Netflix Inc.

Netflix Inc.

NFLX

Market Cap$452.82B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Netflix Inc.Netflix Inc.52-35%11.40.7

Earnings Call Q4 2024

January 21, 2025 - AI Summary

Subscriber Growth and Engagement: Netflix reported strong engagement and subscriber growth, with 19 million net additions in Q4 2024. The growth was broad-based across content categories and not driven by any single title, indicating a successful portfolio strategy. Engagement remains a strategic priority, with the average member watching about two hours a day, and plans to further enhance the streaming offerings to attract younger audiences who may prefer short-form content.
Cash Content Spending: Netflix plans to increase cash content spending from $17 billion in 2024 to around $18 billion in 2025, reflecting ongoing investment in original programming, live events, and regional content across its global footprint. This investment is necessary as Netflix only captures about 6% of the estimated global revenue opportunity, highlighting significant room for growth.
Margin Guidance: The company raised its operating margin guidance for 2025 to 12%-14%, anticipating high single-digit expense growth despite continued investment in key areas like product development, ad sales, and marketing. Content amortization growth is expected to be high single-digit as well, supporting margins due to consistent revenue growth.

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$992.73

Target Price by Analysts

4.1% downsideNetflix Target Price DetailsTarget Price
$194.54

Current Fair Value

81.2% downside

Overvalued by 81.2% based on the discounted cash flow analysis.

Share Statistics

Market cap$452.82 Billion
Enterprise Value$462.12 Billion
Dividend Yield$0 (0%)
Earnings per Share$20.28
Beta1.25
Outstanding Shares427,716,000

Return

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

Valuation & Multiples

P/E Ratio51.97
PEG52.37
Price to Sales11.38
Price to Book Ratio18.17
Enterprise Value to Revenue11.86
Enterprise Value to EBIT45.92
Enterprise Value to Net Income53
Total Debt to Enterprise0.04
Debt to Equity0.69

Revenue Sources

No data

Insider Trades

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...