Netflix, Inc.

SNSE:NFLX Stock Report

Market Cap: US$299.2b

Netflix Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($623.4) is trading below our estimate of fair value ($631.16)

Significantly Below Fair Value: NFLX is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NFLX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.5x
Enterprise Value/EBITDA34.4x
PEG Ratio2.6x

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 Average74.3x
DIS Walt Disney
34.5x21.6%US$163.0b
SPOT Spotify Technology
132.8x29.5%US$69.5b
UMG Universal Music Group
26.9x6.6%€41.6b
BOL Bolloré
103.2x32.8%€15.9b
NFLX Netflix
42.2x16.0%US$299.2b

Price-To-Earnings vs Peers: NFLX is good value based on its Price-To-Earnings Ratio (42.2x) compared to the peer average (74.3x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.5%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.5%
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No more companies

Price-To-Earnings vs Industry: NFLX is expensive based on its Price-To-Earnings Ratio (42.2x) compared to the Global Entertainment industry average (22.2x).

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 Ratio42.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NFLX's Price-To-Earnings Fair Ratio for valuation analysis.

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$623.40
US$690.66
+10.8%
10.7%US$800.00US$500.00n/a39
Aug ’25n/a
US$689.37
0%
10.6%US$800.00US$500.00n/a39
Jul ’25n/a
US$649.98
0%
11.5%US$800.00US$440.00n/a41
Jun ’25n/a
US$642.89
0%
12.2%US$800.00US$440.00n/a42
May ’25n/a
US$640.74
0%
12.2%US$800.00US$440.00n/a43
Apr ’25n/a
US$606.54
0%
12.9%US$740.00US$425.00n/a41
Mar ’25n/a
US$580.55
0%
12.7%US$740.00US$335.00n/a42
Feb ’25n/a
US$568.06
0%
12.4%US$700.00US$335.00n/a42
Jan ’25n/a
US$471.43
0%
12.4%US$600.00US$335.00n/a39
Dec ’24n/a
US$465.43
0%
12.6%US$600.00US$335.00n/a39
Nov ’24n/a
US$458.59
0%
12.9%US$600.00US$335.00n/a39
Oct ’24n/a
US$464.73
0%
14.7%US$600.00US$325.00n/a37
Sep ’24n/a
US$458.37
0%
15.3%US$600.00US$293.00n/a38
Aug ’24n/a
US$461.50
0%
16.0%US$600.00US$293.00n/a36
Jul ’24n/a
US$400.32
0%
18.3%US$535.00US$230.00n/a37
Jun ’24n/a
US$368.97
0%
16.1%US$470.00US$215.00n/a36
May ’24n/a
US$362.35
0%
15.6%US$440.00US$215.00n/a37
Apr ’24n/a
US$357.51
0%
16.3%US$440.00US$215.00n/a37
Mar ’24n/a
US$357.11
0%
16.4%US$440.00US$215.00n/a37
Feb ’24n/a
US$356.43
0%
16.2%US$440.00US$215.00n/a37
Jan ’24n/a
US$303.25
0%
17.9%US$405.00US$200.00n/a36
Dec ’23n/a
US$293.33
0%
18.1%US$375.00US$162.00n/a36
Nov ’23n/a
US$286.58
0%
19.3%US$375.00US$162.00n/a36
Oct ’23n/a
US$249.75
0%
22.3%US$399.00US$157.00n/a36
Sep ’23n/a
US$242.00
0%
22.3%US$399.00US$157.00n/a36
Aug ’23n/a
US$241.44
0%
22.4%US$399.00US$157.00n/a36

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

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