I'm trying to calculate the real value of a business and, as an example, I picked Netflix.
From their latest financial statements I can see that:
- Assets value is: $3,065,709,000
- Liabilities value is: $2,417,386,000
So, their book value is $648,323,000 (correct?).
Now, according to MSN, there are 55.36 million shares available.
So, if Netflix would have the above mentioned book value (is this the correct term?) and the above mentioned number of shares, then the real value of their shares is actually $11.711/share.
If Netflix were to (hypothetically) go bankrupt immediately (considering that the numbers would be up to date and not from Dec. 31) and their assets sold & any liabilities paid, the shareholders would get only $11.711/share back.
Are the above calculations and conclusions correct?