Peter Lynch's formula is:
Netflix Fair Value
= Earnings Growth Rate x TTM EPS
Netflix Fair Value
= 25.00 x 12.50
Netflix Fair Value
= 312.41
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 5Y Avg | |
| Net income | 1,867.00 | 2,761.00 | 5,116.00 | 4,492.00 | 5,407.99 | 3,928.80 |
| YoY growth | 54.17% | 47.88% | 85.30% | -12.20% | 20.39% | 39.11% |
