| Company name | Netflix, Inc. |
| Stock ticker | NFLX |
| Live stock price | [stckqut]NFLX[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Poor |
| P/E growth | Good |
| EBIT growth | Poor |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $498.06 |
| Target stock price (averages with growth) | $576.14 |
| Target stock price (averages with no growth) | $292.24 |
| Target stock price (manual assumptions) | $334.39 |
The following company description is from Google Finance: http://www.google.com/finance?q=nflx
Netflix, Inc. is an Internet television network with more than 33 million members in over 40 countries. In the United States, the Company’s subscribers can receive standard definition digital versatile disc (DVDs), and their high definition successor, Blu-ray discs (collectively DVD), delivered quickly to their homes. The Company operates in three segments: Domestic streaming, International streaming and Domestic DVD. Domestic and International streaming segments derive revenues from monthly subscription services consisting solely of streaming content. The Domestic DVD segment derives revenues from monthly subscription services consisting solely of DVD-by-mail.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Netflix, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $322.06
Growth: 0.15
Current EPS (TTM): $1.19
P/E: 225
Future EPS Calc: $2.39
Future Stock Price Calc: $538.54
Target stock price: $334.39
I hope that this makes you a better investor. [/s2If]