Netflix Inc
NASDAQ:NFLX

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Netflix Inc
NASDAQ:NFLX
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Price: 866.73 USD 1.01%
Market Cap: 370.5B USD

ROCE
Return on Capital Employed

23.3%
Current
17%
Average
3%
Industry

ROCE, or Return on Capital Employed, is a financial ratio that measures a company’s profitability in relation to the capital it employs.

ROCE
23.3%
=
EBIT
9.6B
/
Capital Employed
40.7B

ROCE Across Competitors

Netflix Inc
Glance View

Economic Moat
Narrow
Market Cap
370.5B USD
Industry
Media

In the heart of Silicon Valley, amidst its rapid technological evolution, Netflix Inc. emerged from a simple DVD rental service by mail into a streaming colossus that altered the entertainment landscape. Founded in 1997 by Reed Hastings and Marc Randolph, the company's pivot to online streaming in 2007 marked the beginning of a new era. This agile transformation allowed Netflix to capitalize on the burgeoning capabilities of broadband internet, leading to their now-iconic subscription service that offers unlimited streaming of films, TV shows, and documentaries. Distinguished by its user-friendly interface and algorithm-driven recommendations, Netflix hooked audiences worldwide and accrued a massive subscriber base. Netflix's revenue model predominantly hinges on its subscription fees, which deliver a steady and predictable stream of income. These monthly fees form the backbone of its revenue, supporting the company's continued investment in not only buying rights to licensed content but more critically, producing original programming under its streaming brand. Hits like "Stranger Things" and "The Crown" have not only captivated viewers but also cemented Netflix’s reputation as a creative powerhouse in content creation. Netflix's global reach allows for content tailored to local tastes while also offering it across borders, thereby maximizing its investments. The company’s strategy of reinvesting a significant portion of its revenue into fresh content has cemented its competitive edge, driving subscriber growth and maintaining its status as a premiere streamer.

NFLX Intrinsic Value
404.81 USD
Overvaluation 53%
Intrinsic Value
Price
What is Return on Capital Employed?

ROCE, or Return on Capital Employed, is a financial ratio that measures a company’s profitability in relation to the capital it employs.

ROCE
23.3%
=
EBIT
9.6B
/
Capital Employed
40.7B
What is the ROCE of Netflix Inc?

Based on Netflix Inc's most recent financial statements, the company has ROCE of 23.3%.

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