Discounted Cash Flow (DCF) Analysis Levered
Netflix, Inc. (NFLX)
$ 628.08
+2.50 (+0.40%)
Free Cash Flow
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected |
| Revenue | 8,830.67 | 11,692.71 | 15,794.34 | 20,156.45 | 24,996.06 | 32,439.70 | 42,100.02 | 54,637.10 | 70,907.64 | 92,023.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -1,473.98 | -1,785.95 | -2,680.48 | -2,887.32 | 2,427.08 | -3,474.39 | -4,509.04 | -5,851.80 | -7,594.42 | -9,855.99 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -184.83 | -227.02 | -212.53 | -253.03 | -497.92 | -559.75 | -726.44 | -942.77 | -1,223.52 | -1,587.88 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -1,658.81 | -2,012.97 | -2,893.01 | -3,140.36 | 1,929.15 | -4,034.14 | -5,235.48 | -6,794.57 | -8,817.95 | -11,443.87 |
Weighted Average Cost Of Capital
| Share price | $ 628.08 |
|---|---|
| Beta | 0.812 |
| Diluted Shares Outstanding | 454.21 |
| Cost of Debt | |
| Tax Rate | 13.69 |
| After-tax Cost of Debt | 7.34% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.344 |
| Total Debt | 16,308.97 |
| Total Equity | 285,278.96 |
| Total Capital | 301,587.93 |
| Debt Weighting | 5.41 |
| Equity Weighting | 94.59 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected |
| Revenue | 8,830.67 | 11,692.71 | 15,794.34 | 20,156.45 | 24,996.06 | 32,439.70 | 42,100.02 | 54,637.10 | 70,907.64 | 92,023.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -1,473.98 | -1,785.95 | -2,680.48 | -2,887.32 | 2,427.08 | -3,474.39 | -4,509.04 | -5,851.80 | -7,594.42 | -9,855.99 |
| Capital Expenditure | -184.83 | -227.02 | -212.53 | -253.03 | -497.92 | -559.75 | -726.44 | -942.77 | -1,223.52 | -1,587.88 |
| Free Cash Flow | -1,658.81 | -2,012.97 | -2,893.01 | -3,140.36 | 1,929.15 | -4,034.14 | -5,235.48 | -6,794.57 | -8,817.95 | -11,443.87 |
| WACC | ||||||||||
| PV LFCF | -3,825.65 | -4,708.30 | -5,794.59 | -7,131.51 | -8,776.88 | |||||
| SUM PV LFCF | -30,236.91 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.45 |
| Free cash flow (t + 1) | -12,016.07 |
| Terminal Value | -2,670,236.92 |
| Present Value of Terminal Value | -2,047,938.34 |
Intrinsic Value
| Enterprise Value | -2,078,175.25 |
|---|---|
| Net Debt | 8,103.42 |
| Equity Value | -2,086,278.68 |
| Shares Outstanding | 454.21 |
| Equity Value Per Share | -4,593.22 |