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Netflix, Inc. provides entertainment services. The company offers television (TV) series, documentaries, feature films, and games across various genres and languages. It also provides members the abil...
The following section summarizes insights on Netflix Inc's EBITDA:
We've identified the following companies as similar to Netflix Inc because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.
To view the full list of supported financial metrics please see Complete Metrics Listing.
Metrics similar to EBITDA in the financials category include:
Income before interest, taxes, depreciation and amortization adjusted for certain one-time items.
EBITDA for Netflix is calculated as follows:
Earnings Before Taxes [ 9.966 B ]
(+) Net Interest Expenses [ 424.7 M ]
(+) Non Operating Expenses [ 27.224 M ]
(+) Depreciation and Amortization [ 328.9 M ]
(+) Unusual Expenses [ zero ]
(=) EBITDA [ 10.747 B ]
EBITDA is defined as Earnings before Interest, Taxes, Depreciation and Amortization excluding unusual items. It is a commonly used metric in valuation as a proxy for operating profitability. EBITDA gives us a clearer picture of profitability when comparing companies with different capital structures. So why is it useful to use EBITDA and ignore interest, taxes, depreciation, and amortization when comparing the performance of different companies?
Two companies that are otherwise similar may have different levels of debt. The company with higher debt will likely have higher interest expense and lower Net Income. Since EBITDA ignores interest expense, it is not directly affected by management’s financing decisions.
The amount of a tax a company pays each year is determined by a wide range of factors that does not always reflect the profitability of the company since the taxes a company is subject to reflects factors like political jurisdictions, past loss carryforwards, research and development tax credits, and depreciation on capital assets to name a few.
Two companies that are otherwise similar may purchase capital assets (machines, vehicles, buildings, etc.) at different times which can impact depreciation. Ignoring depreciation and amortization allows us to normalize income for these differences.
Unusual items consist of income or expenses included in a company’s income statement from events, which are unusual and infrequent in nature.
EBITDA is most useful in ratios to benchmark profitability, growth, credit risk, and relative valution. Popular EBITDA benchmark metrics include ebitda margin, ebitda minus capex margin, ebitda growth, and ev / ebitda.
The chart above depicts the distribution of ebitda for companies operating in the Communication Services sector in the Developed economic region. Over 1,555 companies were considered in this analysis, and 1,498 had meaningful values. The average ebitda of companies in the sector is 101.5 M with a standard deviation of 363 M.
Netflix Inc's EBITDA of 10.747 B is significantly outside the interquartile range and is excluded from the distribution. The following table provides additional summary stats:
Economic Risk Region | Developed |
Total Constituents | 1,560 |
Included Constituents | 1,498 |
Min | -25.498 M |
Max | 3.345 B |
Median | 0 K |
Mean | 101.5 M |
Standard Deviation | 363 M |
You can find companies with similar ebitda using this stock screener.