NFLX — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($97.09)
DCF	$490.99	+405.7%
Graham Number	$18.94	-80.5%
Reverse DCF	—	implied g: 4.3%
DDM	—	—
EV/EBITDA	$96.74	-0.4%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $24.82B

Near-term growth (yrs 1–5)(%)Rev: 17.6% / EPS: 32.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 13.18%

Computed WACC: 13.18%

Cost of equity (Re)13.73%(Rf 4.30% + β 1.71 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)96.04%

Debt weight (D/V)3.96%

Results

Intrinsic Value / share$260.47

Current Price$97.09

Upside / Downside+168.3%

Net Debt (used)$7.91B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	24.7%	28.7%	32.7%	36.7%	40.7%
7.0%	$564.16	$658.11	$764.30	$883.90	$1018.14
8.0%	$445.56	$519.29	$602.58	$696.35	$801.56
9.0%	$364.34	$424.23	$491.86	$567.97	$653.33
10.0%	$305.48	$355.36	$411.66	$474.99	$545.99
11.0%	$261.05	$303.38	$351.14	$404.83	$465.01

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $2.53

Book Value / share($)Yahoo: $6.30

Results

Graham Number$18.94

Current Price$97.09

Margin of Safety-80.5%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 13.18%

Terminal growth rate(%)

Computed WACC: 13.18%

Cost of equity (Re)13.73%(Rf 4.30% + β 1.71 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)96.04%

Debt weight (D/V)3.96%

Results

Current Price$97.09

Implied Near-term FCF Growth13.9%

Historical Revenue Growth17.6%

Historical Earnings Growth32.7%

Base FCF (TTM)$24.82B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$97.09

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $13.66B

Target EV/EBITDA multipleCurrent: 30.6×

Net Debt($B)Default: $7.91B

Results

Implied Equity Value / share$96.74

Current Price$97.09

Upside / Downside-0.4%

Implied EV$417.85B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$3.91B	$5.91B	$7.91B	$9.91B	$11.91B
26.6x	$84.79	$84.32	$83.85	$83.38	$82.90
28.6x	$91.24	$90.77	$90.30	$89.82	$89.35
30.6x	$97.69	$97.22	$96.74	$96.27	$95.80
32.6x	$104.13	$103.66	$103.19	$102.72	$102.25
34.6x	$110.58	$110.11	$109.64	$109.17	$108.69

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