Help with Netflix Inc. DCF
Hey WSO,
I'm pitching Netflix Inc. long this upcoming tuesday at a stock pitch competition. Currently working on the intrinsic value and I'm having a hard time figuring out the change in networking capital yoy for the historical period. Link to 10k is here
If anyone wants to help lmk, I'd be down for google hangout / talk too.
Best,
Owen
It would help if you told us what part you cannot solve. Change is working capital is simply that: the change in the working capital year over year. You just need to solve for the working capital.
This is a pretty open and shut case. Change in WC: $638,317, $380,850, $329,162.00, $(41,893.00) for 2015, 2014, 2013, and 2012, respectively. You just pull it from the most recent 10-k and subtract the previous year's working capital.
Thanks guys.
To clarify - wasn't sure if the 10k calculated Working Capital as (non-cash current assets - non interest current liabilities), but I'll go with the numbers it gives in the working capital section. Thanks guys.
don't do it off change in working cap. do it off balance sheet figures calc'ed using days XX outstanding and then make the CFS change in each line item on a period over period basis.
i would not pick NFLX as a long, though...
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