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Netflix (UKEX:NFLX) Cyclically Adjusted Price-to-FCF : (As of May. 26, 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)
=193.969/131.7762*131.7762
=193.969

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 -6.856 100.428 -8.996
201412 -7.167 99.070 -9.533
201503 -15.094 99.621 -19.966
201506 -21.022 100.684 -27.514
201509 -22.744 100.392 -29.854
201512 -25.466 99.792 -33.628
201603 -23.819 100.470 -31.241
201606 -23.335 101.688 -30.240
201609 -46.325 101.861 -59.930
201612 -58.033 101.863 -75.075
201703 -37.958 102.862 -48.628
201706 -54.566 103.349 -69.575
201709 -41.563 104.136 -52.595
201712 -41.717 104.011 -52.853
201803 -25.346 105.290 -31.722
201806 -49.552 106.317 -61.418
201809 -65.424 106.507 -80.946
201812 -113.229 105.998 -140.766
201903 -39.050 107.251 -47.980
201906 -51.718 108.070 -63.063
201909 -48.577 108.329 -59.091
201912 -139.423 108.420 -169.458
202003 14.344 108.902 17.357
202006 79.427 108.767 96.229
202009 101.658 109.815 121.988
202012 -25.186 109.897 -30.200
202103 61.263 111.754 72.239
202106 -15.331 114.631 -17.624
202109 -7.486 115.734 -8.524
202112 -50.071 117.630 -56.093
202203 70.953 121.301 77.080
202206 1.134 125.017 1.195
202209 42.006 125.227 44.203
202212 29.493 125.222 31.037
202303 187.575 127.348 194.098
202306 118.901 128.729 121.716
202309 168.235 129.860 170.718
202312 142.780 129.419 145.380
202403 193.969 131.776 193.969

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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