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Netflix (NAS:NFLX) GF Value Rank

: 6 (As of Today)
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Netflix has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Entertainment subindustry, Netflix's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Media - Diversified industry and Communication Services sector, Netflix's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Netflix's GF Value Rank falls into.

Netflix GF Value Rank Related Terms

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Netflix (NAS:NFLX) Business Description

Netflix logo
121 Albright Way, Los Gatos, CA, USA, 95032
Netflix's primary business is a streaming video on demand service now available in almost every country worldwide except China. The firm primarily generates revenue from subscriptions to its eponymous service. Netflix delivers original and third-party digital video content to PCs, internet-connected TVs, and consumer electronic devices, including tablets, video game consoles, Apple TV, Roku, and Chromecast. Netflix is the largest SVOD platform in the world with over 220 million subscribers globally.
Jeffrey William Karbowski officer: Chief Accounting Officer 121 ALBRIGHT WAY, LOS GATOS CA 95032
Kenneth A Barker officer: Chief Accounting Officer C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Dicus Marian Lee officer: Chief Marketing Officer 526 WEST 111TH STREET, APARTMENT 3C, NEW YORK NY 10025
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Meabe Sergio Ezama officer: Chief Talent Officer 59 HILLSIDE ROAD, GREENWICH CT 06830
Strive Masiyiwa director 265 FRANKLIN STREET, BOSTON MA 02110
John Bozoma Saint officer: Chief Marketing Officer 9255 SUNSET BLVD 2ND FLOOR, LOS ANGELES CA 90069
Spencer Adam Neumann officer: Chief Financial Officer SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Rachel Whetstone officer: Chief Communications Officer 185 TUSCALOOSA AVENUE, ATHERTON CA 94027
Susan E Rice director 100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Rodolphe Belmer director 100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Jessica Neal officer: Chief Talent Officer 100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Jonathan Friedland officer: Chief Communications Officer C/O NETFLIX, INC., 100 WINCHESTER CIRCLE, LOS GATOS CA 95032