【CFA Japan Joint Seminar with HKUST-NYU Stern】
Valuing a High-Growth Subscription-Based Business：Netflix Valuation in the COVID-19 Era
Date： June 14 (Wed) 2023, 18:30-20:30
Seminar Schedule：
18:30-19:15 Registration and Networking Reception (Buffet dinner sponsored by HKUST)
19:15-20:30 SeminarVenue： Room1-3, FINE TOKYO, 5th Floor, South Tower, Otemachi Financial City, 1-9-7 Otemachi, Chiyoda-ku, Tokyo
http://www.fine-tokyo.com/en/access/
(For those who take the subways to come: From Tokyo Metro Otemachi Station, please use the passageway directly connecting to the first basement floor of the building. Then take the South Elevator from the first basement floor or the first floor to the fifth floor.
For those who come from the surface street: Please enter the SouthTower, Otemachi Financial City from FINE TOKYO Entrance that is across the street of Sankei Building.
Then take the South Elevator from the first floor to the fifth floor.)Language：English
Speaker：Professor Alminas Žaldokas, Associate Professor of Finance at HKUST Business School (https://fina.hkust.edu.hk/faculty/directory/alminas)
Fee：Free for CFA Society Japan Members, CFA Program Candidates, Corporate Sponsors and HKUST & NYU related
Specialty Focus Areas : Financial Analysis (PL credit eligible)PL Credit : 1.25
Outline
On April 21, 2020, Netflix, Inc. (Nasdaq: NFLX), the world’s leading movie and TV-show streaming entertainment service company, announced it had added 15.8 million new subscribers as a large fraction of the population was confined at home due to the COVID-19 pandemic. At the same time, Netflix stock was up +34% year to date, making it one of the few companies to see its shares appreciate since the coronavirus crisis started but the company was still recording negative free cash flows due to large investments in new content, and it was already trading at a higher multiple than other big tech peers. What should have been the valuation of Netflix stock price?
In this interactive seminar, we will explore the challenges of valuing young, rapidly growing but often still unprofitable technology firms. We will use “Netflix, Inc. in the COVID-19 Era: Valuing a High-Growth Subscription-Based Business” (University of Virginia Darden School) to:
· illustrate the mechanics and highlight the challenges of discounted cash flow (DCF) valuation,
· suggest an alternative valuation framework based on “unit economics” and “customer lifetime value” (LTV),
· evaluate whether customer stock price is reasonable given customer lifetime value and total addressable market.
Speaker
Professor Alminas Žaldokas is currently an Associate Professor in Finance at the Hong Kong University of Science and Technology (HKUST). Alminas Žaldokas has been teaching at the HKUST since 2012 with the primary focus on corporate finance and corporate valuation. Apart from the undergraduate and MSc courses, he has also been teaching in the HKUST-NYU Stern MS in Global Finance, HKUST bilingual EMBA, and Kellogg-HKUST EMBA programs. He has also previously taught corporate valuation for the MBAs at the University of Texas in Austin McCombs School of Business in 2017/8 academic year.
Professor Žaldokas got his PhD in Finance at INSEAD in 2012. His previous academic degrees include MSc in Finance and Economics from London School of Economics and BSc in Business and Economics from Stockholm School of Economics in Riga. Prior to his academic career, Alminas Žaldokas was an investment banking consultant in a M&A advisory boutique Prime Investment based in Lithuania. Over his practice, he engaged in a number of corporate finance assignments in Lithuania, Latvia, Belarus, facilitating cross-border transactions and attracting international investment to local family firms.
Professor Žaldokas’s research focuses on the interaction between firm decisions in the financial and in the product markets. In particular, he studies corporate finance decision that relate to the firm investment in innovation, the formation of collusive arrangements between firms, and the facilitation of ESG practices. This research has been published in top academic journals such as Journal of Financial Economics, Review of Financial Studies, Journal of Accounting Research, Management Science, RAND Journal of Economics Journal of International Economics, and Journal of Financial Intermediation. His work on international antitrust laws and M&A transactions was awarded Jerry S. Cohen Award for Antitrust Scholarship for the best antitrust work in 2019 while his work on corporate taxes and innovation was awarded Vladas Jurgutis prize in 2022 for the best economics research article written by a Lithuanian researcher over the past five years.
Professor Žaldokas’s research has contributed to the policy evaluation and has been recognized by the practitioners. Professor Žaldokas has presented his research work in the conferences organized by the Securities Exchange Commission (SEC), Federal Trade Commission (FTC), and the Brookings Institution, and it has been summarized in the policy brief by CATO Institute. His work has been recently covered by the international media such as Wall Street Journal and Bloomberg, and has been invited for the presentations for the global clients of UBS bank and the research team of Arrowstreet Capital, a Boston-based hedge fund. He also currently serves as the Board Member at the European Chamber of Commerce in Hong Kong, pro bono academic adviser at the Lithuanian Competition Council, and the Board Member at the Baltic Economic Association.
Registration
If you wish to attend this seminar, please register from the link below:
https://cvent.me/P9kW2G
※人数に限りがあるので、お早目にお申込み下さい。
The number of registrations will be limited on a first-come, first-served basis.
CFA Society Japan
[email protected]