Company Of The Day: Netflix
What?
Netflix (NASDAQ:NFLX) is raising pricing on its plans in the U.S. by between $1 to $2. The popular HD plan will see its price increase from $14 per month to $15.50.
Why?
- Up 27% Year To Date, Will Q1 Results Drive Netflix Stock Higher?
- Netflix On A Roll As It Benefits From Paid Sharing And Ads. Is The Stock Undervalued At $610?
- Up 50% Over Last Year, Will Q4 Earnings Drive Netflix Stock Higher?
- Will Netflix Stock Rally 40% To Return To Pre-Inflation Shock Highs?
- How Will The Password Sharing Crackdown Help Netflix Q3 Results?
- Will Netflix Stock Return To Pre-Inflation Shock Highs Of Over $650?
With subscriber growth in the U.S. cooling, Netflix is banking on price increases to drive revenue growth. The company carried out its last price hike in late 2020.
So What?
Netflix stock gained about 1% on Friday following the news.
See Our Complete Analysis For Netflix
We estimate Netflix Valuation to be around $635 per share which is 20% above the current market price. This represents a P/EBITDA multiple of 15.3x for the company based on our forecast for Netflix’s EBITDA for the current fiscal year.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
| Returns | Jan 2022 MTD [1] |
2022 YTD [1] |
2017-22 Total [2] |
| NFLX Return | -13% | -13% | 325% |
| S&P 500 Return | -2% | -2% | 108% |
| Trefis MS Portfolio Return | -7% | -7% | 264% |
[1] Month-to-date and year-to-date as of 1/16/2022
[2] Cumulative total returns since the end of 2016