Netflix, Inc. (NFLX): Our Calculation of Intrinsic Value

Core Insights - Netflix is the leading subscription video-on-demand platform with over 260 million global subscribers, benefiting from strong recurring revenue and content investments that drive user engagement and international growth [2] - The company faces challenges such as high content spending, fluctuating free cash flow, and debt management, while also competing with platforms like Disney+ and Amazon Prime Video [2] - A DCF analysis indicates that Netflix's enterprise value is estimated at $139.40 billion, with an intrinsic value per share of $312, suggesting the stock is currently overvalued at around $1,200 [3][5] Financial Analysis - Forecasted Free Cash Flows (in billions USD) show a total present value of FCFs at $37.65 billion, with a terminal value calculated at $161.9 billion, leading to a present value of terminal value of $101.75 billion [3][4] - The net debt stands at $6.00 billion, resulting in an equity value of $133.40 billion after accounting for total debt of $15.58 billion [5] - The DCF model uses a discount rate of 10% and a terminal growth rate of 3%, with projected free cash flows for 2025 to 2029 ranging from $9.0 billion to $11.0 billion [4]