Seeking Alpha

Netflix: Is the sky really the limit?

  • Is Netflix (NFLX +1.3%) already being valuated at the upper bounds of its subscriber and revenue potential, asks SA contributor The Unintelligible Investor?
  • After crunching the numbers using some fairly generous assumptions (341M global subscribers) going all the way out to 2028, an intrinsic value of $22.5B for Netflix is derived compared to the current market cap of $20.99B.
  • Though it's hard to knock a NFLX bull off the long-term story, scratching around with the long-term revenue, profit, and subscriber estimates shows  the growth track the company will have to maintain unless pricing or the business model changes dramatically.
Comments (3)
  • Esekla
    , contributor
    Comments (2291) | Send Message
     
    This is the first Market Current I've seen posted where the ONLY news is an SA story. I hope it will be the last such instance? I specifically exclude stories from my alerts, and I could easily have made my settings otherwise if I'd wanted.
    26 Nov 2013, 03:22 PM Reply Like
  • BfloC
    , contributor
    Comment (1) | Send Message
     
    I second that.
    26 Nov 2013, 10:23 PM Reply Like
  • andypochta1
    , contributor
    Comments (1046) | Send Message
     
    Agree, but great article by The Unintelligible Investor though.
    27 Nov 2013, 10:49 AM Reply Like
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