| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 591.90 | 742 |
| Intrinsic value (DCF) | 602.47 | 757 |
| Graham-Dodd Method | 137.70 | 96 |
| Graham Formula | 404.80 | 476 |
Netflix, Inc. (NFC.DE) is a global leader in the streaming entertainment industry, offering a vast library of TV series, documentaries, feature films, and mobile games across multiple genres and languages. Headquartered in Los Gatos, California, Netflix serves approximately 222 million paid members in 190 countries, making it one of the most widely used streaming platforms worldwide. The company operates primarily through its subscription-based model, allowing members to stream content on various internet-connected devices, including smart TVs, digital video players, and mobile devices. Additionally, Netflix maintains a DVD-by-mail service in the U.S. As part of the Communication Services sector, Netflix continues to dominate the digital entertainment space, leveraging its original content production and technological innovation to stay ahead of competitors. With a market capitalization exceeding €445 billion, Netflix remains a key player in the evolving media landscape.
Netflix presents a compelling investment opportunity due to its strong market position, extensive global subscriber base, and consistent revenue growth. The company's ability to produce high-quality original content and expand into new markets enhances its long-term growth potential. However, risks include increasing competition from other streaming services, rising content production costs, and potential subscriber saturation in mature markets. With a beta of 1.585, Netflix is more volatile than the broader market, reflecting its growth-oriented but high-risk profile. The absence of dividends may deter income-focused investors, but the company's strong operating cash flow (€7.36 billion) and solid profitability (net income of €8.71 billion) underscore its financial health.
Netflix's competitive advantage lies in its first-mover status in the streaming industry, a vast and diverse content library, and a strong brand reputation. The company invests heavily in original programming, which differentiates it from competitors and reduces reliance on licensed content. Its global reach and localized content strategy allow it to penetrate diverse markets effectively. However, Netflix faces intense competition from both traditional media companies and tech giants entering the streaming space. Competitors like Disney+ and Amazon Prime Video benefit from integrated ecosystems, while others like HBO Max leverage premium content libraries. Netflix's lack of a diversified revenue stream (unlike Amazon or Apple) makes it more vulnerable to subscriber churn. Nevertheless, its technological infrastructure, recommendation algorithms, and data-driven content decisions provide a sustainable edge. The company's ability to maintain subscriber growth while managing content costs will be critical in sustaining its leadership position.