What Justifies A $700 Price Tag For Netflix?

Netflix's stock has witnessed a phenomenal run-up in the last few months and has risen more than 95% year to date. The stock is currently trading at around the $700 mark whereas our $549 price estimate for the company stands at a discount of about 20% to the market. This begs the question - what does the current market price represent in terms of Netflix's future growth? In this analysis, we try to answer this question by looking at certain fundamental business and valuation drivers that have hi...