Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Netflix Inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Netflix Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Netflix Inc. FCFF increased from 2021 to 2022 and from 2022 to 2023. |
Interest Paid, Net of Tax
Netflix Inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2 2023 Calculation
Interest paid, tax = Interest paid × EITR
= 684,504 × 13.00% = 88,986
Enterprise Value to FCFF Ratio, Current
Netflix Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 379,858,182) |
| Free cash flow to the firm (FCFF) | 7,521,267) |
| Valuation Ratio | |
| EV/FCFF | 50.50 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Alphabet Inc. | 30.06 |
| Comcast Corp. | 16.14 |
| Meta Platforms Inc. | 31.08 |
| Walt Disney Co. | 23.70 |
| EV/FCFF, Sector | |
| Media & Entertainment | 30.08 |
| EV/FCFF, Industry | |
| Communication Services | 26.89 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Netflix Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 254,260,097) | 170,788,302) | 181,045,624) | 246,646,811) | 160,321,713) | |
| Free cash flow to the firm (FCFF)2 | 7,521,267) | 2,214,967) | 539,845) | 2,585,251) | (2,595,147) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 33.81 | 77.11 | 335.37 | 95.41 | — | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Alphabet Inc. | 23.84 | 20.67 | 27.17 | 29.53 | 28.19 | |
| Comcast Corp. | 17.60 | 17.93 | 15.77 | 20.50 | 18.00 | |
| Meta Platforms Inc. | 26.42 | 24.09 | 15.40 | 29.48 | 25.83 | |
| Walt Disney Co. | 31.55 | 90.23 | 78.66 | 63.77 | 143.18 | |
| EV/FCFF, Sector | ||||||
| Media & Entertainment | 24.72 | 23.60 | 24.79 | 31.56 | 32.03 | |
| EV/FCFF, Industry | ||||||
| Communication Services | 22.31 | 23.31 | 31.50 | 25.72 | 24.63 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 254,260,097 ÷ 7,521,267 = 33.81
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | Netflix Inc. EV/FCFF ratio decreased from 2021 to 2022 and from 2022 to 2023. |