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.
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.
Netflix stock gained about 1% on Friday following the news.
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.
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