Netflix Inc (NFLX:NASDAQ)

PROFILE

Netflix is the world’s leading internet entertainment service with 130 million paid memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.

FUNDAMENTALS

Earning growth past 5 quarters

Earning growth past 3 years
Profit Margin
Expected growth next 3 years
EPS expected for 2018
Forward P/E Ratio
PEG Ratio

142%, 173%, 60%, 467%, 207%

>35%
>4%

40-50%

2.7

60

1.5-2

  • Earning growth past 5 quarters

142%, 173%, 60%, 467%, 207%

  • Earning growth past 3 years
>35%
  • Profit Margin
>4%
  • Expected growth next 3 years

40-50%

  • EPS expected for 2018

2.7

  • Forward P/E Ratio

60

  • PEG Ratio

1.5-2

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PRICE TARGET AND POTENTIAL RETURN

PRICE TARGET 2018

336

%

POTENTIAL RETURN FROM FEBRUARY 9, 2018 LOWS

PRICE TARGET 2020

491

%

POTENTIAL RETURN FROM FEBRUARY 9, 2018 LOWS

ANALYSIS

We have used PE of 120 to determine our price target. Going forward, we have used very conservative estimates to arrive at our PRICE TARGET. We have used a earning growth rate of 50% and 40% to estimate our targets. 

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