Netflix Inc
Exchange: NASDAQSector: Communication ServicesIndustry: Entertainment
Netflix is one of the world's leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. Important Information and Where to Find It In connection with the proposed transaction between Netflix and WBD, WBD filed a definitive proxy statement on Schedule 14A (the "Proxy Statement") with the U.S. Securities and Exchange Commission (the "SEC"). The Proxy Statement was first mailed to WBD stockholders on or around February 17, 2026. Each of Netflix and WBD may also file with or furnish to the SEC other relevant documents regarding the proposed transaction. This communication is not a substitute for the Proxy Statement or any other document that Netflix or WBD may file with the SEC or mail to WBD's stockholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF NETFLIX AND WBD ARE URGED TO READ THE PROXY STATEMENT, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING NETFLIX, WBD, THE PROPOSED TRANSACTION AND RELATED MATTERS.
Did you know?
NFLX's revenue grew at a 14.4% CAGR over the last 6 years.
Current Price
$98.66
+3.25%GoodMoat Value
$104.07
5.5% undervaluedProfile
Valuation (TTM)
Market Cap$418.05B
P/E38.07
EV$401.08B
P/B15.71
Shares Out4.24B
P/Sales9.25
Revenue$45.18B
EV/EBITDA14.00
Netflix Inc (NFLX) Stock Analysis
GoodMoat Analysis
Netflix possesses a strong competitive moat built on scale, content, and brand, but its current valuation appears full, offering a marginal margin of safety. The business is high-quality with robust profitability and growth, yet the price demands near-perfect execution. For a value investor, it is a company worth investigating further, but likely with caution.
Read full analysis
Netflix operates the world's leading subscription streaming service, leveraging its massive scale and proprietary content library to dominate the entertainment industry. Applying the GoodMoat framework, the company scores highly on Moat Identification, meeting several key criteria. It demonstrates significant Scale Privilege with its global subscriber base and content spend, strong Brand & Culture, and high Switching Costs through its personalized user interface and vast library. Proprietary data from viewing habits further strengthens its content creation and recommendation engine. This supports a durable competitive advantage.
Financially, Netflix exhibits high Quality Indicators, with a robust operating margin of 29.5%, an exceptional ROE of 41.3%, and strong revenue growth of 17.6% YoY. The balance sheet is manageable with a Debt/Equity ratio of 0.54. According to the Decision Framework, the business passes the Moat & Quality Gate. However, the Valuation Assessment presents a hurdle. With a P/E of 35.6 and a GoodMoat Target price of $104.07, the current price of $92.28 implies a margin of safety of only about 11%, which falls into the 'Marginal' band (10-20%). This suggests the stock is fairly valued to slightly undervalued, but does not offer a wide discount. The valuation is full relative to its growth, requiring sustained high performance. While the business is strong, the marginal safety suggests an investment case would require a high-conviction view on continued flawless execution and growth durability.
Analysis based on data as of 2024-07-21.
Market Cap$418.05B
Current Price$98.66
P/E Ratio38.07
Forward P/E—
PEG Ratio1.29
EPS$2.53
Book Value$6.28
P/B Ratio15.71
NFLX Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 5.4B
Revenue
20.2B
FY19
25.0B
FY20
29.7B
FY21
31.6B
FY22
33.7B
FY23
39.0B
FY24
45.2B
FY25
Net Income
1.9B
FY19
2.8B
FY20
5.1B
FY21
4.5B
FY22
5.4B
FY23
8.7B
FY24
11.0B
FY25
NFLX 52-Week Range
$75.86
$133.91
50-Day MA: $88.17200-Day MA: $107.13
Did you know?
NFLX's revenue grew at a 14.4% CAGR over the last 6 years.
Netflix Inc (NFLX) Financial Summary
Netflix Inc (NFLX) is a Communication Services company in the Entertainment industry, listed on NASDAQ. The stock currently trades at $98.66 with a market capitalization of $418.05B.
Key valuation metrics include a P/E ratio of 38.07, price-to-book ratio of 15.71, and EPS of $2.53. The company reports a profit margin of 24.3% and return on equity of 41.3%.
NFLX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $418.05B |
| P/E Ratio | 38.07 |
| EPS | $2.53 |
| P/B Ratio | 15.71 |
| P/S Ratio | 9.25 |
| EV/EBITDA | 14.00 |
| Profit Margin | 24.3% |
| Return on Equity | 41.3% |
| Debt/Equity | 0.54 |
NFLX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $20.16B | $1.87B |
| FY20 | $25.00B | $2.76B |
| FY21 | $29.70B | $5.12B |
| FY22 | $31.62B | $4.49B |
| FY23 | $33.72B | $5.41B |
| FY24 | $39.00B | $8.71B |
| FY25 | $45.18B | $10.98B |
Netflix Inc (NFLX) Valuation
Based on GoodMoat's DCF model, Netflix Inc has a fair value estimate of $104.07. At the current price of $98.66, the stock appears 5.2% undervalued relative to our intrinsic value estimate.
NFLX Quality Indicators
Netflix Inc maintains a profit margin of 24.3% and an operating margin of 29.5%. Return on equity stands at 41.3%. The current ratio is 1.19. Debt-to-equity ratio is 0.54.
About Netflix Inc
Netflix is one of the world's leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. Important Information and Where to Find It In connection with the proposed transaction between Netflix and WBD, WBD filed a definitive proxy statement on Schedule 14A (the "Proxy Statement") with the U.S. Securities and Exchange Commission (the "SEC"). The Proxy Statement was first mailed to WBD stockholders on or around February 17, 2026. Each of Netflix and WBD may also file with or furnish to the SEC other relevant documents regarding the proposed transaction. This communication is not a substitute for the Proxy Statement or any other document that Netflix or WBD may file with the SEC or mail to WBD's stockholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF NETFLIX AND WBD ARE URGED TO READ THE PROXY STATEMENT, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING NETFLIX, WBD, THE PROPOSED TRANSACTION AND RELATED MATTERS.
NFLX Free Cash Flow
Netflix Inc generated $9.46B in trailing twelve-month free cash flow, representing an FCF yield of 2.26%. This moderate FCF yield indicates reasonable cash generation.
NFLX Shares Outstanding
Netflix Inc has 4.24 billion shares outstanding at a share price of $98.66, giving it a market capitalization of $418.05B.
NFLX Recent Insider Trades
Recent insider transactions at Netflix Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Neumann Spencer Adam (Chief Financial Officer) | SELL | 28,630 | $2.81M |
| HASTINGS REED | SELL | 152,047 | $14.45M |
| Neumann Spencer Adam (Chief Financial Officer) | SELL | 28,630 | $2.78M |