Netflix: Outstanding Business At Outstanding Price That Is Not Easy To Find (Rating Upgrade)
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Anton Davydkin211 FollowersFollow5ShareSavePlay(10min)CommentsSummaryNetflix is upgraded to a buy after a previous sell, driven by improved financials and a more attractive valuation.At ~$850, NFLX previously traded at 47x earnings, but relative valuation and fundamentals now signal a buy opportunity.My refined investment approach now treats valuation as complementary, prioritizing both quantitative and fundamental business metrics.Current metrics and historical multiples collectively indicate NFLX is an outstanding business at an outstanding price.hapabapa/iStock Editorial via Getty Images Investment Thesis When I wrote my last review of Netflix (NFLX) in January 2025, the stock was trading in the $85-95 range (before the recent stock split). Back then, primarily for valuation reasons rather than for business fundamentals, IThis article was written byAnton Davydkin211 FollowersFollowI am a qualified economist specializing in economic theory and I have been investing and trading since 2005. Since 2018, I have been investing in US equities. Until 2022, I was part of TopStepTrader, having passed the combine for a funded trader. I am a conservative investor, and for a long time, I have been using my model for evaluating companies, based on a mix of quantitative and fundamental analysis. This model allows me to assess objectively almost any public business and answer the question of investment attractiveness. The exceptions are banks, insurance companies and REITs - my analysis does not cover them. I focus on comprehensive and in-depth analysis of financial statements of mega and large caps, trying to update my vision every quarter. My main investing strategy is to regularly buy shares with a portion of my income that I want to hold forever. I want to combine my writing and research skills with my passion for financial statement analysis to give private investors an independent view of large and well-known companies from a facts and figures perspective. My main motivation is to help private investors make informed and well-founded decisions by demonstrating my approach to analysis.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I use a buy rating, but my approach would be better served by a rating scale from avoid to attractive. Attractive status or buy rating relative to NFLX stock is based solely on an analysis of the financial performance of the business without an assessment of the current value, although this analysis will also be carried out towards the end of the article. My opinion may be useful to investors considering whether to include the stock in a long-term portfolio and hold it for a 3-5 year horizon, and it does not constitute a recommendation or trading instruction.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.