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Netflix (XTER:NFC) Cyclically Adjusted PS Ratio : 12.78 (As of May. 22, 2024)


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What is Netflix Cyclically Adjusted PS Ratio?

As of today (2024-05-22), Netflix's current share price is €595.00. Netflix's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €46.56. Netflix's Cyclically Adjusted PS Ratio for today is 12.78.

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

XTER:NFC' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 4.83   Med: 14.05   Max: 31.77
Current: 12.71

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.

XTER:NFC's Cyclically Adjusted PS Ratio is ranked worse than
98.02% of 707 companies
in the Media - Diversified industry
Industry Median: 0.9 vs XTER:NFC: 12.71

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 €19.519. 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 €46.56 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 12.05

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
=595.00/46.56
=12.78

* 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)
=19.519/131.7762*131.7762
=19.519

Current CPI (Mar. 2024) = 131.7762.

Netflix Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 2.287 100.560 2.997
201409 2.527 100.428 3.316
201412 2.784 99.070 3.703
201503 3.351 99.621 4.433
201506 3.360 100.684 4.398
201509 3.539 100.392 4.645
201512 3.819 99.792 5.043
201603 4.014 100.470 5.265
201606 4.276 101.688 5.541
201609 4.655 101.861 6.022
201612 5.337 101.863 6.904
201703 5.534 102.862 7.090
201706 5.555 103.349 7.083
201709 5.598 104.136 7.084
201712 6.195 104.011 7.849
201803 6.664 105.290 8.340
201806 7.407 106.317 9.181
201809 7.584 106.507 9.383
201812 8.158 105.998 10.142
201903 8.853 107.251 10.877
201906 9.635 108.070 11.749
201909 10.547 108.329 12.830
201912 10.902 108.420 13.251
202003 11.536 108.902 13.959
202006 12.027 108.767 14.571
202009 12.006 109.815 14.407
202012 11.996 109.897 14.384
202103 13.206 111.754 15.572
202106 13.389 114.631 15.392
202109 13.982 115.734 15.920
202112 14.969 117.630 16.769
202203 15.771 121.301 17.133
202206 16.749 125.017 17.655
202209 17.775 125.227 18.705
202212 16.411 125.222 17.270
202303 16.849 127.348 17.435
202306 16.735 128.729 17.131
202309 17.785 129.860 18.048
202312 18.241 129.419 18.573
202403 19.519 131.776 19.519

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  (XTER:NFC) 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 (XTER:NFC) 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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