Netflix, Inc.

DB:NFC Stock Report

Market Cap: €373.0b

Netflix Valuation

Is NFC 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 NFC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NFC (€864.7) is trading above our estimate of fair value (€808.98)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for NFC. This is calculated by dividing NFC's market cap by their current earnings.
What is NFC's PE Ratio?
PE Ratio49.5x
EarningsUS$7.78b
Market CapUS$387.94b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average56.4x
EVD CTS Eventim KGaA
31.1x13.9%€7.8b
DIS Walt Disney
40.4x19.6%US$202.0b
SPOT Spotify Technology
125.2x29.7%US$92.2b
UMG Universal Music Group
28.9x6.5%€44.7b
NFC Netflix
49.5x16.0%€387.9b

Price-To-Earnings vs Peers: NFC is good value based on its Price-To-Earnings Ratio (49.5x) compared to the peer average (56.4x).

Price to Earnings Ratio vs Industry

How does NFC's PE Ratio compare vs other companies in the European Entertainment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NFC 49.5xIndustry Avg. 13.4xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NFC is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the European Entertainment industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is NFC'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.

NFC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.5x
Fair PE Ratio31.3x

Price-To-Earnings vs Fair Ratio: NFC is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the estimated Fair Price-To-Earnings Ratio (31.3x).

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 NFC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€864.70
€809.21
-6.4%
17.6%€1,057.54€528.77n/a41
Dec ’25€837.50
€749.33
-10.5%
16.1%€1,039.50€519.75n/a41
Nov ’25€697.60
€703.60
+0.9%
12.2%€855.44€508.64n/a41
Oct ’25€634.50
€627.30
-1.1%
11.4%€808.29€449.05n/a41
Sep ’25€630.20
€628.15
-0.3%
11.5%€814.32€452.40n/a39
Aug ’25€577.00
€636.08
+10.2%
10.6%€738.16€461.35n/a39
Jul ’25€625.80
€605.33
-3.3%
11.5%€745.04€409.77n/a41
Jun ’25€583.30
€592.04
+1.5%
12.2%€736.72€405.20n/a42
May ’25€519.30
€600.25
+15.6%
12.2%€749.44€412.19n/a43
Apr ’25€561.40
€564.69
+0.6%
12.9%€688.94€395.68n/a41
Mar ’25€571.90
€535.74
-6.3%
12.7%€682.87€309.14n/a42
Feb ’25€521.90
€523.93
+0.4%
12.4%€645.61€308.97n/a42
Jan ’25€441.95
€425.94
-3.6%
12.4%€542.10€302.67n/a39
Dec ’24€427.80
€427.97
+0.04%
12.6%€551.70€308.03€837.5039
Nov ’24€396.45
€430.06
+8.5%
12.9%€562.68€314.16€697.6039
Oct ’24€355.90
€440.01
+23.6%
14.7%€568.08€307.71€634.5037
Sep ’24€407.60
€421.01
+3.3%
15.3%€551.10€269.12€630.2038
Aug ’24€399.85
€416.00
+4.0%
16.0%€540.84€264.11€577.0036
Jul ’24€403.95
€368.34
-8.8%
18.3%€492.25€211.62€625.8037
Jun ’24€374.10
€342.92
-8.3%
16.1%€436.82€199.82€583.3036
May ’24€297.35
€328.11
+10.3%
15.6%€398.42€194.68€519.3037
Apr ’24€317.30
€336.81
+6.1%
16.3%€414.52€202.55€561.4037
Mar ’24€294.00
€332.86
+13.2%
16.4%€410.12€200.40€571.9037
Feb ’24€330.75
€328.60
-0.7%
16.2%€405.64€198.21€521.9037
Jan ’24€268.30
€285.90
+6.6%
17.9%€381.83€188.56€441.9536
Dec ’23€301.05
€284.09
-5.6%
18.1%€363.19€156.90€427.8036

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 08:54
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Netflix, Inc. is covered by 100 analysts. 45 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew Charles BealeArete Research Services LLP
Hannah KleivenArete Research Services LLP
Joseph BonnerArgus Research Company