Netflix Inc (NFLX)
Communication Services · Movies & Entertainment · US stock · S&P 500 component
$65.85
▼ -1.20 (1.79%)
Fair valueFair
$76 +15.8% to fair value
$38fair band $65–$92$114
Day's range
$65.78 – $67.82
52-week range
$64.10 – $116.73
About Netflix Inc
Netflix is a streaming entertainment service that offers films, series, documentaries and games to members around the world. It produces original content and licenses titles from other studios. The company earns money mainly from monthly subscription fees, and it has added lower priced plans that include advertising. Spending on content is a major cost, and growth in members and pricing are key drivers.
Revenue for the last twelve months was $48.4 billion, and it grew by 12.6% a year over three years. The operating margin is 29.7%, and return on invested capital reached 32%. Net debt to EBITDA is 0.5 times. It does not pay a dividend. Its X-Ray Score is 57 out of 100.
NFLX news
All NFLX news →Price chart
52-wk range $64.10 – $116.73Volume 35,672,753Daily, split-adjusted
Vitals
Market cap$280.6B
52-week range$64.10 – $116.73
Volume (last day)35,672,753
P/E (TTM)16.1
EBIT / EV yield5.0%
Free-cash-flow yield4.0%
Dividend yieldNo dividend
Revenue (TTM)$48.4B
Net income (TTM)$13.6B
Operating margin29.7%
Return on capital31.5%
Debt incl. leases$16.6B
Cash & securities$9.1B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$76middle half of models $68 – $87
Fair
+15.8% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Low, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $66
Undervalued < $65Fair $65 – $92Overvalued > $92
P/E multiple
$76
P/B multiple
$80
P/S multiple
$68
EV/EBITDA multiple
$69
EV/EBIT multiple
$86
EV/revenue multiple
$68
10-year DCF, EBITDA exit
$91
5-year DCF, EBITDA exit
$90
10-year DCF, revenue exit
$90
5-year DCF, revenue exit
$87
10-year DCF, growth exit
$67
5-year DCF, growth exit
$62
Earnings power value
$57
Growth the price implies
9.5%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 4.96%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Communication Services peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
44/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield5.0%
Free-cash-flow yield4.0%
Fair value vs price1.2×
Growth
Fair
64/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)12.6%
EPS growth (3y)-36.6%
Growth consistency100%
Profitability
Fair
57/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital31.5%
Operating margin29.7%
Gross profitability40.6%
Financial health
Fair
68/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA0.5×
Interest cover16.9×
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+12.5%
Mar '25
+15.9%
Jun '25
+17.2%
Sep '25
+17.6%
Dec '25
+16.2%
Mar '26
+13.4%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $12.6B, diluted EPS $0.80.
Compare with peers
DIS Walt Disney Co56 TKO TKO Group Holdings, In...52 LYV Live Nation Entertainm...41Other Movies & Entertainment companies by X-Ray Score.
SWOT analysis: Netflix Inc
Strengthsinside the company
- Return on invested capital is 31.5%, against a median of 11.8% for industry peers.
- Operating margin of 29.7% is well above the 18.4% median of industry peers, a sign of pricing power or lower costs.
- Revenue has grown 12.6% a year over three years (median 14.7% for industry peers).
- Operating profit covers interest 17x, so debt costs are a small drag.
Weaknessesinside the company
- Earnings per share have declined 36.6% a year over three years.
Opportunitiesvaluation and setting
- Trades at 20.6x earnings, 64% below the 57.2x median of industry peers.
- Our Market Compass rates the backdrop for Communication Services as favourable.
Threatsvaluation and setting
- The price trend is down on the daily and weekly signals.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare NFLX with peers and sector
Medians of 3 Movies & Entertainment peers and of 17 Communication Services stocks in our universe.
Largest peers (X-Ray Score): DIS 56, LYV 41, TKO 52.
| Metric | NFLX | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 57 | 52 | 51 |
| Valuation | 44 | 65 | 60 |
| Growth | 64 | 46 | 48 |
| Profitability | 57 | 54 | 52 |
| Financial health | 68 | 38 | 51 |
| Dividends | – | – | 47 |
Sector leaders: highest X-Ray Score in Communication Services
NFLX ranks #5 of 18 in Communication Services and #1 of 4 in Movies & Entertainment by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for NFLX
Each factor is rated by where NFLX stands among the 18 Communication Services stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 9 Good · 6 Average · 6 Bad of 21
Growth: 2 · 0 · 1
Profitability: 4 · 1 · 0
Financial strength: 1 · 3 · 0
Valuation: 0 · 2 · 3
Cash flow: 2 · 0 · 2
| Factor | NFLX | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +12.6% | Good beats 69% | +5.6% | – | – |
| Revenue growth, last year | +15.9% | Good beats 75% | +7.7% | +15.6% | ≈ In line |
| EPS growth, 3 years a year | −36.6% | Bad beats 4% | +6.6% | – | – |
| Profitability | |||||
| Gross margin | 49.1% | Average beats 53% | 47.1% | 41.6% | ▲ Better |
| Operating margin | 29.7% | Good beats 81% | 19.3% | 20.9% | ▲ Better |
| Net margin | 28.2% | Good beats 69% | 10.6% | 17.2% | ▲ Better |
| Return on invested capital | 31.5% | Good beats 81% | 10.4% | – | – |
| Return on equity | 45.3% | Good beats 81% | 17.9% | 32.3% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 0.5x | Average beats 66% | 1.4x | 1.0x | ▲ Better |
| Interest cover | 16.9x | Average beats 53% | 11.8x | 9.9x | ▲ Better |
| Current ratio | 1.14 | Average beats 53% | 1.10 | 1.17 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 75% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 20.6x | Average beats 44% | 19.9x | 40.5x | ▲ Better |
| Price / book | 9.3x | Bad beats 19% | 2.7x | 15.3x | ▲ Better |
| Price / sales | 5.8x | Bad beats 25% | 2.0x | 9.0x | ▲ Better |
| EV / EBITDA | 19.6x | Bad beats 32% | 13.3x | 30.9x | ▲ Better |
| Free cash flow yield | 4.0% | Average beats 50% | 4.0% | 2.3% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 23.1% | Good beats 72% | 15.7% | 17.7% | ▲ Better |
| Cash from operations / net income | 0.88 | Bad beats 17% | 1.98 | 0.84 | ≈ In line |
| Free cash flow growth, 3 years a year | +80.1% | Good beats 95% | +11.7% | – | – |
| Accruals (lower is better) | +2.9% | Bad beats 16% | −5.8% | – | – |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 7 Good · ● 7 Average · ● 2 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldAverage
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
EPS growth (3y)Bad
Free-cash-flow growth (3y)Good
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioAverage
Net debt / EBITDAAverage
Interest coverAverage
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 54/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $29.7B | $31.6B | $33.7B | $39.0B | $45.2B |
| Operating income | $6.2B | $5.6B | $7.0B | $10.4B | $13.3B |
| Net income | $5.1B | $4.5B | $5.4B | $8.7B | $11.0B |
| Operating cash flow | $393M | $2.0B | $7.3B | $7.4B | $10.1B |
| Operating margin | 20.9% | 17.8% | 20.6% | 26.7% | 29.5% |
| Free cash flow | −$132M | $1.6B | $6.9B | $6.9B | $9.5B |
| Diluted EPS | $11.24 | $9.95 | $1.20 | $1.98 | $2.53 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bearish
3 bullish · 1 neutral · 12 bearish
Weekly
Strongly bearish
0 bullish · 1 neutral · 11 bearish
Monthly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Moving averages (daily)
| SMA 10 | 69.13 | Bearish |
| EMA 10 | 68.30 | Bearish |
| SMA 20 | 69.15 | Bearish |
| EMA 20 | 69.65 | Bearish |
| SMA 50 | 74.27 | Bearish |
| EMA 50 | 72.42 | Bearish |
| SMA 100 | 74.59 | Bearish |
| EMA 100 | 75.99 | Bearish |
| SMA 200 | 82.27 | Bearish |
| EMA 200 | 82.29 | Bearish |
Oscillators (daily)
| RSI (14) | 37.12 | Neutral |
| MACD (12, 26) | -1.74 | Bearish |
| Momentum (12) | -5.52 | Bearish |
| Stochastic %K (14) | 19.51 | Bullish |
| Williams %R (14) | -80.49 | Bullish |
| CCI (20) | -120.6 | Bullish |
Pivot points (classic, last session)
S3 63.11 | S2 64.44 | S1 65.15 | Pivot 66.48 | R1 67.19 | R2 68.52 | R3 69.23 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold NFLX
| ETF | Share of the fund |
|---|---|
| NFXL Direxion Daily NFLX Bull 2X | 15.11% |
| GXPC Global X Purecap MSCI Communication Se... | 5.27% |
| XLC Communication Services Select Sector S... | 4.84% |
| VOX Vanguard Communication Services | 4.75% |
| FCOM Fidelity MSCI Communication Services I... | 4.32% |
| FEPI REX FANG & Innovation Equity Premium I... | 4.21% |
| FDN First Trust Dow Jones Internet Index | 3.90% |
| SPHQ Invesco S&P 500 Quality | 3.71% |
The eight funds with the largest weight in NFLX among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
NFLX stock splits
NFLX has split its stock 3 times since 2004. The latest was a 10-for-1 split on 17 Nov 2025.
Full NFLX stock split history →NFLX SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Other events
424B5SEC EDGAR
424B5
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results; Other events
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.