Analysis of Netflix: Overvalued or Priced For Perfection


There are three types of people: Those who watch Netflix, those who invest in Netflix and those who stay away from Netflix.

Netflix is the largest subscription based video streaming service in the world with 139 Million subscribers including about 60 millions in the US.

The company was founded in 1997 by Reed Hastings who is still CEO to this day. Started as DVD rentals then focussed on streaming services. Netflix has now made its own content through Netflix originals. Netflix is now available in more than 190 countries but is not available in China, Syria, Iran, North Korea and Crimea.

Netflix has a high P/E ratio and a negative free cash flow. It looks like it is too late to invest in Netflix. Netflix is overvalued.

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