Analysis and Valuation of Netflix, Inc

Thesis title: Analysis and Valuation of Netflix, Inc
Author: Nogueira Baptista, Maria Miguel
Thesis type: Diploma thesis
Supervisor: Svačina, Pavel
Opponents: Menzl, Vojtěch
Thesis language: English
Abstract:
The aim of this master thesis is to analyze and understand Netflix, Inc. business, evaluate its position within the industry and determining its intrinsic value. The valuation date was set to April 16, 2024. The first chapter provides an overview of Netflix Inc., including its history, business model and stock performance. In the subsequent chapter, a detailed analysis of the media and entertainment industry is presented, examining key trends, competitors and market dynamics, for a deeper understanding of Netflix position within the industry. Then, in the third chapter, a financial analysis is conducted to assess Netflix financial performance and growth prospects. In the next chapter, after establishing some assumptions to project the value drivers, it was performed the valuation of the company through a Discounted Cash Flow (DCF) model. Additionally, a valuation based on market multiples was also presented to complement the DCF valuation. After that, in the investment risks section, a sensitivity analysis is conducted to evaluate the impact of key inputs on the DCF valuation and the possible scenarios of the intrinsic share price. Lastly, based on the valuation results and risk assessment is presented a final recommendation for investors, in the Investment Summary chapter.
Keywords: Intrinsic value; DCF model; Market multiples; Netflix; Valuation
Thesis title: Analysis and Valuation of Netflix, Inc: Stock Recommendation for Retail Investors
Author: Nogueira Baptista, Maria Miguel
Thesis type: Diplomová práce
Supervisor: Svačina, Pavel
Opponents: Menzl, Vojtěch
Thesis language: English
Abstract:
The aim of this master thesis is to analyze and understand Netflix, Inc. business, evaluate its position within the industry and determining its intrinsic value. The valuation date was set to April 16, 2024. The first chapter provides an overview of Netflix Inc., including its history, business model and stock performance. In the subsequent chapter, a detailed analysis of the media and entertainment industry is presented, examining key trends, competitors and market dynamics, for a deeper understanding of Netflix position within the industry. Then, in the third chapter, a financial analysis is conducted to assess Netflix financial performance and growth prospects. In the next chapter, after establishing some assumptions to project the value drivers, it was performed the valuation of the company through a Discounted Cash Flow (DCF) model. Additionally, a valuation based on market multiples was also presented to complement the DCF valuation. After that, in the investment risks section, a sensitivity analysis is conducted to evaluate the impact of key inputs on the DCF valuation and the possible scenarios of the intrinsic share price. Lastly, based on the valuation results and risk assessment is presented a final recommendation for investors, in the Investment Summary chapter.
Keywords: Netflix; Valuation; Intrinsic value; DCF model; Market multiples

Information about study

Study programme: Finance and Accounting
Type of study programme: Magisterský studijní program
Assigned degree: Ing.
Institutions assigning academic degree: Vysoká škola ekonomická v Praze
Faculty: Faculty of Finance and Accounting
Department: Department of Corporate Finance

Information on submission and defense

Date of assignment: 30. 10. 2023
Date of submission: 20. 5. 2024
Date of defense: 12. 6. 2024
Identifier in the InSIS system: https://insis.vse.cz/zp/86923/podrobnosti

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