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Netflix (BUE:NFLX) Cyclically Adjusted Price-to-FCF : (As of Apr. 27, 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)
=4076.179/129.4194*129.4194
=4,076.179

Current CPI (Mar. 2024) = 129.4194.

Netflix Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.286 100.560 0.368
201409 -1.440 100.428 -1.856
201412 -1.529 99.070 -1.997
201503 -3.321 99.621 -4.314
201506 -4.764 100.684 -6.124
201509 -5.334 100.392 -6.876
201512 -8.222 99.792 -10.663
201603 -8.677 100.470 -11.177
201606 -8.137 101.688 -10.356
201609 -17.236 101.861 -21.899
201612 -22.947 101.863 -29.155
201703 -14.597 102.862 -18.366
201706 -22.441 103.349 -28.102
201709 -18.167 104.136 -22.578
201712 -19.869 104.011 -24.723
201803 -12.738 105.290 -15.657
201806 -30.826 106.317 -37.524
201809 -60.051 106.507 -72.970
201812 -106.490 105.998 -130.020
201903 -38.074 107.251 -45.944
201906 -57.637 108.070 -69.024
201909 -67.763 108.329 -80.955
201912 -207.871 108.420 -248.132
202003 22.208 108.902 26.392
202006 135.630 108.767 161.383
202009 188.248 109.815 221.855
202012 -51.125 109.897 -60.207
202103 137.651 111.754 159.409
202106 -36.224 114.631 -40.897
202109 -18.258 115.734 -20.417
202112 -126.128 117.630 -138.770
202203 190.025 121.301 202.743
202206 3.403 125.017 3.523
202209 145.585 125.227 150.460
202212 123.333 125.222 127.467
202303 924.276 127.348 939.311
202306 711.785 128.729 715.604
202309 1,468.499 129.860 1,463.522
202312 1,285.662 129.419 1,285.662
202403 4,076.179 129.419 4,076.179

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  (BUE: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 (BUE: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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