The recent downgrade of Netflix, the best performer in the S&P through 2013, was "premature" at best and the company could be worth billions more than its current valuation, CNBC's Jim Cramer said Tuesday.
"I've been saying ... they can raise the price and no one could know the difference," Cramer said on "Squawk on the Street." "I really believe that. This is a really powerful story by a really excellent CEO."
Cramer said Netflix could be worth $30 billion compared to its current valuation of $21.3 billion, but the company would need to triple its international subscriber base. Cramer said that goal doesn't seem outlandish because of Netflix's low price points and sound business model.
(Read more: Cramer: Don't worry, be happy, buy this stock?)