NASDAQ:NFLX). The company’s shares saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Netflix’s outlook and value based on the most recent financial data to see if the opportunity still exists.” data-reactid=”28″>Let’s talk about the popular Netflix, Inc. (NASDAQ:NFLX). The company’s shares saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Netflix’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Netflix ” data-reactid=”29″>Check out our latest analysis for Netflix
Is Netflix still cheap?
Netflix appears to be overvalued by 22% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$483 on the market compared to my intrinsic value of $397.14. This means that the opportunity to buy Netflix at a good price has disappeared! Furthermore, Netflix’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will Netflix generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Netflix. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
2 warning signs we think you should be aware of.” data-reactid=”53″>If you want to dive deeper into Netflix, you’d also look into what risks it is currently facing. For example – Netflix has 2 warning signs we think you should be aware of.
50 other stocks with a high growth potential.” data-reactid=”54″>If you are no longer interested in Netflix, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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