NFLX – Market expectations are for Uniform ROA to fade, but management may have concerns about about growth, movies, and subscriptions
February 8, 2022
- Netflix, Inc. (NFLX) currently trades near corporate but below recent averages relative to Uniform earnings, with a 28.6x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to fade to 44% levels, accompanied by 9% Uniform asset growth.
- Meanwhile, analysts expect Uniform ROA to fall to 46% by 2023, accompanied by 16% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $521, representing approximately 35% equity upside for the firm.
- However, the firm’s most recent earnings call suggests management may have concerns about growth, movies, and subscriptions.
