NFLX

Netflix

Fundamental data last updated:March 30, 2026

company profile

SECTOR

Communication Services

industry

Entertainment

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/16/26

Business Summary

Netflix is an entertainment company that provides streaming content to consumers through its digital platform. The company distributes films, television series, and other entertainment content to subscribers globally.

VALUATION

P/E

36.9

Market Cap ($M USD)

$394,476

Forward P/E

24.3

PEG

0.5

PRICE TO SALES

9

PRICE TO BOOK

14.8

EV / EBITDA

13.2

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$2.58

Next Year EPS Growth Estimate

$3.84

Next Year Revenue Growth Estimate

11.60%

Return on Equity (ROE)

41.30%

Operating Margin

29.50%

Debt-to-Equity

0.5

Piotroski F-Score

7

Altman Z-Score

10.9

Return on Invested Capital (ROIC)

28.30%%

Current Ratio

1.2

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Netflix operates in the Communication Services sector within the Entertainment industry and trades on the Nasdaq with a market cap of $394,476 million. The company has a Price/Earnings ratio of 36.9 and a Forward P/E of 24.3, alongside a PEG Forward of 0.5, suggesting expectations for earnings growth. Profitability remains strong with a 41.30% operating margin and 11.60% return on equity, while Debt/Equity stands at 29.50%.

AI Exposure / Tech Reliance

Netflix’s platform-driven entertainment model relies heavily on advanced technology infrastructure and data systems to deliver content at scale. Its valuation multiples, including a Price/Sales ratio of 9 and Price/Book of 14.8, reflect significant dependence on digital distribution and streaming technology.

The Bull Case

The Forward P/E of 24.3 compared to a current P/E of 36.9 and a PEG Forward of 0.5 may indicate attractive growth-adjusted valuation. Strong operating margins of 41.30% combined with moderate leverage at 29.50% Debt/Equity support financial stability.

The Bear Case

The stock trades at elevated multiples, including a Price/Sales ratio of 9 and Price/Book of 14.8, which may limit upside if growth expectations are not met. EPS is 13.2 while EPS Next Year (Est.) is $2.58, creating potential concerns around earnings trajectory.

Market Sentiment & Smart Money

Short Interest %

1.90%

Analyst Consensus

1.58

Average Analyst Price Target

$114.63

Institutional Ownership %

83.80%

1-Year Beta

0.66

Insider Buying % (6 Mo)

0.60%%

Distance to 52-Week High

69.70%%

Distance to 52-Week Low

124.60%%