Value of Operations				
Netflix, Inc.				
				
(In Millions)				
				
				
	Value of operations		Actual	Projected
			2013	
	Long-term growth rate			
	Weighted Avg. Cost of Cap. (WACC)			
	Free Cash Flow			
				
	( CFn x (1+ g) ) / (r - g)			
				
	Horizon Value			#DIV/0!
				
	PV of the horizon value and of the free cash flows.			
				
	PV of Horizon Value @ WACC		#DIV/0!	
	PV of free cash flows @ WACC		 $-   	
				
	Value of Operations		#DIV/0!	
				
Weighted Average Cost of Capital											
Netflix, Inc.											
											
											
Formula											
											
	WACC =	Weighted average cost of capital									
		rD (1- Tc )*( D / V )+ rE *( E / V ) 									
											
	Where:										
											
	rD 	=	 The required return of the firm's Debt financing								
	(1-Tc) 	=	 The Tax adjustment for interest expense								
	(D/V) 	=	 (Debt/Total Value)								
	rE	=	 the firm's cost of equity								
	(E/V) 	=	 (Equity/Total Value)								
											
WACC Calculation											
	rD 	=									
	(1-Tc) 	=									
	(D/V) 	=	#DIV/0!								
	rE	=	0.00%								
	(E/V) 	=	#DIV/0!								
											
	Total Debt D	=									
	Total Equity E	=									
	Total Firm Value	=									
	rE = rf+B(rM-Rf)	=									
	Risk Free rate rf	=									
	Historical Mkt return rm	=									
	Beta	=		Average Beta of 2.03 and 0 as quoted below.							
											
	WACC	=	#DIV/0!								
											
											
											
											
Additional Data											
											
											
											
											
											
											
											
											
											
											
											
											
Last Sale:	$417.83 										
Share Volume:	4,179,281										
Today's High:	$421.74 										
Best Bid:	N/A										
52 Week High:	$458 										
Earnings Per Share (EPS):	$2.66 										
NASDAQ Official Open Price:	$415.52 										
NASDAQ Official Close Price:	$417.83 										
Net Change:	2.63 ? 0.63%										
Previous Close:	$415.20 										
Today's Low:	$411.61 										
Best Ask:	N/A										
52 Week Low:	$205.75 										
P/E Ratio:	157.08										
Date of Open Price:	30-May-14										
Date of Close Price:	30-May-14										
											
											
 http://www.nasdaq.com/symbol/nflx#ixzz33QWjU6c2											
											
											
											
											
											
	Source: nasdaq.com						Source:http://www.google.com/finance?cid=4592563				
				
				
Instrinsic Value Using the Discount Cash Flow Method														
Netflix, Inc.														
														
Cash Flow Statement ( in millions)														
														
	Actuals													
	2009	2010	2011	2012	2013	2014 (Q1)								
Cash from Operating Activities														
Capital Expenditure														
Free Cash Flow	 $-   	 $-   	 $-   	 $-   	 $-   	 $-   								
Capital Expenditure Adjustments														
Free Cash Flow after Adjustments	 $-   	 $-   	 $-   	 $-   	 $-   	 $-   								
														
Growth (excluding adjustments)		#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!								
Average Growth (2009-2013) (1)					#DIV/0!									
														
														
														
Discount Cash Flow Formula														
DCF= CF1/(1+r)^1+cf2/(1+r)^2+…+CFn/(1+r)^n														
Where,														
 CF= Cash Flow 														
 r= discount race (WACC) 														
														
(1) Growth is calculated by taking the weighted average of FCF changes from 2009-2013														
Terminal Growth Rate	#DIV/0!													
														
(2)  2013 FCF forecast														
														
2012 Cash Flow from operations Actuals	 $-   													
2013 Cash Flow from operations Actuals	 $-   													
2013 Free Cash Flows	 $-   													
														
3) WACC	#DIV/0!													
														
														
Discount Free Cash Flow Calculation	( in millions)													
	 Yr1  	 Yr2 	 Yr3 	 Yr4 	 Yr5 	 Yr6 	 Yr7 	 Yr8 	 Yr9 	 Yr10 				
 DFCF  	 -   	 -   	 -   	 -   	 -   	 -   	 -   	 -   	 -   	 -   				
 Discount Factor (@ 11.24% =r=WACC)= (1+r)^n 	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!				
 Discounted FCF 	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!				
														
Horizon Value														
Formula														
( CFn x (1+ g) ) / (r - g)														
g=	#DIV/0!													
r=	#DIV/0!													
Horizon Value Calculation	#DIV/0!													
														
Present Value of Cash Flow in Year N=10														
Formula														
CF at Year N / (1 + R)^N 														
														
PV of Cash Flow in Year 10 Calculation	#DIV/0!													
														
														
Netfiix Instrinsic Value 														
														
DFCF YR1	#DIV/0!													
DFCF YR2	#DIV/0!													
DFCF YR3	#DIV/0!													
DFCF YR4	#DIV/0!													
DFCF YR5	#DIV/0!													
DFCF YR6	#DIV/0!													
DFCF YR7	#DIV/0!													
DFCF YR8	#DIV/0!													
DFCF YR9	#DIV/0!													
DFCF YR10	#DIV/0!													
PV of CF YR10	#DIV/0!													
	#DIV/0!													
														
Intrinsic Value	#DIV/0!													
/  Shares Outstanding														
= Price Estimate per Share	#DIV/0!													
														
				
				
Market Value				
Netflix, Inc.				
				
(In Millions)				
				
Firm's Market Value	As of 			
				
Firm's Market Value = Total of Outstanding share x market value				
		Outstanding Shares		
		Stock Price		
Firm's Market Value 	$0.00			
				
				
Firm's Market Value  	To Date			
				
Firm's Market Value = Total of Outstanding share x market value				
		Outstanding Shares		
		Stock Price		
Firm's Market Value 	$0.00