Netflix Revenue vs. Market Capitalization
| NFLX Stock | USD 555.12 22.63 3.92% |
Total Revenue | First Reported 2000-03-31 | Previous Quarter 8.8 B | Current Value 9.4 B | Quarterly Volatility 2.8 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.4 | 0.4154 |
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| Return On Equity | 0.25 | 0.2627 |
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For Netflix profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Netflix to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Netflix utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Netflix's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Netflix over time as well as its relative position and ranking within its peers.
Netflix |
Is Netflix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Netflix. If investors know Netflix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Netflix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.833 | Earnings Share 14.44 | Revenue Per Share 79.703 | Quarterly Revenue Growth 0.148 | Return On Assets 0.1001 |
The market value of Netflix is measured differently than its book value, which is the value of Netflix that is recorded on the company's balance sheet. Investors also form their own opinion of Netflix's value that differs from its market value or its book value, called intrinsic value, which is Netflix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Netflix's market value can be influenced by many factors that don't directly affect Netflix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Netflix's value and its price as these two are different measures arrived at by different means. Investors typically determine if Netflix is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Netflix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Netflix Market Capitalization vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Netflix's current stock value. Our valuation model uses many indicators to compare Netflix value to that of its competitors to determine the firm's financial worth. Netflix is regarded second in revenue category among related companies. It is considered to be number one stock in market capitalization category among related companies creating about 7.38 of Market Capitalization per Revenue. At this time, Netflix's Total Revenue is fairly stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Netflix by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Netflix's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Netflix's earnings, one of the primary drivers of an investment's value.Netflix Revenue vs. Competition
Netflix is regarded second in revenue category among related companies. Market size based on revenue of Communication Services industry is now estimated at about 137.84 Billion. Netflix totals roughly 33.72 Billion in revenue claiming about 24% of stocks in Communication Services industry.
Netflix Market Capitalization vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Netflix |
| = | 33.72 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Netflix |
| = | 248.95 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Netflix Market Capitalization vs Competition
Netflix is considered to be number one stock in market capitalization category among related companies. Market capitalization of Communication Services industry is now estimated at about 296.02 Billion. Netflix totals roughly 248.95 Billion in market capitalization claiming about 84% of stocks in Communication Services industry.
Netflix Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Netflix, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Netflix will eventually generate negative long term returns. The profitability progress is the general direction of Netflix's change in net profit over the period of time. It can combine multiple indicators of Netflix, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -223.9 M | -212.7 M | |
| Operating Income | 7 B | 7.3 B | |
| Income Before Tax | 6.2 B | 6.5 B | |
| Total Other Income Expense Net | -748.6 M | -711.2 M | |
| Net Income | 5.4 B | 5.7 B | |
| Income Tax Expense | -797.4 M | -757.5 M | |
| Net Income Applicable To Common Shares | 5.2 B | 5.4 B | |
| Net Income From Continuing Ops | 5.4 B | 5.7 B | |
| Non Operating Income Net Other | 387.9 M | 407.3 M | |
| Interest Income | 387.9 M | 353.4 M | |
| Net Interest Income | -748.6 M | -786 M | |
| Change To Netincome | 841.7 M | 883.8 M | |
| Net Income Per Share | 12.25 | 12.86 | |
| Income Quality | 1.35 | 1.21 | |
| Net Income Per E B T | 0.87 | 1.09 |
Netflix Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Netflix. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Netflix position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Netflix's important profitability drivers and their relationship over time.
Use Netflix in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Netflix position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Netflix will appreciate offsetting losses from the drop in the long position's value.Netflix Pair Trading
Netflix Pair Trading Analysis
The ability to find closely correlated positions to Netflix could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Netflix when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Netflix - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Netflix to buy it.
The correlation of Netflix is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Netflix moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Netflix moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Netflix can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Netflix position
In addition to having Netflix in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Hedge Favorites Thematic Idea Now
Hedge Favorites
Hedge Funds pool capital from accredited individuals or institutional investors and invest in a variety of assets, often with complex portfolio-construction and risk-management techniques. The Hedge Favorites theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hedge Favorites Theme or any other thematic opportunities.
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Check out Correlation Analysis. For more information on how to buy Netflix Stock please use our How to Invest in Netflix guide.You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Complementary Tools for Netflix Stock analysis
When running Netflix's price analysis, check to measure Netflix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Netflix is operating at the current time. Most of Netflix's value examination focuses on studying past and present price action to predict the probability of Netflix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Netflix's price. Additionally, you may evaluate how the addition of Netflix to your portfolios can decrease your overall portfolio volatility.
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To fully project Netflix's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Netflix at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Netflix's income statement, its balance sheet, and the statement of cash flows.