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Is this Large Market Cap Stock target price reasonable for Netflix, Inc. (NASDAQ:NFLX)?

The company in question is, Netflix, Inc. (NASDAQ:NFLX) currently with a stock price of 96.77 (-2.30% today). The market cap for Netflix, Inc. is 43855.38, and is in the sector Services, and CATV Systems industry. The target price for Netflix, Inc. is 104.42. Currently Netflix, Inc. is trading with a P/E of 307.61, and a forward P/E of 113.46. Average volume for Netflix, Inc. is 10850.43 and so far today it is 2127066.

Performance in the last year for Netflix, Inc. has been 1.58%. For EPS growth, Netflix, Inc. has seen a growth of -54.50%, and is looking to grow in the next year to 205.24%. More long term stats show that EPS growth has been -7.90% over the last five years and could be 54.33% for the next five years. Netflix, Inc. has seen sales growth quarter over quarter at 28.00%, with EPS growth quarter over quarter at 54.00%. The 20-day simple moving average is 1.82%, with the 200-day simple moving average coming to -2.89%.

Since the IPO date for Netflix, Inc. on the 5/23/2002, Netflix, Inc. has seen performance year to date to be -13.40%. With Netflix, Inc. trading at 96.77, the dividend yield is *TBA, and the EPS is 0.32.

So could Netflix, Inc., be undervalued? Well as said before P/E is 307.61. The PEG is 5.66, P/S is 5.75 and the P/B is at 17.56. The P/cash is 23.91, with P/free cash flow at *TBA.

Netflix, Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1.3. This is with long term debt/equity at 0.98, and total debt/equity at 0.98.

In terms of margins, Netflix, Inc. has a gross margin of 30.90%, an operating margin of 3.30% and a profit margin of 1.80%.Payout ratio for Netflix, Inc. is 0.00%. Return on assets come to 1.30% with return on investment coming to 6.20%.

Insider ownership for Netflix, Inc., is at 1.82% and institutional ownership comes to 80.30%. Outstanding shares are at 442.76. While shares float is 416.37. The float short is currently 7.91%, and short ratio is 3.03.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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