Question
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?
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