Netflix doesnt pay dividends at the moment. The Corporate Valuation model is the most appropriate model to value Netflix. Heres Free Cash Flow projections (in billions of $) needed to value Netflix as a firm. Year FCF 1 8.3 2 9.1 3 10.0 4 11.0 5 12.0 After year 5, Netflixs free cash flow is expected to grow at a 4% constant growth rate in year 5 and beyond. Netflixs WACC is 8%. Netflix has $16.3 billion in debt (market value of debt) and 0.44 billion shares of common stock outstanding? What is your valuation of Netflixs common stock today? Would you recommend buying Netflixs stock today and why? Use current price in #6 to help aid your recommendation.

#6 price: Stock Disney Netflix Current Price $113.85 $317.30 Estimated Price 1 year from now $120.49 $398.27 Annual Expected Dividend (D1) $1.72 $0.00