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Netflix (BSP:NFLX34) Cyclically Adjusted Price-to-FCF : (As of May. 17, 2024)


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What is Netflix Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Netflix Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Netflix's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Netflix Cyclically Adjusted Price-to-FCF Chart

Netflix Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
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Netflix Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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Competitive Comparison of Netflix's Cyclically Adjusted Price-to-FCF

For the Entertainment subindustry, Netflix's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Netflix's Cyclically Adjusted Price-to-FCF Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Netflix's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Netflix's Cyclically Adjusted Price-to-FCF falls into.



Netflix Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Netflix's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Netflix's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.482/131.7762*131.7762
=0.482

Current CPI (Mar. 2024) = 131.7762.

Netflix Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.002 100.560 0.003
201409 -0.008 100.428 -0.010
201412 -0.009 99.070 -0.012
201503 -0.024 99.621 -0.032
201506 -0.033 100.684 -0.043
201509 -0.044 100.392 -0.058
201512 -0.049 99.792 -0.065
201603 -0.044 100.470 -0.058
201606 -0.040 101.688 -0.052
201609 -0.075 101.861 -0.097
201612 -0.097 101.863 -0.125
201703 -0.059 102.862 -0.076
201706 -0.090 103.349 -0.115
201709 -0.065 104.136 -0.082
201712 -0.069 104.011 -0.087
201803 -0.041 105.290 -0.051
201806 -0.093 106.317 -0.115
201809 -0.134 106.507 -0.166
201812 -0.219 105.998 -0.272
201903 -0.075 107.251 -0.092
201906 -0.099 108.070 -0.121
201909 -0.100 108.329 -0.122
201912 -0.285 108.420 -0.346
202003 0.035 108.902 0.042
202006 0.206 108.767 0.250
202009 0.274 109.815 0.329
202012 -0.065 109.897 -0.078
202103 0.172 111.754 0.203
202106 -0.038 114.631 -0.044
202109 -0.020 115.734 -0.023
202112 -0.141 117.630 -0.158
202203 0.176 121.301 0.191
202206 0.003 125.017 0.003
202209 0.110 125.227 0.116
202212 0.077 125.222 0.081
202303 0.487 127.348 0.504
202306 0.288 128.729 0.295
202309 0.414 129.860 0.420
202312 0.349 129.419 0.355
202403 0.482 131.776 0.482

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Netflix  (BSP:NFLX34) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Netflix Cyclically Adjusted Price-to-FCF Related Terms

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Netflix (BSP:NFLX34) Business Description

Address
121 Albright Way, Los Gatos, CA, USA, 95032
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with almost 250 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm recently began introducing ad-supported subscription plans, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.

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