Discounted Cash Flow (DCF) Analysis Levered
Netflix, Inc. (NFLX)
$416.85
+7.48 (+1.83%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 15,794.34 | 20,156.45 | 24,996.06 | 29,697.84 | 31,615.55 | 37,693.32 | 44,939.47 | 53,578.62 | 63,878.56 | 76,158.56 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -2,680.48 | -2,887.32 | 2,427.08 | 392.61 | 2,026.26 | -1,044.47 | -1,245.25 | -1,484.64 | -1,770.05 | -2,110.32 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -212.53 | -253.03 | -497.92 | -524.59 | -407.73 | -576.63 | -687.49 | -819.65 | -977.22 | -1,165.08 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -2,893.01 | -3,140.36 | 1,929.15 | -131.98 | 1,618.53 | -1,621.10 | -1,932.74 | -2,304.29 | -2,747.27 | -3,275.40 |
Weighted Average Cost Of Capital
| Share price | $ 416.85 |
|---|---|
| Beta | 1.273 |
| Diluted Shares Outstanding | 451.29 |
| Cost of Debt | |
| Tax Rate | 14.67 |
| After-tax Cost of Debt | 4.20% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.758 |
| Total Debt | 14,353.08 |
| Total Equity | 188,120.24 |
| Total Capital | 202,473.31 |
| Debt Weighting | 7.09 |
| Equity Weighting | 92.91 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 15,794.34 | 20,156.45 | 24,996.06 | 29,697.84 | 31,615.55 | 37,693.32 | 44,939.47 | 53,578.62 | 63,878.56 | 76,158.56 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -2,680.48 | -2,887.32 | 2,427.08 | 392.61 | 2,026.26 | -1,044.47 | -1,245.25 | -1,484.64 | -1,770.05 | -2,110.32 |
| Capital Expenditure | -212.53 | -253.03 | -497.92 | -524.59 | -407.73 | -576.63 | -687.49 | -819.65 | -977.22 | -1,165.08 |
| Free Cash Flow | -2,893.01 | -3,140.36 | 1,929.15 | -131.98 | 1,618.53 | -1,621.10 | -1,932.74 | -2,304.29 | -2,747.27 | -3,275.40 |
| WACC | ||||||||||
| PV LFCF | -1,482.35 | -1,616.06 | -1,761.82 | -1,920.73 | -2,093.98 | |||||
| SUM PV LFCF | -8,874.94 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.36 |
| Free cash flow (t + 1) | -3,340.91 |
| Terminal Value | -45,392.77 |
| Present Value of Terminal Value | -29,019.78 |
Intrinsic Value
| Enterprise Value | -37,894.72 |
|---|---|
| Net Debt | 9,205.90 |
| Equity Value | -47,100.62 |
| Shares Outstanding | 451.29 |
| Equity Value Per Share | -104.37 |