Fundamental analysis of Netflix Inc. Stocks

Bc. ARTEM STEPANOV

Master's thesis

Abstract:

Recently decision about the saving and raise of money is crucial. Securities and mainly stocks are the most common instruments for investing. Objective and clear analysis is an important requirement for a successful investment. For long-term strategy specialists use a fundamental analysis of stocks. Consequently, stock of the Netflix Inc. which is a developed company with a high potential in streaming video service sector is the best choice. This company is a pioneer of a streaming service which became extremely popular and highly demanded. The aim of the thesis is the evaluating the fair value of Netflix Inc., stock and compare it with the market price to make a decision about investment. The thesis consists of three main parts: methodology, literature review and practical part. All formulas, evaluation indicators and their description, models used for evaluating the fair value of the stock are stated in the methodological part. The definitions of financial terms, description of purchasing, clearing, settlement processes and other theoretical knowledge about fundamental analysis are included in literature review. The practical part consists of calculations of ratios, indexes, fair value of the stock which are used in the fundamental analysis. Results of the analysis are compared and taken into consideration for the determining of the final decision.

Keywords

fundamental analysis, stock, security, streaming, stock exchange, investment, video streaming, Netflix, fair value

Language used: English

Date on which the thesis was submitted / produced: 29. 11. 2020

Thesis defence

• Supervisor: Ing. Karel Malec, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management