# Netflix Inc. (NFLX) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Communication Services / Entertainment. Price $63.42, market value $264.1 billion.

## Valuation
- **P/E (trailing): 18.3×** (5-yr avg 41.2×, 3-yr avg 40.9×). Netflix Inc. trades at 18.3× 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 16.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.61**. A PEG of 0.61 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 5.3×**. Each dollar of revenue is priced at 5.3×.
- **Price / book: 8.9×**. The shares trade at 8.9× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 16.9×**. Enterprise value is 16.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.3%** (5-yr avg 1.7%). Free cash flow equals 4.3% 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: 5.5%**. The inverse of the P/E: 5.5% of the price is earned each year.

## Profitability
- **Operating margin: 31.3%**. 31.3% 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: 38.4%**. Return on all capital, debt included, is 38.4%: comfortably above what that capital costs.
- **Return on assets: 26.6%**. Each dollar of assets produces 26.6% 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: 0.3×**. It would take 0.3 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 1.19** (quick 1.19). Current assets cover the next year's liabilities 1.19 times.
- **Altman Z-score: 7.79**. A Z-score of 7.79 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** (43 analysts). 43 analysts cover Netflix Inc.; the consensus is buy, with an average price target of $84.76 (+34% 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): -44.3%** (YTD -33.5%, 3-mo -15.0%). The shares are down 44.3% over twelve months including dividends.
- **From 52-week high: -45.7%** (3.3% above the low). Trading 46% 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): 32**. An RSI of 32 is neutral.
- **Beta (1 yr): 0.27** (volatility 36%). Beta of 0.27 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.