NFLX

Netflix, Inc.

Fundamental data last updated:August 7, 2026

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company profile

SECTOR

Communication Services

industry

Entertainment

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Netflix, Inc. serves as a worldwide entertainment provider. Its comprehensive library features television series, motion pictures, documentaries, and mobile games, spanning numerous genres and languages. Members can effortlessly stream this content through a variety of internet-connected devices, including smart TVs, digital media players, cable boxes, and mobile phones. Furthermore, the company continues to offer a DVD-by-mail subscription service to its customers in the United States. With roughly 222 million paying subscribers distributed across 190 countries, Netflix was founded in 1997 and is headquartered in Los Gatos, California.

 


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VALUATION

P/E

24.00

Market Cap ($M USD)

$320.11B

Forward P/E

12.23

PEG

0.13

PRICE TO SALES

6.83

PRICE TO BOOK

10.31

EV / EBITDA

9.54

5-Year Average P/E

Free Cash Flow Yield

3.72%

DCF Value

$123.95

Graham Number

$22.92

Price to FCF

26.91

EV to FCF

27.34

Earnings Yield

4.17%

FCF Yield

3.72%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.17

Next Year EPS Growth Estimate

$6.22

Next Year Revenue Growth Estimate

$73.88B

Return on Equity (ROE)

49.24%

FREE CASH FLOW

Operating Margin

29.72%

Debt-to-Equity

0.54

Piotroski F-Score

8

Altman Z-Score

9.30

Return on Invested Capital (ROIC)

28.51%

Current Ratio

1.41

Quick Ratio

1.41

Net Debt to EBITDA

0.15

Interest Coverage

16.31

Gross Profit margin

49.03%

FCF PER SHARE

$2.82

REVENUE PER SHARE

$11.10

Analyze NFLX on TradingView

Gainseekers Quantitative Analysis

Summary

Netflix’s valuation paints a compelling picture of potential mispricing. With a DCF value significantly above recent pricing, the market appears to undervalue its future cash flows. The Forward P/E of 11.48 suggests growth at a reasonable price, while an Altman Z-score of 9.11 indicates robust financial health. The Earnings Yield of 4.44% further supports a narrative of solid profitability. Overall, Netflix seems to be a safe bet with growth potential, yet the market hasn’t fully recognized this.

AI Exposure / Tech Reliance

Operating in the Entertainment industry, Netflix is well-positioned to leverage AI and modern tech shifts. Its vast data on viewer preferences can be harnessed to enhance content recommendations and improve user engagement. This adaptability ensures Netflix remains at the forefront of tech-driven entertainment.

The Bull Case

For the discerning GARP investor, Netflix offers a tantalizing proposition. A stellar ROIC of 28.51% highlights its efficient capital use, while a Piotroski F-Score of 8 underscores strong financial health. The company's operating margin of 29.72% and a solid FCF yield indicate robust pricing power and cash generation. These metrics collectively tell a story of a company that knows how to turn revenue into profit effectively.

The Bear Case

Despite its strengths, Netflix's valuation multiples raise eyebrows. A Price/Book ratio of 9.69 and a Price/Sales of 6.41 suggest the stock is priced for perfection. The stock's proximity to its 52-week high, with a mere 0.76% distance, signals potential overextension. While its debt levels are manageable, these valuation concerns could deter cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$112.36

Institutional Ownership %

1-Year Beta

1.52

Insider Buying % (6 Mo)

Distance to 52-Week High

70.12%

Distance to 52-Week Low

6.79%

EARNINGS SURPRISE %

61.21%

50-DAY SMA

$83.77

200-DAY SMA

$95.88

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.