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.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683