What Netflix (NFLX) Investors Need to Know

Netflix logged a 1.1% change during today's evening session, and is now trading at a price of $424.71 per share. On average, analysts give it a target price of $433.98.

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The large-cap company is based in the United States.

Make Sure to Consider the Following Before Buying Netflix:

  • Netflix has moved 58.0% over the last year.

  • NFLX has a forward P/E ratio of 28.8 based on its EPS guidance of 14.77.

  • Over the last 6 years, earnings per share (EPS) have been growing at a compounded average rate of 24.6%.

  • The company has a price to earnings growth (PEG) ratio of 1.53.

  • Its Price to Book (P/B) ratio is 8.41

Netflix Has Irregular Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023 6,055,145 378,513 5,676,632 250.73
2022 2,026,257 407,729 1,618,528 1326.39
2021 392,610 524,585 -131,975 -106.84
2020 2,427,077 497,923 1,929,154 161.43
2019 -2,887,322 253,035 -3,140,357 -10.02
2018 -2,680,479 173,946 -2,854,425

Netflix's free cash flows have a decent average of $516.26 Million over the last 6 years, but they are highly variable since their coefficient of variability is 213.6%. The compounded average growth rate over this period is 20.0%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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