Netflix Stock Market Value
| NFLX Stock | USD 555.04 55.52 9.09% |
| Symbol | Netflix |
Netflix Price To Book Ratio
Is Netflix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Netflix. If investors know Netflix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Netflix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 16.252 | Earnings Share 12.03 | Revenue Per Share 76.371 | Quarterly Revenue Growth 0.125 | Return On Assets 0.0893 |
The market value of Netflix is measured differently than its book value, which is the value of Netflix that is recorded on the company's balance sheet. Investors also form their own opinion of Netflix's value that differs from its market value or its book value, called intrinsic value, which is Netflix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Netflix's market value can be influenced by many factors that don't directly affect Netflix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Netflix's value and its price as these two are different measures arrived at by different means. Investors typically determine if Netflix is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Netflix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Netflix 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Netflix's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Netflix.
| 03/21/2024 |
| 04/20/2024 |
If you would invest 0.00 in Netflix on March 21, 2024 and sell it all today you would earn a total of 0.00 from holding Netflix or generate 0.0% return on investment in Netflix over 30 days. Netflix is related to or competes with News Corp, and Warner Bros. It offers TV series, documentaries, feature films, and mobile games across various genres and languages More
Netflix Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Netflix's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Netflix upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.03 | |||
| Information Ratio | 0.0695 | |||
| Maximum Drawdown | 13.52 | |||
| Value At Risk | (2.50) | |||
| Potential Upside | 3.09 |
Netflix Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Netflix's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Netflix's standard deviation. In reality, there are many statistical measures that can use Netflix historical prices to predict the future Netflix's volatility.| Risk Adjusted Performance | 0.0726 | |||
| Jensen Alpha | 0.1819 | |||
| Total Risk Alpha | (0.05) | |||
| Sortino Ratio | 0.0788 | |||
| Treynor Ratio | 0.3334 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Netflix's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Netflix Backtested Returns
Netflix appears to be very steady, given 3 months investment horizon. Netflix has Sharpe Ratio of 0.1, which conveys that the firm had a 0.1% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Netflix, which you can use to evaluate the volatility of the firm. Please exercise Netflix's Risk Adjusted Performance of 0.0726, mean deviation of 1.48, and Downside Deviation of 2.03 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Netflix holds a performance score of 7. The company secures a Beta (Market Risk) of 0.71, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, Netflix's returns are expected to increase less than the market. However, during the bear market, the loss of holding Netflix is expected to be smaller as well. Please check Netflix's downside variance, as well as the relationship between the daily balance of power and period momentum indicator , to make a quick decision on whether Netflix's current price movements will revert.
Auto-correlation | -0.46 |
Modest reverse predictability
Netflix has modest reverse predictability. Overlapping area represents the amount of predictability between Netflix time series from 21st of March 2024 to 5th of April 2024 and 5th of April 2024 to 20th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Netflix price movement. The serial correlation of -0.46 indicates that about 46.0% of current Netflix price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.46 | |
| Spearman Rank Test | 0.17 | |
| Residual Average | 0.0 | |
| Price Variance | 416.49 |
Netflix lagged returns against current returns
Autocorrelation, which is Netflix stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Netflix's stock expected returns. We can calculate the autocorrelation of Netflix returns to help us make a trade decision. For example, suppose you find that Netflix has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Netflix regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Netflix stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Netflix stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Netflix stock over time.
Current vs Lagged Prices |
| Timeline |
Netflix Lagged Returns
When evaluating Netflix's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Netflix stock have on its future price. Netflix autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Netflix autocorrelation shows the relationship between Netflix stock current value and its past values and can show if there is a momentum factor associated with investing in Netflix.
Regressed Prices |
| Timeline |
Netflix Investors Sentiment
The influence of Netflix's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Netflix. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Netflix's public news can be used to forecast risks associated with an investment in Netflix. The trend in average sentiment can be used to explain how an investor holding Netflix can time the market purely based on public headlines and social activities around Netflix. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Netflix's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Netflix's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Netflix's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Netflix.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Netflix in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Netflix's short interest history, or implied volatility extrapolated from Netflix options trading.
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Try AI Portfolio ArchitectCheck out Netflix Correlation, Netflix Volatility and Netflix Alpha and Beta module to complement your research on Netflix. For more information on how to buy Netflix Stock please use our How to Invest in Netflix guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Complementary Tools for Netflix Stock analysis
When running Netflix's price analysis, check to measure Netflix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Netflix is operating at the current time. Most of Netflix's value examination focuses on studying past and present price action to predict the probability of Netflix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Netflix's price. Additionally, you may evaluate how the addition of Netflix to your portfolios can decrease your overall portfolio volatility.
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Netflix technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.