Summary- Netflix is suitable for Enterprising Investors following the ModernGraham approach.
- The company is currently significantly overvalued.
- The market is implying a very high earnings growth estimate of 73%.
Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk. This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing 5 Undervalued Companies for the Enterprising Investor. By using the ModernGraham methodone can review a company's historical accomplishments and determine an intrinsic value that can be compared across industries. What follows is a specific look at how Netflix Inc. (NFLX) fares in the ModernGraham valuation model.
