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Netflix (CHIX:NFCD) Cyclically Adjusted Price-to-FCF : (As of May. 20, 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)
=4.451/131.7762*131.7762
=4.451

Current CPI (Mar. 2024) = 131.7762.

Netflix Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.026 100.560 0.034
201409 -0.133 100.428 -0.175
201412 -0.145 99.070 -0.193
201503 -0.348 99.621 -0.460
201506 -0.467 100.684 -0.611
201509 -0.505 100.392 -0.663
201512 -0.583 99.792 -0.770
201603 -0.534 100.470 -0.700
201606 -0.518 101.688 -0.671
201609 -1.030 101.861 -1.332
201612 -1.372 101.863 -1.775
201703 -0.885 102.862 -1.134
201706 -1.211 103.349 -1.544
201709 -0.870 104.136 -1.101
201712 -0.879 104.011 -1.114
201803 -0.513 105.290 -0.642
201806 -1.058 106.317 -1.311
201809 -1.399 106.507 -1.731
201812 -2.483 105.998 -3.087
201903 -0.862 107.251 -1.059
201906 -1.142 108.070 -1.393
201909 -1.100 108.329 -1.338
201912 -3.130 108.420 -3.804
202003 0.324 108.902 0.392
202006 1.759 108.767 2.131
202009 2.153 109.815 2.584
202012 -0.516 109.897 -0.619
202103 1.284 111.754 1.514
202106 -0.317 114.631 -0.364
202109 -0.159 115.734 -0.181
202112 -1.105 117.630 -1.238
202203 1.607 121.301 1.746
202206 0.027 125.017 0.028
202209 1.058 125.227 1.113
202212 0.694 125.222 0.730
202303 4.370 127.348 4.522
202306 2.737 128.729 2.802
202309 3.932 129.860 3.990
202312 3.266 129.419 3.325
202403 4.451 131.776 4.451

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  (CHIX:NFCd) 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 (CHIX:NFCD) 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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