Yahoo had revenue right at $5billion last year which is very close to what netflix will do in 2013. Yahoo's market cap is 24.7billion or 4.86 times sales. If Netflix were trading at 4.86 times sales the share price would be $313.85.
It's not easy to value Neflix that's why it is such a volatile stock. I like to use DirectTV which is a pure play on pay TV and has a market cap of $30 billion. I believe internet TV is revolutionary and will replace cable TV. Internet TV is less labor intensive and the internet makes expansion into international markets much easier. If Netflix can remain the leader it could easily become twice the size of DirectTV or $60 billion MC. So how far along and what are it's chances of getting there determines the value of Netflix and right now the market is telling us it's worth $10.3 billion. As Netflix makes further progress it gets closer to the $60 billion MC.
Netflix is a growth company/stock and will be traded like one. Yahoo is either on the apex or downside trajectory re growth. Much more like the 'story stock' pharmaceuticals, many that have not only no earnings but no revenue and trade on the story. Just pretend Netflix has a drug in the pipeline that will cure Comcasthate.
Not to mention the fact that Yahoo owns a stake in Alibaba. They also have insane amounts of trademarks, intellectual property, and real assets. Netflix on the other hand has content they lease, and putrid balance sheet.
How on Earth do you think that they will earn $5 billion next year? Are content costs coming down? Are they going to go from $9 million allegedly last quarter to $5 billion next year? If that is true than I will say that First Solar will make $20 billion next year despite losing money and having a horrible earnings report. Nice how making up arbitrary numbers works, right?