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Netflix (UKEX:NFLX) Cyclically Adjusted Price-to-FCF : (As of Jun. 06, 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)
=193.958/131.7762*131.7762
=193.958

Current CPI (Mar. 2024) = 131.7762.

Netflix Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 1.410 100.560 1.848
201409 -6.855 100.428 -8.995
201412 -7.166 99.070 -9.532
201503 -15.093 99.621 -19.965
201506 -21.021 100.684 -27.513
201509 -22.743 100.392 -29.853
201512 -25.465 99.792 -33.627
201603 -23.818 100.470 -31.240
201606 -23.334 101.688 -30.238
201609 -46.323 101.861 -59.927
201612 -58.029 101.863 -75.070
201703 -37.955 102.862 -48.624
201706 -54.563 103.349 -69.571
201709 -41.561 104.136 -52.592
201712 -41.715 104.011 -52.851
201803 -25.345 105.290 -31.721
201806 -49.550 106.317 -61.416
201809 -65.420 106.507 -80.941
201812 -113.223 105.998 -140.758
201903 -39.047 107.251 -47.976
201906 -51.715 108.070 -63.059
201909 -48.574 108.329 -59.087
201912 -139.415 108.420 -169.448
202003 14.343 108.902 17.356
202006 79.422 108.767 96.223
202009 101.652 109.815 121.981
202012 -25.185 109.897 -30.199
202103 61.260 111.754 72.235
202106 -15.330 114.631 -17.623
202109 -7.486 115.734 -8.524
202112 -50.068 117.630 -56.089
202203 70.949 121.301 77.076
202206 1.134 125.017 1.195
202209 42.003 125.227 44.200
202212 29.492 125.222 31.036
202303 187.564 127.348 194.086
202306 118.895 128.729 121.710
202309 168.226 129.860 170.709
202312 142.772 129.419 145.372
202403 193.958 131.776 193.958

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  (UKEX: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

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Netflix (UKEX: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.

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