Netflix, Inc. (NFLX) Discounted Future Market Cap - Discounting Cash Flows
NFLX
Netflix, Inc.
NFLX (NASDAQ)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Future Market Cap

This model estimates the intrinsic value of a common share by projecting the Future Market Capitalization using the estimated PE Ratio and then discounting it to the Present using an Annual Required Rate of Return.

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

Pe Ratio

Price to Earnings (PE) Ratio

Estimated Price to Earnings (PE) Ratio at the end of the projection period.

Future Market Cap = PE Ratio * Projected Net Income

Revenue Growth Rate

Revenue Growth Rate

The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.

Net Income Margin

Net Income Margin

Net Income expressed as a percentage of Revenue.

Historical Years

Historical Years

The number of historical years used to calculate averages for historical data.

Projection Years

Projection Years

The number of years for projecting the analysis into the future.

Results

Present Value 865 USD
Estimated net income 10.5 Bil. USD
Estimated market capitalization 629.3 Bil. USD
Market capitalization discounted to present 369.6 Bil. USD
Shares Outstanding 427.3 Mil.
Earnings Per Share (EPS) 21.64 USD
Market Price 1.3 Thou. USD
Price to Earnings (PE) Ratio 59.62

Historical and forecasted data

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Revenue 39,001 40,140 42,576 51,210 61,595 74,087 89,112
Revenue Growth Rate 15.65% 2.92% 9.16% 20.28% 20.28% 20.28% 20.28%
Net Income 8,712 9,270 5,015 6,033 7,256 8,727 10,497

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 23,857 40,140 39,001 33,723 31,616 29,698 24,996 20,156 15,794 11,693 8,831 6,780
Cost of Revenue 14,050 21,325 21,038 19,715 19,168 17,333 15,276 12,440 9,968 7,660 6,030 4,591
Gross Profit 9,808 18,815 17,963 14,008 12,447 12,365 9,720 7,716 5,827 4,033 2,801 2,188
Gross Margin 38.91% 46.87% 46.06% 41.54% 39.37% 41.64% 38.89% 38.28% 36.89% 34.49% 31.72% 32.27%
Operating Income 4,602 11,099 10,418 6,954 5,633 6,195 4,585 2,604 1,605 838.7 379.8 305.8
Operating Margin 15.55% 27.65% 26.71% 20.62% 17.82% 20.86% 18.34% 12.92% 10.16% 7.17% 4.3% 4.51%
Net Income 3,610 9,270 8,712 5,408 4,492 5,116 2,761 1,867 1,211 558.9 186.7 122.6
Net Margin 11.78% 23.09% 22.34% 16.04% 14.21% 17.23% 11.05% 9.26% 7.67% 4.78% 2.11% 1.81%

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 23,857 40,140 39,001 33,723 31,616 29,698 24,996 20,156 15,794 11,693 8,831 6,780
Revenue Growth Rate 20.28% 2.92% 15.65% 6.67% 6.46% 18.81% 24.01% 27.62% 35.08% 32.41% 30.26% 23.16%
Net Income 3,610 9,270 8,712 5,408 4,492 5,116 2,761 1,867 1,211 558.9 186.7 122.6
Net Margin 11.78% 23.09% 22.34% 16.04% 14.21% 17.23% 11.05% 9.26% 7.67% 4.78% 2.11% 1.81%
Net Income Growth Rate 52.48% 6.41% 61.09% 20.39% -12.2% 85.28% 47.91% 54.13% 116.7% 199.4% 52.22% -54.03%
Stockholders Equity 12,578 24,028 24,744 20,588 20,777 15,849 11,065 7,582 5,239 3,582 2,680 2,223
Equity Growth Rate 27.41% -2.89% 20.18% -0.91% 31.09% 43.23% 45.94% 44.73% 46.25% 33.67% 20.53% 19.69%
Return on Invested Capital (ROIC) 14.51% 27.69% 25.97% 18.5% 13.53% 18.05% 17.01% 10.67% 10.1% 9.01% 3.61% 5.44%
After-tax Operating Income 4,049 9,738 9,107 6,060 4,807 5,427 3,958 2,358 1,585 965.9 272.2 264.3
Income Tax Rate 10.53% 12.26% 12.58% 12.85% 14.67% 12.39% 13.69% 9.47% 1.24% -15.17% 28.34% 13.56%
Invested Capital 22,978 35,169 35,070 32,754 35,517 30,068 23,269 22,102 15,693 10,724 7,532 4,864
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Discounting Cash Flows

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