A Closer Look at Netflix



Enterprise value multiples

Netflix (NFLX) is trading at an estimated EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 66.28x.

In comparison, DISH Network (DISH), The Walt Disney Company (DIS), Comcast (CMCSA), and Time Warner (TWX) have EV-to-EBITDA multiples of 13.44x, 11.58x, 8.78x, and 11.28x, respectively.

Netflix’s seven-day MACD (moving average convergence divergence) is 0.86. Peer companies DISH Network, Walt Disney, Comcast, and Time Warner have MACDs of -0.23, 0.77, 0.21, and 0.51, respectively. MACD is the difference between a company’s short-term and long-term moving averages.

Article continues below advertisement

For the last 14 days, Netflix has a relative strength index (or RSI) of 64, compared to 56, 72, 64, and 60 for its peers DISH Network, Walt Disney, Comcast, and Time Warner, respectively. Generally, if an RSI is above 70, it indicates that a stock has been overbought. An RSI of below 30 suggests that a stock has been oversold.

Analysts’ recommendations

Of the 42 analysts covering Netflix, 25 have given it “buy” recommendations, and 15 have given it “hold” recommendations. There are two “sell” recommendations on the stock. Analysts’ target price for Netflix is $157.47 with a median target estimate of $165.

Market capitalization

Netflix’s market cap was $65.2 billion at the close of the last trading session.


More From Market Realist