|Company name||Netflix, Inc.|
|Live stock price||[stckqut]NFLX[/stckqut]|
|P/E compared to competitors||Good|
|Confident Investor Rating||Good|
|Target stock price (TWCA growth scenario)||$147.99|
|Target stock price (averages with growth)||$163.68|
|Target stock price (averages with no growth)||$74.46|
|Target stock price (manual assumptions)||$148.32|
The following company description is from Google Finance: http://www.google.com/finance?q=nflx
Netflix, Inc. (Netflix) is a provider of Internet television network. The Company’s members can watch original series, documentaries and feature films in Internet-connected screen. The Company has three operating segments: Domestic streaming, International streaming and Domestic DVD. The Domestic and International streaming segments derive revenues from monthly membership fees for services consisting of streaming content. The Domestic DVD segment derives revenues from monthly membership fees for services consisting of digital video disc (DVD)-by-mail. The Company’s members can watch television shows and movies directly on their televisions, computers and mobile devices. The Company offers streaming service both domestically and internationally. Its members can play, pause and resume watching, without commercials or commitments. Additionally, in the United States, the Company’s members can receive DVDs to their homes.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Netflix, Inc.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Netflix, Inc. calculated?
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.
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: $96.37
- Growth: 0.2
- Current EPS (TTM): $0.32
- P/E: 300
- Future EPS Calc: $0.79
- Future Stock Price Calc: $238.87
- Target stock price: $148.32
I hope that this makes you a Confident Investor.