Intended for MBAs, this case concerns the valuation of Netflix, Inc., which was the largest U.S. on-line movie rental subscription service in early 2009. After reviewing the historic financial and customer relationship performance of Netflix, this case presents three strategies for valuing the firm in early 2009. The first is a firm-amount discounted cash flow analysis based on pro forma projections of income, earnings, and revenues.
The second approach tries to judge whether the prevailing market value of Netflix was fair by comparing chosen business ratios with those of comparable companies. The final strategy is dependant on the assumption that Netflix's enterprise value (EV) was the total of its current and future subscribers' worth (discounted present values, to be exact). There is also a spreadsheet available for pupils (UV4344).
PUBLICATION DATE: December 21, 2009 PRODUCT #: UV3928-PDF-ENG
Valuation of Netflix, Inc. Case Study Solution
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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