GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Netflix Inc (NAS:NFLX) » Definitions » Cyclically Adjusted Price-to-FCF

Netflix (NFLX) Cyclically Adjusted Price-to-FCF : (As of Apr. 27, 2024)


View and export this data going back to 2002. Start your Free Trial

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.

* Premium members only.

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
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - -

Netflix Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

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)
=4.838/129.4194*129.4194
=4.838

Current CPI (Mar. 2024) = 129.4194.

Netflix Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.035 100.560 0.045
201409 -0.171 100.428 -0.220
201412 -0.179 99.070 -0.234
201503 -0.376 99.621 -0.488
201506 -0.524 100.684 -0.674
201509 -0.567 100.392 -0.731
201512 -0.635 99.792 -0.824
201603 -0.594 100.470 -0.765
201606 -0.582 101.688 -0.741
201609 -1.155 101.861 -1.467
201612 -1.448 101.863 -1.840
201703 -0.947 102.862 -1.191
201706 -1.361 103.349 -1.704
201709 -1.037 104.136 -1.289
201712 -1.041 104.011 -1.295
201803 -0.632 105.290 -0.777
201806 -1.236 106.317 -1.505
201809 -1.632 106.507 -1.983
201812 -2.824 105.998 -3.448
201903 -0.974 107.251 -1.175
201906 -1.290 108.070 -1.545
201909 -1.212 108.329 -1.448
201912 -3.478 108.420 -4.152
202003 0.358 108.902 0.425
202006 1.981 108.767 2.357
202009 2.536 109.815 2.989
202012 -0.628 109.897 -0.740
202103 1.528 111.754 1.770
202106 -0.382 114.631 -0.431
202109 -0.187 115.734 -0.209
202112 -1.249 117.630 -1.374
202203 1.770 121.301 1.888
202206 0.028 125.017 0.029
202209 1.048 125.227 1.083
202212 0.736 125.222 0.761
202303 4.679 127.348 4.755
202306 2.966 128.729 2.982
202309 4.196 129.860 4.182
202312 3.561 129.419 3.561
202403 4.838 129.419 4.838

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  (NAS:NFLX) 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

Thank you for viewing the detailed overview of Netflix's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Netflix (NFLX) 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.
Executives
Reed Hastings director, 10 percent owner, officer: CEO, other: CEO 121 ALBRIGHT WAY, LOS GATOS CA 95032
Ann Mather director
Gregory K Peters officer: Intl. Development Officer C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
Richard N Barton director C/O IAC, 152 WEST 57TH STREET, NEW YORK NY 10019
David A Hyman officer: General Counsel C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
Theodore A Sarandos officer: Chief Content Officer C/O NETFLIX, INC, 121 ALBRIGHT WAY, LOS GATOS CA 95032
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Timothy M Haley director 3000 SAND HILL ROAD, 2-290, MENLO PARK CA 94025
Jeffrey William Karbowski officer: Chief Accounting Officer 121 ALBRIGHT WAY, LOS GATOS CA 95032
Kenneth A Barker officer: Chief Accounting Officer C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Dicus Marian Lee officer: Chief Marketing Officer 526 WEST 111TH STREET, APARTMENT 3C, NEW YORK NY 10025
Meabe Sergio Ezama officer: Chief Talent Officer 59 HILLSIDE ROAD, GREENWICH CT 06830
Jessica Neal officer: Chief Talent Officer 100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Strive Masiyiwa director 265 FRANKLIN STREET, BOSTON MA 02110
John Bozoma Saint officer: Chief Marketing Officer 9255 SUNSET BLVD 2ND FLOOR, LOS ANGELES CA 90069