Valuation of Netflix

Thesis title: Valuation of Netflix
Author: Rodriguez Lagos, Pablo Jose
Thesis type: Bachelor thesis
Supervisor: Ali, Tanweer
Opponents: Sieber, Patrik
Thesis language: English
Abstract:
This paper applies valuation methodologies such as the Discounted Cash Flow (DCF) model and Relative valuation to value Netflilx Inc. The thesis poses the following research question, does Netflix's current share price reflects its intrinsic value? The thesis provides deeper insights into Netflix from a financial and business standpoint. An industry overview is conducted for the streaming services industry while tackling Netflix's competitive positioning. In addition to this, Netflix's financial performance is analyzed by comparing its results with those of its key competitors. Their financial results are projected 10 years into the future, which will provide the neccesary data to construct a discounted cash flow model supplemented by a relative valuation, scenario analysis, ans risk analysis. The output of this analysis is a buy/hold/sell recommendation based on the "intrinsic value" of the company.
Keywords: Financial Analysis; Competitive Positioning: Porter's 5 forces & PEST analysis; Relative Valuation; Sensitivity & Scenario Analysis; Discounted Cash Flow (DCF) Model
Thesis title: Valuation of Netflix
Author: Rodriguez Lagos, Pablo Jose
Thesis type: Bakalářská práce
Supervisor: Ali, Tanweer
Opponents: Sieber, Patrik
Thesis language: English
Abstract:
This paper applies valuation methodologies such as the Discounted Cash Flow (DCF) model and Relative valuation to value Netflilx Inc. The thesis poses the following research question, does Netflix's current share price reflects its intrinsic value? The thesis provides deeper insights into Netflix from a financial and business standpoint. An industry overview is conducted for the streaming services industry while tackling Netflix's competitive positioning. In addition to this, Netflix's financial performance is analyzed by comparing its results with those of its key competitors. Their financial results are projected 10 years into the future, which will provide the neccesary data to construct a discounted cash flow model supplemented by a relative valuation, scenario analysis, ans risk analysis. The output of this analysis is a buy/hold/sell recommendation based on the "intrinsic value" of the company.
Keywords: Sensitivity Analysis; Discounted Cash Flow (DCF) Model; Financial Analysis; Competitive Positioning: Porter's 5 forces & PEST analysis; Relative Valuation

Information about study

Study programme: Bachelor of Business Administration
Type of study programme: Bakalářský studijní program
Assigned degree: Bc.
Institutions assigning academic degree: Vysoká škola ekonomická v Praze
Faculty: Faculty of Business Administration
Department: Department of strategy

Information on submission and defense

Date of assignment: 24. 2. 2024
Date of submission: 15. 5. 2024
Date of defense: 19. 6. 2024
Identifier in the InSIS system: https://insis.vse.cz/zp/87741/podrobnosti

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