Discounted Cash Flow (DCF) Analysis Levered
Netflix, Inc. (NFLX)
$186.35
+2.87 (+1.56%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 11,692.71 | 15,794.34 | 20,156.45 | 24,996.06 | 29,697.84 | 37,531.91 | 47,432.55 | 59,944.90 | 75,757.92 | 95,742.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -1,785.95 | -2,680.48 | -2,887.32 | 2,427.08 | 392.61 | -2,667.61 | -3,371.30 | -4,260.63 | -5,384.55 | -6,804.95 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -227.02 | -212.53 | -253.03 | -497.92 | -524.59 | -623.10 | -787.47 | -995.20 | -1,257.73 | -1,589.51 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -2,012.97 | -2,893.01 | -3,140.36 | 1,929.15 | -131.98 | -3,290.71 | -4,158.77 | -5,255.83 | -6,642.28 | -8,394.46 |
Weighted Average Cost Of Capital
| Share price | $ 186.35 |
|---|---|
| Beta | 1.279 |
| Diluted Shares Outstanding | 454.21 |
| Cost of Debt | |
| Tax Rate | 12.39 |
| After-tax Cost of Debt | 4.35% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.822 |
| Total Debt | 15,392.90 |
| Total Equity | 84,641.66 |
| Total Capital | 100,034.56 |
| Debt Weighting | 15.39 |
| Equity Weighting | 84.61 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 11,692.71 | 15,794.34 | 20,156.45 | 24,996.06 | 29,697.84 | 37,531.91 | 47,432.55 | 59,944.90 | 75,757.92 | 95,742.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -1,785.95 | -2,680.48 | -2,887.32 | 2,427.08 | 392.61 | -2,667.61 | -3,371.30 | -4,260.63 | -5,384.55 | -6,804.95 |
| Capital Expenditure | -227.02 | -212.53 | -253.03 | -497.92 | -524.59 | -623.10 | -787.47 | -995.20 | -1,257.73 | -1,589.51 |
| Free Cash Flow | -2,012.97 | -2,893.01 | -3,140.36 | 1,929.15 | -131.98 | -3,290.71 | -4,158.77 | -5,255.83 | -6,642.28 | -8,394.46 |
| WACC | ||||||||||
| PV LFCF | -2,814.47 | -3,289.48 | -3,844.65 | -4,493.51 | -5,251.89 | |||||
| SUM PV LFCF | -21,295.12 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.13 |
| Free cash flow (t + 1) | -8,562.35 |
| Terminal Value | -139,679.41 |
| Present Value of Terminal Value | -94,493.38 |
Intrinsic Value
| Enterprise Value | -115,788.50 |
|---|---|
| Net Debt | 9,365.09 |
| Equity Value | -125,153.59 |
| Shares Outstanding | 454.21 |
| Equity Value Per Share | -275.54 |