Coinstar, Inc. (CSTR), Netflix, Inc. (NFLX): A True Value Story of a DVD Rental Business

Page 2 of 2

Coinstar, Inc. (NASDAQ:CSTR) is really a value story. In 2012, the company generated as much as $256 million in free cash flow. Thus the P/FCF is only 6. B. Riley has placed a target price of $80 per share on Coinstar. At $80 per share, Coinstar would be valued at around 5.4 times EV/EBITDA and only 8.7 times P/FCF. Personally, I think Coinstar could be worth even higher, based on its historical ability to generate consistent cash flow.

The article A True Value Story of a DVD Rental Business originally appeared on Fool.com and is written by Anh HOANG.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2