stock.name

Netflix Inc.

NFLX

Market Cap$259.98B
Close$

Compare Netflix

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Netflix Inc.Netflix Inc.48.10%26%7.70.7
marketMarket Avg49.61.28%30%6.11.1
TechnologyTechnology Avg19.80.64%48%10.60.9

Earnings Call Q4 2023

January 23, 2024 - AI Summary

Netflix announced a new partnership with WWE to bring WWE Raw programming to its members globally. This move aligns with their strategy of expanding into live event programming and growing their sports entertainment offerings.
The company expects healthy double-digit FX-neutral revenue growth in 2024, driven by continued member growth, the full-year impact of 2023 net additions, and the scaling of their ads business. However, ads won't be a primary driver of growth in 2024.
Netflix's ad-supported subscriber base is expected to grow as they leverage partner channels and bundle the ads plan into lower-priced offerings. They believe there is room for multiple players in the advertising market and are focused on playing to their strengths, such as having an engaged audience and offering culture-defining content.
The gaming portfolio has seen significant expansion, with games like Grand Theft Auto Trilogy performing well. Engagement in gaming has tripled over the past year, and Netflix plans to continue investing in this area. They will focus on recognizable games and licensing existing popular titles or those based on well-known IP.
Pricing changes are expected to resume now that the majority of password sharing implementation is complete. Netflix will assess when additional value has been delivered to members before asking them to pay more. They aim to sustain healthy revenue growth, increase profit margins, and reinvest a portion of profits back into the business.
Netflix remains focused on its core areas of movies, television, and games, where they see significant room for growth. They believe there is still much potential to capture consumer spending and TV time within these categories. They do not anticipate a shift towards other forms of media consumption at this time. Overall, the earnings call highlighted Netflix's continued investment in content, expansion into live event programming and gaming, and the growth potential of their ads business. They remain confident in their ability to deliver value to subscribers and drive revenue growth while maintaining disciplined capital allocation practices.
$558.25

Target Price by Analysts

4.3% downsideNetflix Target Price DetailsTarget Price
$588.40

Current Fair Value

0.8% upside

Undervalued by 0.8% based on the discounted cash flow analysis.

Share Statistics

Market cap$259.98 Billion
Enterprise Value$267.39 Billion
Dividend Yield$0.0 (0.0%)
Earnings per Share$12.03
Beta1.25
Outstanding Shares441,795,008
Avg 30 Day Volume4,809,752

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio48.07
PEG3.01
Price to Sales7.68
Price to Book Ratio12.69
Enterprise Value to Revenue7.93
Enterprise Value to EBIT38.45
Enterprise Value to Net Income49
Total Debt to Enterprise0.05
Debt to Equity0.71

Revenue Sources

No data

ESG Score

No data

About NetFlix Inc

CEO: Reed Hastings

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 wa...