Netflix, Inc.

NasdaqGS:NFLX Stock Report

Market Cap: US$357.9b

Netflix Valuation

Is NFLX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NFLX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NFLX ($823.96) is trading above our estimate of fair value ($772.45)

Significantly Below Fair Value: NFLX is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NFLX?

Key metric: As NFLX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NFLX. This is calculated by dividing NFLX's market cap by their current earnings.
What is NFLX's PE Ratio?
PE Ratio45.3x
EarningsUS$7.78b
Market CapUS$357.89b

Price to Earnings Ratio vs Peers

How does NFLX's PE Ratio compare to its peers?

The above table shows the PE ratio for NFLX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average68x
DIS Walt Disney
41.9x18.1%US$197.6b
SPOT Spotify Technology
125.3x29.4%US$96.5b
WMG Warner Music Group
31.6x18.8%US$17.3b
FWON.K Formula One Group
73x20.0%US$20.8b
NFLX Netflix
45.3x15.9%US$357.9b

Price-To-Earnings vs Peers: NFLX is good value based on its Price-To-Earnings Ratio (45.3x) compared to the peer average (68x).

Price to Earnings Ratio vs Industry

How does NFLX's PE Ratio compare vs other companies in the US Entertainment Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IH iHuman
4.7xn/aUS$85.36m
RDBX Redbox Entertainment
1.2x-121.8%US$76.65m
GMM Global Mofy AI
0.5xn/aUS$9.30m
MSGM Motorsport Games
2.3xn/aUS$3.91m
NFLX 45.3xIndustry Avg. 21.4xNo. of Companies6PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NFLX is expensive based on its Price-To-Earnings Ratio (45.3x) compared to the US Entertainment industry average (21.4x).

Price to Earnings Ratio vs Fair Ratio

What is NFLX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NFLX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.3x
Fair PE Ratio32.4x

Price-To-Earnings vs Fair Ratio: NFLX is expensive based on its Price-To-Earnings Ratio (45.3x) compared to the estimated Fair Price-To-Earnings Ratio (32.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NFLX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$823.96
US$760.82
-7.7%
12.2%US$925.00US$550.00n/a41
Nov ’25US$756.10
US$760.82
+0.6%
12.2%US$925.00US$550.00n/a41
Oct ’25US$706.13
US$698.48
-1.1%
11.4%US$900.00US$500.00n/a41
Sep ’25US$701.35
US$694.24
-1.0%
11.5%US$900.00US$500.00n/a39
Aug ’25US$624.85
US$689.37
+10.3%
10.6%US$800.00US$500.00n/a39
Jul ’25US$673.61
US$649.98
-3.5%
11.5%US$800.00US$440.00n/a41
Jun ’25US$641.62
US$642.89
+0.2%
12.2%US$800.00US$440.00n/a42
May ’25US$551.71
US$640.74
+16.1%
12.2%US$800.00US$440.00n/a43
Apr ’25US$614.31
US$606.54
-1.3%
12.9%US$740.00US$425.00n/a41
Mar ’25US$619.34
US$580.55
-6.3%
12.7%US$740.00US$335.00n/a42
Feb ’25US$567.51
US$568.06
+0.1%
12.4%US$700.00US$335.00n/a42
Jan ’25US$486.88
US$471.43
-3.2%
12.4%US$600.00US$335.00n/a39
Dec ’24US$465.74
US$465.43
-0.07%
12.6%US$600.00US$335.00n/a39
Nov ’24US$420.19
US$458.59
+9.1%
12.9%US$600.00US$335.00US$756.1039
Oct ’24US$377.60
US$464.73
+23.1%
14.7%US$600.00US$325.00US$706.1337
Sep ’24US$439.88
US$458.37
+4.2%
15.3%US$600.00US$293.00US$701.3538
Aug ’24US$438.62
US$461.50
+5.2%
16.0%US$600.00US$293.00US$624.8536
Jul ’24US$440.49
US$400.32
-9.1%
18.3%US$535.00US$230.00US$673.6137
Jun ’24US$403.13
US$368.97
-8.5%
16.1%US$470.00US$215.00US$641.6236
May ’24US$324.12
US$362.35
+11.8%
15.6%US$440.00US$215.00US$551.7137
Apr ’24US$345.48
US$357.51
+3.5%
16.3%US$440.00US$215.00US$614.3137
Mar ’24US$313.48
US$357.11
+13.9%
16.4%US$440.00US$215.00US$619.3437
Feb ’24US$361.99
US$356.43
-1.5%
16.2%US$440.00US$215.00US$567.5137
Jan ’24US$294.88
US$303.25
+2.8%
17.9%US$405.00US$200.00US$486.8836
Dec ’23US$316.95
US$293.33
-7.5%
18.1%US$375.00US$162.00US$465.7436
Nov ’23US$286.75
US$286.58
-0.06%
19.3%US$375.00US$162.00US$420.1936

Analyst Forecast: Target price is lower than the current share price.

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