Netflix, Inc.
NFLX Details
Netflix, Inc. (NASDAQ: NFLX) is one of the world's leading entertainment services, with over 222 million paid subscriptions in over 190 countries watching TV shows, documentaries, and feature films in a wide range of genres and languages. It streams original and third-party digital video content to PCs, Internet-connected TVs, and consumer electronics such as tablets, video game consoles, Apple TV, Roku, and Chromecast.
FY21 Results:
Key Risks:
Outlook:
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
NFLX Daily Technical Chart (Source: REFINITIV)
Stock Recommendation:
NFLX's stock price has fallen 47.04% in the past three months and made a new 52-week low today. The stock is currently trading far below its 50 and 200 DMA levels, and its RSI Index is at 9.07, indicating an oversold zone. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 434.28.
Considering the significant correction in the stock price, strong revenue track record, associated risks, and current valuation, we recommend a "Buy" rating on the stock at the current price of USD 354.88, down 10.74% as of January 24, 2022, at 12:36 PM ET.
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.