This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Netflix's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $75.044. Netflix's 10-Year median PS Ratio is 7.3237. Therefore, the Median PS Value for today is $549.60.
As of today (2024-04-19), Netflix's share price is $555.32. Netflix's Median PS Value is $549.60. Therefore, Netflix's Price to Median PS Value for today is 1.01.
The historical rank and industry rank for Netflix's Median PS Value or its related term are showing as below:
NFLX'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.58 Med: 1.47 Max: 3.09
Current: 1.01
During the past 13 years, the highest Price to Median PS Value of Netflix was 3.09. The lowest was 0.58. And the median was 1.47.
NFLX's Price-to-Median-PS-Value is ranked worse than 71.78% of 535
companies
in the Media - Diversified industry
Industry Median: 0.78
vs NFLX: 1.01
Netflix Median PS Value Historical Data
The historical data trend for Netflix's Median PS Value 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 Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Median PS Value
263.16
363.51
474.38
509.61
549.60
Netflix Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Median PS Value
509.61
514.49
517.59
527.64
549.60
Competitive Comparison
For the Entertainment subindustry, Netflix's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value 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 Price-to-Median-PS-Value Distribution
For the Media - Diversified industry and Communication Services sector, Netflix's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Netflix's Price-to-Median-PS-Value falls into.
Netflix Median PS Value Calculation
Netflix's Median PS Value for today is calculated as
10-Year Median PS Ratio is 7.3237.
Netflix's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $75.044.
* 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 (NAS:NFLX) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Netflix's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
555.32
/
549.60
=
1.01
* 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 Median PS Value Related Terms
Thank you for viewing the detailed overview of Netflix's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NFLX has been successfully added to your 