I think Netflix Inc ($NFLX) is a Possible Buy. It currently should be $527. Confident Investor Rating: Good

 

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 Good
P/E growth Good
EBITDA growth Good
Price growth Good
R&D growth Good
Income growth Good
Assets growth Good
Return on Assets growth Good
Income / Rev growth Good
TWCA Plus Good
Standard TWCA Good
Weighted ann. stock price increase Good

 

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $671.05
Target stock price (averages with growth) $304.85
Target stock price (averages with no growth) $300.81
Target stock price (manual assumptions) $527.54

 

The following company description is from Reuters: https://finance.yahoo.com/quote/nflx/profile?p=nflx

Netflix, Inc. provides subscription streaming entertainment service. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. The company has approximately 167 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Netflix Inc as long as the indicators that I describe in my book The Confident Investor are favorable.

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.
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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: $433.9
  • Growth: 0.2
  • Current EPS (TTM): $4.4
  • P/E: 77.5996689264447
  • Future EPS Calc: $10.94
  • Future Stock Price Calc: $849.6
  • Target stock price: $527.53

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I hope that this makes you a Confident Investor.

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