# Netflix Inc. (NFLX) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Entertainment. Price $78.25, market value $325.8 billion.

## Valuation
- **P/E (trailing): 24.6×** (5-yr avg 41.2×, 3-yr avg 40.9×). Netflix Inc. trades at 24.6× trailing earnings, well below its own five-year average of 41.2×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 20.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.74**. A PEG of 0.74 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 6.7×**. Each dollar of revenue is priced at 6.7×.
- **Price / book: 10.8×**. The shares trade at 10.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 22.5×**. Enterprise value is 22.5× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.4%** (5-yr avg 1.7%). Free cash flow equals 3.4% of the market value, above its five-year average of 1.7%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 4.1%**. The inverse of the P/E: 4.1% of the price is earned each year.

## Profitability
- **Operating margin: 29.7%**. 29.7% of revenue is left after running the business, an exceptional level.
- **Net margin: 24.3%**. 24.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 41.3%**. 41.3% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 35.4%**. Return on all capital, debt included, is 35.4%: comfortably above what that capital costs.
- **Return on assets: 24.6%**. Each dollar of assets produces 24.6% of profit.

## Growth
- **Revenue growth (1 yr): 15.9%** (3-yr 12.6%/yr, 5-yr 12.6%/yr). Revenue grew 15.9% over the last year, against 12.6% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 27.8%** (3-yr 36.5%/yr, 5-yr 33.0%/yr). Earnings per share rose 27.8%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 80.1%/yr**. Free cash flow has compounded at 80.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.54**. Debt is 0.54 times equity, moderate leverage.
- **Net debt / EBITDA: 0.4×**. It would take 0.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 9.02**. A Z-score of 9.02 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Netflix Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (45 analysts). 45 analysts cover Netflix Inc.; the consensus is buy, with an average price target of $93.66 (+20% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -37.8%** (YTD -16.5%, 3-mo -4.8%). The shares are down 37.8% over twelve months including dividends.
- **From 52-week high: -38.2%** (20.2% above the low). Trading 38% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.34** (volatility 36%). Beta of 0.34 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NFLX · Page: https://foliofundamentals.com/stocks/nflx

Not investment advice.