By: Dividend Sensei
Combining growth, value, and yield is the easiest road to riches you can travel.
Netflix is one of the greatest growth stories of our age, and analysts expect it to continue delivering sensational 36% annual growth for the foreseeable future.
Today, NFLX is about 16% overvalued and offering 11% CAGR risk-adjusted expected returns over the next five years.
But from its fair value of $417 or its good buy price of $333, its consensus return potential is 21% and 25% CAGR, respectively, and 14% and 17% risk-adjusted expected returns, on par with the greatest investors in history.
I’ve set a limit to buy NFLX at its fair value price, a starter position that will let me fully participate in one of the world’s highest quality and fastest growing blue chips’ future growth.