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GuruFocus has detected 5 Warning Signs with Netflix Inc $NFLX.
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Netflix Inc (NAS:NFLX)
EV-to-EBITDA
137.67 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Netflix Inc's enterprise value is $64,449 Mil. Netflix Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $468 Mil. Therefore, Netflix Inc's EV/EBITDA ratio for today is 137.67.

NFLX' s EV-to-EBITDA Range Over the Past 10 Years
Min: 2.1   Max: 167.4
Current: 137.68

2.1
167.4

During the past 13 years, the highest EV/EBITDA Ratio of Netflix Inc was 167.40. The lowest was 2.10. And the median was 8.10.

NFLX's EV-to-EBITDA is ranked lower than
96% of the 481 Companies
in the Global Media - Diversified industry.

( Industry Median: 10.48 vs. NFLX: 137.68 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Netflix Inc's stock price is $145.95. Netflix Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.43. Therefore, Netflix Inc's P/E Ratio for today is 339.42.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Netflix Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=64449.099/468.149
=137.67

Netflix Inc's current Enterprise Value is $64,449 Mil.
Netflix Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 90.214 (Mar. 2016 ) + 100.818 (Jun. 2016 ) + 129.073 (Sep. 2016 ) + 148.044 (Dec. 2016 ) = $468 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Netflix Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=145.95/0.43
=339.42

Netflix Inc's share price for today is $145.95.
Netflix Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.06 (Mar. 2016 ) + 0.09 (Jun. 2016 ) + 0.12 (Sep. 2016 ) + 0.16 (Dec. 2016 ) = $0.43.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Netflix Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 4.363.987.4217.523.812.6011.558.24143.43116.97

Netflix Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 10.848.2413.7236.23123.24143.43138.07120.92118.93116.97
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