,319,826,000
Capital Expenditure -253,035,000
Unlevered Free Cash Flow 6,316,433,712
Current Assets 9,694,135,000
Current Cash 3,794,483,000
Current Liabilities 6,487,320,000
Current Debt 0
Non-Cash Working Capital (NCWC) -587,668,000
Change in NCWC 31,465,000
EBIT 1,605,226,000
Tax Provision 15,216,000
Depreciation and Amortization 7,656,457,000
Capital Expenditure -212,532,000
Unlevered Free Cash Flow 9,060,700,830
Current Assets 7,669,974,000
Current Cash 2,822,795,000
Current Liabilities 5,466,312,000
Current Debt 0
Non-Cash Working Capital (NCWC) -619,133,000
Change in NCWC -18,985,000
EBIT 838,679,000
Tax Provision -73,608,000
Depreciation and Amortization 6,330,385,000
Capital Expenditure -227,022,000
Unlevered Free Cash Flow 6,923,057,000
Current Assets 5,720,291,000
Current Cash 1,733,782,000
Current Liabilities 4,586,657,000
Current Debt 0
Non-Cash Working Capital (NCWC) -600,148,000
Change in NCWC -191,649,000
EBIT 379,793,000
Tax Provision 73,829,000
Depreciation and Amortization 4,924,978,000
Capital Expenditure -184,830,000
Unlevered Free Cash Flow 4,820,656,744
Current Assets 5,431,840,000
Current Cash 2,310,715,000
Current Liabilities 3,529,624,000
Current Debt 0
Non-Cash Working Capital (NCWC) -408,499,000
Change in NCWC -77,318,000
EBIT 305,826,000
Tax Provision 19,244,000
Depreciation and Amortization 3,547,045,000
Capital Expenditure -169,206,000
Unlevered Free Cash Flow 3,564,867,523
Current Assets 3,940,469,000
Current Cash 1,608,496,000
Current Liabilities 2,663,154,000
Current Debt 0
Non-Cash Working Capital (NCWC) -331,181,000
Change in NCWC -35,336,000
EBIT 402,648,000
Tax Provision 82,570,000
Depreciation and Amortization 2,781,798,000
Capital Expenditure -144,516,000
Unlevered Free Cash Flow 2,909,432,021
Current Assets 3,058,763,000
Current Cash 1,200,405,000
Current Liabilities 2,154,203,000
Current Debt 0
Non-Cash Working Capital (NCWC) -295,845,000
Change in NCWC -112,632,000
EBIT 228,347,000
Tax Provision 58,671,000
Depreciation and Amortization 2,241,680,000
Capital Expenditure -120,070,000
Unlevered Free Cash Flow 2,159,011,832
Current Assets 2,240,791,000
Current Cash 748,078,000
Current Liabilities 1,675,926,000
Current Debt 0
Non-Cash Working Capital (NCWC) -183,213,000
Change in NCWC 6,477,000
EBIT 49,992,000
Tax Provision 13,328,000
Depreciation and Amortization 1,702,083,000
Capital Expenditure -41,457,000
Unlevered Free Cash Flow 1,695,234,981

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