Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

THE COMPANY IS NETFLIX AND ALL INFORMATION NEEDED CAN BE FOUND ONLINE. Use the company you selected (NETFLIX) for the class assignments.Conduct a case study

THE COMPANY IS NETFLIX AND ALL INFORMATION NEEDED CAN BE FOUND ONLINE.

Use the company you selected (NETFLIX) for the class assignments.Conduct a case study of relative valuation.Analyze the value of your subject company compared to average industry [e.g., XLF] and cohort (2-4 comparable companies) values.

1. Present Relative Valuation (Valuation by Comparables) -

Use appropriate relative valuation models and conduct a Valuation by Comparables of the company that you selected to study (NETFLIX).Select a meaningful Return Ratio and Price Ratio or multiple.Consider using the most recent 3-5 annual or quarterly periods with mean/median and standard deviation.

How do you interpret and explain the results?Why did you choose the ratios used for the comparison?

2.Present Enterprise Value and EV / EBITDA Ratio -

Post the results of the Enterprise Value of the company that you have selected (NETFLIX), along with its EV/EBITDA ratio, P/E Ratio, and PEG Ratio, along with those of a few competitors. Use normalized values - mean/median and standard deviation for industry [e.g., XLF] and cohort.

What do the results mean?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance A Contemporary Application of Theory to Policy

Authors: David N Hyman

11th edition

9781305474253, 1285173953, 1305474252, 978-1285173955

More Books

Students also viewed these Finance questions