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Netflix (NFLX) Cyclically Adjusted PS Ratio : 11.33 (As of Apr. 27, 2024)


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What is Netflix Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Netflix's current share price is $561.23. Netflix's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was $49.54. Netflix's Cyclically Adjusted PS Ratio for today is 11.33.

The historical rank and industry rank for Netflix's Cyclically Adjusted PS Ratio or its related term are showing as below:

NFLX' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 4.83   Med: 14.05   Max: 31.77
Current: 11.4

During the past years, Netflix's highest Cyclically Adjusted PS Ratio was 31.77. The lowest was 4.83. And the median was 14.05.

NFLX's Cyclically Adjusted PS Ratio is ranked worse than
97.98% of 692 companies
in the Media - Diversified industry
Industry Median: 0.89 vs NFLX: 11.40

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Netflix's adjusted revenue per share data for the three months ended in Mar. 2024 was $21.217. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $49.54 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Netflix Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Netflix's Cyclically Adjusted PS Ratio 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 PS Ratio Chart

Netflix Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.37 21.73 18.67 7.32 10.19

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 PS Ratio 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 8.14 9.92 8.15 10.19 12.26

Competitive Comparison of Netflix's Cyclically Adjusted PS Ratio

For the Entertainment subindustry, Netflix's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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 PS Ratio Distribution in the Media - Diversified Industry

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

* The bar in red indicates where Netflix's Cyclically Adjusted PS Ratio falls into.



Netflix Cyclically Adjusted PS Ratio Calculation

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

Netflix's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=561.23/49.54
=11.33

* 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.

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

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

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=21.217/129.4194*129.4194
=21.217

Current CPI (Mar. 2024) = 129.4194.

Netflix Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 3.107 100.560 3.999
201409 3.257 100.428 4.197
201412 3.433 99.070 4.485
201503 3.626 99.621 4.711
201506 3.771 100.684 4.847
201509 3.972 100.392 5.120
201512 4.160 99.792 5.395
201603 4.470 100.470 5.758
201606 4.805 101.688 6.115
201609 5.224 101.861 6.637
201612 5.630 101.863 7.153
201703 5.919 102.862 7.447
201706 6.242 103.349 7.817
201709 6.672 104.136 8.292
201712 7.332 104.011 9.123
201803 8.218 105.290 10.101
201806 8.653 106.317 10.533
201809 8.850 106.507 10.754
201812 9.281 105.998 11.332
201903 10.004 107.251 12.072
201906 10.887 108.070 13.038
201909 11.615 108.329 13.876
201912 12.113 108.420 14.459
202003 12.746 108.902 15.147
202006 13.544 108.767 16.116
202009 14.142 109.815 16.667
202012 14.594 109.897 17.187
202103 15.721 111.754 18.206
202106 16.131 114.631 18.212
202109 16.450 115.734 18.395
202112 16.914 117.630 18.609
202203 17.369 121.301 18.531
202206 17.705 125.017 18.329
202209 17.599 125.227 18.188
202212 17.385 125.222 17.968
202303 18.040 127.348 18.333
202306 18.131 128.729 18.228
202309 18.981 129.860 18.917
202312 19.892 129.419 19.892
202403 21.217 129.419 21.217

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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 PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Netflix Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Netflix's Cyclically Adjusted PS Ratio 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