(in million dollars)

2019 2020
Revenues 20,156,447 24,996,056
Cost of revenues 12,440,213 15,276,319
Marketing 2,652,462 2,228,362
Technology and development 1,545,149 1,829,600
General and administrative 914,369 1,076,486
Operating income 2,604,254 4,585,289
Other income (expense):
Interest expense -626,023 -767,499
Interest and other income (expense) 84,000 -618,441
Income before income taxes 2,062,231 3,199,349
Provision for income taxes -195,315 -437,954
Net income 1,866,916 2,761,395
 2021 2022
29,697,844 31,615,550
17,332,683 19,168,285
2,545,146 2,530,502
2,273,885 2,711,041
1,351,621 1,572,891
6,194,509 5,632,831

-765,620 -706,212
411,214 337,310
5,840,103 5,263,929
-723,875 -772,005
5,116,228 4,491,924
(in million dollars)
2019 2020
Assets
Current Assets :
Cash and cash equivalents 5,018,437 8,205,550
Short term investments - 0
Other current assets 1,160,067 1,556,030
Total current assets 6,178,504 9,761,580
Content assets, net 24,504,567 25,383,950
Property and equipment, net 565,221 960,183
Other non-current assets 2,727,420 3,174,646
Total assets 33,975,712 39,280,359

Liabilities and Stockholders’ Equity

Current liabilities:
Current content liabilities 4,413,561 4,429,536
Accounts payable 674,347 656,183
Accrued expenses and other liabilities 843,043 1,102,196
Deferred revenue 924,745 1,117,992
Short-term debt - 499,878
Total current liabilities 6,855,696 7,805,785
Non-current content liabilities 3,334,323 2,618,084
Long-term debt 14,759,260 15,809,095
Other non-current liabilities 1,444,276 1,982,155
Total liabilities 26,393,555 28,215,119
Shareholders’ equity:
Common stock 2,793,929 3,447,698
Treasury stock - 0
Accumulated other comprehensive income (loss) -23,521 44,398
Retained earnings 4,811,749 7,573,144
Total shareholders’ equity 7,582,157 11,065,240
Total liabilities and shareholders’ equity 33,975,712 39,280,359
 2021 2022

6,027,804 5,147,176
0 911,276
2,042,021 3,208,021
8,069,825 9,266,473
30,919,539 32,736,713
1,323,453 1,398,257
4,271,846 5,193,325
44,584,663 48,594,768

4,292,967 4,480,150
837,483 671,513
1,449,351 1,514,650
1,209,342 1,264,661
699,823 0
8,488,966 7,930,974
3,094,213 3,081,277
14,693,072 14,353,076
2,459,164 2,452,040
28,735,415 27,817,367

4,024,561 4,637,601
-824,190 -824,190
-40,495 -217,306
12,689,372 17,181,296
15,849,248 20,777,401
44,584,663 48,594,768
(in million dollars)

2019

Streaming revenues 19,859,230

DVD revenues 297,217
Growth %
Total revenues 20,156,447

United States and Canada (UCAN)

Revenues 10,051,208
Average yearly revenue per membership 150.84
Average paid membership 66,634.90
Growth %

Europe, Middle East, and Africa (EMEA)

Revenues 5,543,067
Average yearly revenue per membership 123.96
Average paid membership 44,716.58
Growth %

Latin America (LATAM)

Revenues 2,795,434
Average yearly revenue per membership 98.52
Average paid membership 28,374.28
Growth %

Asia-Pacific (APAC)

Revenues 1,469,521
Average yearly revenue per membership 110.88
Average paid membership 13,253.26
Growth %
 2020 2021 2022 2023 2024

24,756,675 29,515,496 31,469,852 34,082,594 39,702,400

239,381 182,348 145,698 116,414 93,016
-19% -24% -20% -20% -20%
24,996,056 29,697,844 31,615,550 34,199,008 39,795,416

11,455,396 12,972,100 14,084,643 12,952,811 13,779,506

159.84 174.72 190.32 168.93 173.45
71,667.89 74,245.08 74,005.06 76,675.61 79,442.53
7.55% 3.60% -0.32% 3.61% 3.61%

7,772,252 9,699,819 9,745,015 11,502,855 13,667,947

128.64 139.56 131.88 131.01 131.01
60,418.63 69,502.86 73,893.05 87,801.35 104,327.51
35% 15% 6% 19% 19%

3,156,727 3,576,976 4,069,973 4,300,364 4,836,070

89.4 92.76 101.76 95.61 95.61
35,310.15 38,561.62 39,995.80 44,978.18 50,581.22
24% 9% 4% 12% 12%

2,372,300 3,266,601 3,570,221 5,326,563 7,418,875

109.44 114.72 102 109.26 109.26
21,676.72 28,474.56 35,002.17 48,751.27 67,901.11
64% 31% 23% 39% 39%
 2025 2026

46,568,995 54,933,048
74,321 59,383
-20% -20%
46,643,316 54,992,432

Average Monthly Revenues

2019 2020 2021 2022
14,556,864 15,127,695 12.57 13.32 14.56 15.86
176.86 177.39
82,309.30 85,279.52
3.61% 3.61%

Average Monthly Revenues

2019 2020 2021 2022
16,240,558 19,297,390 10.33 10.72 11.63 10.99
131.01 131.01
123,964.26 147,297.08
19% 19%

Average Monthly Revenues

2019 2020 2021 2022
5,438,512 6,116,000 8.21 7.45 7.73 8.48
95.61 95.61
56,882.25 63,968.21
12% 12%

Average Monthly Revenues

2019 2020 2021 2022
10,333,062 14,391,963 9.24 9.12 9.56 8.5
109.26 109.26
94,573.15 131,722.16
39% 39%
(in million dollars)

2019 2020

Cost of revenues 12,336,634 15,160,609

Growth % (% of revenues) 61% 61%

Marketing 2,652,462 2,228,362

Growth % (% of revenues) 13% 9%

Technology and development 1,545,149 1,829,600

Growth % (% of revenues) 8% 7%

General and administrative 914,369 1,076,486

Growth % (% of revenues) 5% 4%

Other current assets 1,160,067 1,556,030

Growth % (% of revenues) 6% 6%

Accounts payable 674,347 656,183

Average Payable Days 19.95 15.80

Accrued expenses and other liabilities 843,043 1,102,196

Growth % (% of revenues) 4% 4%

Deferred revenue 924,745 1,117,992

Growth % (% of revenues) 5% 4%
 2021 2022 2023 2024 2025 2026

17,124,271 18,831,603 20,440,956 23,785,963 27,878,995 32,869,313

58% 60% 60% 60% 60% 60%

2,545,146 2,530,502 3,304,338 3,845,067 4,506,717 5,313,416

9% 8% 10% 10% 10% 10%

2,273,885 2,711,041 2,668,984 3,105,743 3,640,172 4,291,760

8% 9% 8% 8% 8% 8%

1,351,621 1,572,891 1,570,528 1,827,533 2,142,010 2,525,429

5% 5% 5% 5% 5% 5%

2,042,021 3,208,021 2,479,717 2,885,504 3,382,035 3,987,416

7% 10% 7% 7% 7% 7%

837,483 671,513 932,666 1,085,290 1,272,044 1,499,739

17.85 13.02 16.65 16.65 16.65 16.65

1,449,351 1,514,650 1,561,453 1,816,973 2,129,634 2,510,836

5% 5% 5% 5% 5% 5%

1,209,342 1,264,661 1,464,811 1,704,516 1,997,825 2,355,434

4% 4% 4% 4% 4% 4%
Formula to calculate account payable days= Current year account payables*365
Current year cost of revenues
 (in million dollars)
PP&E
2019 2020
Opening Balance 565,221
Add:- Capex 510,672
Less:- Depreciation 103,579 115,710
Closing Balance 565,221 960,183

Useful Life (in years) 9

Content Assets
2019 2020
Opening Balance 24,504,567
Add/Less:- Increase/Decrease in content assets 11,686,295
Less:- Amortization 10,806,912
Closing Balance 24,504,567 25,383,950

Useful Life (in years) 3.35

Debt
2019 2020
Opening Balance 14,759,260
Add/Less:- Increase/Decrease in debt 1,049,835
Closing Balance 14,759,260 15,809,095

Interest Expense -626,023 -767,499

Interest Rate -4% -5%
 2021 2022 2023 2024 2025
960,183 1,323,453 1,398,257 1,560,712 1,700,812
571,682 411,486 411,486 411,486 411,486
208,412 336,682 249,031 271,386 290,664
1,323,453 1,398,257 1,560,712 1,700,812 1,821,634

7 5 7 7 7

2021 2022 2023 2024 2025

25,383,950 30,919,539 32,736,713 34,182,246 35,215,199
17,765,956 15,843,306 15,098,519 15,098,519 15,098,519
12,230,367 14,026,132 13,652,986 14,065,566 14,360,388
30,919,539 32,736,713 34,182,246 35,215,199 35,953,330

3.53 3.33 3.50 3.50 3.50

2021 2022 2023 2024 2025

15,809,095 14,693,072 14,353,076 14,353,076 14,353,076
-1,116,023 -339,996 0 0 0
14,693,072 14,353,076 14,353,076 14,353,076 14,353,076

-765,620 -706,212 -716,339 -716,339 -716,339

-5% -5% -5% -5% -5%
 2026
1,821,634
411,486
307,290
1,925,830

2026
35,953,330
15,098,519
14,571,063
36,480,786

3.50

2026
14,353,076 Principal Amount at Par
0 December 31, December 31,
14,353,076 2022 2021 Issuance Date
5.500% Senior Notes - 700 Feb-15
5.750% Senior Note 400 400 Feb-14
-716,339 5.875% Senior Notes 800 800 Feb-15
-5% 3.000% Senior Notes (1) 503 535 Apr-20
3.625% Senior Notes 500 500 Apr-20
4.375% Senior Notes 1,000 1,000 Oct-16
3.625% Senior Notes (1) 1,391 1,480 May-17
4.875% Senior Notes 1,600 1,600 Oct-17
5.875% Senior Notes 1,900 1,900 Apr-18
4.625% Senior Notes (1) 1,177 1,252 Oct-18
6.375% Senior Notes 800 800 Oct-18
3.875% Senior Notes (1) 1,284 1,366 Apr-19
5.375% Senior Notes 900 900 Apr-19
3.625% Senior Notes (1) 1,177 1,252 Oct-19
4.875% Senior Notes 1,000 1,000 Oct-19
14,432 15,485
 700 February 2015 February 2022 $
400 400 February 2014 March 2024
800 800 February 2015 February 2025 811 899
 Level 2 Fair Value as of
December 31, December 31,
Maturity 2022 2021
Feb-22 - 704
Mar-24 404 437
Feb-25 811 899
Jun-25 495 581
Jun-25 479 529
Nov-26 980 1,111
May-27 1,338 1,702
Apr-28 1,557 1,829
Nov-28 1,930 2,293
May-29 1,151 1,565
May-29 830 999
Nov-29 1,201 1,651
Nov-29 885 1,068
Jun-30 1,078 1,493
Jun-30 944 1,169
14,083 18,030
015 February 2022 $— $ 704
014 March 2024 404 437
ebruary 2025 811 899
(in million dollars)
2019 2020
Streaming revenues 19,859,230 24,756,675
DVD revenues 297,217 239,381
Total revenues 20,156,447 24,996,056
Cost of revenues 12,336,634 15,160,609
Gross Margin 7,819,813 9,835,447
Operating Expenses:-
Marketing 2,652,462 2,228,362
Technology and development 1,545,149 1,829,600
General and administrative 914,369 1,076,486
EBITDA 2,707,833 4,700,999
Depreciation 103,579 115,710
EBIT 2,604,254 4,585,289
Interest -626,023 -767,499
Interest and other income (expense) 84,000 -618,441
EBT 2,062,231 3,199,349
Taxes -195,315 -437,954
Tax Rate % -9% -14%
Net Income 1,866,916 2,761,395
 2021 2022 2023 2024 2025
29,515,496 31,469,852 34,082,594 39,702,400 46,568,995
182,348 145,698 116,414 93,016 74,321
29,697,844 31,615,550 34,199,008 39,795,416 46,643,316
17,124,271 18,831,603 20,440,956 23,785,963 27,878,995
12,573,573 12,783,947 13,758,052 16,009,453 18,764,321

2,545,146 2,530,502 3,304,338 3,845,067 4,506,717

2,273,885 2,711,041 2,668,984 3,105,743 3,640,172
1,351,621 1,572,891 1,570,528 1,827,533 2,142,010
6,402,921 5,969,513 6,214,202 7,231,109 8,475,421
208,412 336,682 249,031 271,386 290,664
6,194,509 5,632,831 5,965,171 6,959,723 8,184,757
-765,620 -706,212 -716,339 -716,339 -716,339
411,214 337,310 0 0 0
5,840,103 5,263,929 5,248,833 6,243,385 7,468,418
-723,875 -772,005 -769,791 -915,651 -1,095,314
-12% -15% -15% -15% -15%
5,116,228 4,491,924 4,479,042 5,327,733 6,373,104
 2026
54,933,048
59,383
54,992,432
32,869,313
22,123,119

5,313,416
4,291,760
2,525,429
9,992,515
307,290
9,685,225
-716,339
0
8,968,886
-1,315,372
-15%
7,653,514
(in million dollars)

2019
Assets
Current Assets :
Cash and cash equivalents 5,018,437
Short term investments -
Other current assets 1,160,067
Total current assets 6,178,504
Content assets, net 24,504,567
Property and equipment, net 565,221
Other non-current assets 2,727,420
Total assets 33,975,712

Liabilities and Stockholders’ Equity

Current liabilities:
Current content liabilities 4,413,561
Accounts payable 674,347
Accrued expenses and other liabilities 843,043
Deferred revenue 924,745
Short-term debt -
Total current liabilities 6,855,696
Non-current content liabilities 3,334,323
Long-term debt 14,759,260
Other non-current liabilities 1,444,276
Total liabilities 26,393,555
Shareholders’ equity:
Common stock 2,793,929
Treasury stock -
Accumulated other comprehensive income (loss) -23,521
Retained earnings 4,811,749
Total shareholders’ equity 7,582,157
Total liabilities and shareholders’ equity 33,975,712

CHECK 1
 2020 2021 2022 2023 2024 2025 2026

8,205,550 6,027,804 5,147,176 9,254,640 13,651,382 19,461,727 26,844,714

0 0 911,276 911,276 911,276 911,276 911,276
1,556,030 2,042,021 3,208,021 2,479,717 2,885,504 3,382,035 3,987,416
9,761,580 8,069,825 9,266,473 12,645,633 17,448,162 23,755,037 31,743,406
25,383,950 30,919,539 32,736,713 34,182,246 35,215,199 35,953,330 36,480,786
960,183 1,323,453 1,398,257 1,560,712 1,700,812 1,821,634 1,925,830
3,174,646 4,271,846 5,193,325 5,193,325 5,193,325 5,193,325 5,193,325
39,280,359 44,584,663 48,594,768 53,581,916 59,557,498 66,723,326 75,343,347

4,429,536 4,292,967 4,480,150 4,480,150 4,480,150 4,480,150 4,480,150

656,183 837,483 671,513 932,666 1,085,290 1,272,044 1,499,739
1,102,196 1,449,351 1,514,650 1,561,453 1,816,973 2,129,634 2,510,836
1,117,992 1,209,342 1,264,661 1,464,811 1,704,516 1,997,825 2,355,434
499,878 699,823 0 0 0 0 0
7,805,785 8,488,966 7,930,974 8,439,080 9,086,929 9,879,653 10,846,159
2,618,084 3,094,213 3,081,277 3,081,277 3,081,277 3,081,277 3,081,277
15,809,095 14,693,072 14,353,076 14,353,076 14,353,076 14,353,076 14,353,076
1,982,155 2,459,164 2,452,040 2,452,040 2,452,040 2,452,040 2,452,040
28,215,119 28,735,415 27,817,367 28,325,473 28,973,322 29,766,046 30,732,552

3,447,698 4,024,561 4,637,601 4,637,601 4,637,601 4,637,601 4,637,601

0 -824,190 -824,190 -824,190 -824,190 -824,190 -824,190
44,398 -40,495 -217,306 -217,306 -217,306 -217,306 -217,306
7,573,144 12,689,372 17,181,296 21,660,338 26,988,071 33,361,175 41,014,689
11,065,240 15,849,248 20,777,401 25,256,443 30,584,176 36,957,280 44,610,794
39,280,359 44,584,663 48,594,768 53,581,916 59,557,498 66,723,326 75,343,347

TRUE TRUE TRUE TRUE TRUE TRUE TRUE

(in million dollars)
2019
EBIT
Operating Tax
Operating Tax rate %
NOPAT
Amortization
Depreciation
Gross Cashflow
Account Payables
Deffered Revenue
Current content liabilities
Accrued expenses & other liabilities
Other current assets
Investments in Working Cpital
Content assets
PP&E
Capex
Extraordinary items
UFCF
Debt taken/paid
Interest expenses
Difference between operating and actual taxes
Net Cash Flow
2020 2021 2022 2023 2024 2025 2026
5,965,171 6,959,723 8,184,757 9,685,225
-874849 -1,020,709 -1,200,372 -1,420,430
-15% -15% -15% -15%
5,090,322 5,939,014 6,984,385 8,264,795
13,652,986 14,065,566 14,360,388 14,571,063
249,031 271,386 290,664 307,290
18,992,340 20,275,966 21,635,437 23,143,148
261,153 152,624 186,754 227,695
200,150 239,705 293,309 357,609
0 0 0 0
46,803 255,520 312,660 381,203
728,304 -405,787 -496,531 -605,381
20,228,750 20,518,028 21,931,630 23,504,273
-15,098,519 -15,098,519 -15,098,519 -15,098,519
-411,486 -411,486 -411,486 -411,486
4,718,745 5,008,023 6,421,625 7,994,268
0 0 0 0
4,718,745 5,008,023 6,421,625 7,994,268
0 - - -
-716,339 -716,339 -716,339 -716,339
105,058 105,058 105,058 105,058
4,107,464 4,396,742 5,810,345 7,382,988
(in million dollars)
Risk Free Rate 3.95%
Market Risk Premium 5.60%
Beta 1.21%

Cost of Equity 5.65%

Cost of Debt 4.88%

Equity 44,610,794
Debt 14,353,076

Equity/(Equity+Debt) 0.756578462004
Debt/(Equity+Debt) 0.24

WACC 5.46%
(in million dollars) 2023 2024 2025
UFCF 4718744.81102514 5008022.6957 6421625.3082
Discounting Factor 0.95 0.90 0.85
No. of years 1 2 3

PV of UFCF 4,474,454 4,502,911 5,475,019

SUM of PV 20,915,366

Terminal Value ₹ 152,207,487.61

PV of Terminal Value 1216787485029775

Enterprise Value 1,216,787,505,945,140

Debt 14,353,076
Cash 26,844,714
Equity Value 1,216,787,518,436,780
 2026
7994268.2461
0.81
4

6,462,982
Forecasted Revenues
S.no. Assumption
i. Growth % of DVD Revenues is fixed at 20% forecasted because it is assumed there will be old age people
ii. Growth % in all continents is taken as average of its last 3 years so as to assume an average growth/decli

Other Forecasted Items

S.no. Assumption
i. Growth % in other related items is taken as average of its last 3 years so as to assume an average growth
ii. All the items in other related items except account payables are forecasted on the basis of % of revenue

Schedules
S.no. Assumption
i. In PP&E and Content assets average of useful life of given data is used to make growth/decline releve
ii. In Debt average of interet of given data is used to make growth/decline relevent for future years
iii. In PP&E and Content assets depreciation and amortization is taken from Cash Flow Statements

Forecasted P&L
S.no. Assumption
i. Interest and other income (expense) are considered as 0 for future years beacause we don’t have any re
ii. Tax Rate % is considered as 15% future years because it is assumed that taking high tax rate among given

Forecasted Balance sheet

S.no. Assumption
i. Short term investments,Other non-current assets,current content liabilities, short term debts,Non-curren
ii. Common stock,Treasury stock,Accumulated other comprehensive income (loss) are constant on the bas

Cashflow
S.no. Assumption
i. Current content liabilities,Extraordinary items,Debt taken/paid is considered to be 0 as we don’t have re
ed there will be old age people who will prefer the DVD's like the people aged above 70
sume an average growth/decline in upcoming years with given data projection

to assume an average growth/decline in upcoming years with given data projections

d on the basis of % of revenues and account payables is forecasted on thhe basis of account payable days

o make growth/decline relevent for future years

relevent for future years
ash Flow Statements

eacause we don’t have any relevant informaton regarding them

king high tax rate among given tax rates would lead to low projected net income for future years

s, short term debts,Non-current content liabilities,Long-term debt,Other non-current liabilities are constant on the basis of 2022 because w
(loss) are constant on the basis of 2022 because we don’t have any relevant information regarding them

ed to be 0 as we don’t have relevant information regarding them

on the basis of 2022 because we don’t have any relevant information regarding them
Source of Financial Statements is from Netflix 10 K Reoprt from Google
Source of Risk Free Rate,Market Risk Premium,Beta is Google