uploads///fwd pe faang

Comparing the Valuations of Content-Streaming FAANG Stocks

By

Oct. 4 2018, Updated 9:30 a.m. ET

How FAANG stocks’ valuations stack up

Analysts expect Netflix’s (NFLX) revenues to be $15.9 billion, $19.8 billion, and $24 billion, respectively, in 2018, 2019, and 2020. Its revenue costs are expected to be $9.5 billion, $11.7 billion, and $13.6 billion, respectively, in the same years.

The company’s PE multiples are expected to be 141.5x, 86.9x, and 55.5x, respectively, in 2018, 2019, and 2020. The stock has risen 94.9% YTD (year-to-date) and has “strong buy,” “buy,” and “hold” recommendations from ten, 18, and 13 analysts, respectively. The stock has received “sell” and “strong sell” recommendations from one and two analysts, respectively.

Article continues below advertisement

Amazon’s (AMZN) projected net sales figures for 2018, 2019, and 2020 are $235 billion, $286.8 billion, and $343.8 billion, respectively. Its sales costs for the same years are expected to be $140.4 billion, $167 billion, and $193.4 billion, respectively. Its forecast PE multiples for these years are 115.1x, 78.5x, and 52.7x, respectively. The stock has risen 71.3% YTD and has “strong buy” and “buy” recommendations from 17 and 29 analysts, respectively. One has given the stock a “hold,” and one has given it a “sell.”

Analysts expect Alphabet’s (GOOG) revenues to be $137 billion, $163.4 billion, and $191.1 billion, respectively, in 2018, 2019, and 2020. Its revenue costs are expected to be $59 billion, $71.7 billion, and $85.4 billion, respectively, for those years. Its PE multiples are expected to be 30.2x, 24.9x, and 2 1.2x, respectively, in 2018, 2019, and 2020. The stock has risen 14.1% YTD and has “strong buy” and “buy” recommendations from two and three analysts, respectively.

Article continues below advertisement

Analysts expect Facebook’s (FB) revenues to be $55.6 billion, $69.4 billion, and $84.6 billion, respectively, in 2018, 2019, and 2020. Its revenue costs are expected to be $9.1 billion, $12.2 billion, and $15.9 billion, respectively, in the same years. Its forecast PE multiples for these years are 23.5x, 20.3x, and 17.8x, respectively. The stock has fallen 6.8% YTD, and it has “strong buy” and “buy” recommendations from 17 and 25 analysts, respectively. It has “hold,” “sell,” and “strong sell” recommendations from four analysts, one analyst, and one analyst, respectively.

Apple’s (AAPL) sales are expected to be $263.9 billion, $280.5 billion, and $292.3 billion, respectively, in fiscals 2018, 2019, and 2020. Its sales costs are expected to be $162.9 billion, $170.8 billion, and $177.4 billion, respectively, in the same fiscal years. Its forecast PE multiples for these years are 19.1x, 16.4x, and 14.9x, respectively. The stock has risen 33.4% YTD and has “strong buy,” “buy,” and “hold” recommendations from 15, 13, and 14 analysts, respectively.

Advertisement

More From Market Realist