Stocks · Media

Netflix, Inc. (NFLX)

$62.88

−1.60% last session

Market value

$262.4bn

P/E ratio

17.8

Dividend yield

–

52-week range

$64–$117

What Netflix, Inc. does

Its comprehensive library features television series, motion pictures, documentaries, and mobile games, spanning numerous genres and languages. Members can effortlessly stream this content through a variety of internet-connected devices, including smart TVs, digital media players, cable boxes, and mobile phones. Furthermore, the company continues to offer a DVD-by-mail subscription service to its customers in the United States.

Media · based in the US · listed since 2002Company website ↗

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tap a grade for the details

AGrowthGrowing fast

Sales growth, last 12 months14.7% · 82/100

Sales growth a year, 5 years12.6% · 76/100

Earnings per share growth a year, 5 years33.0% · 100/100

AProfitabilityHighly profitable

Net profit margin29.7% · 100/100

Return on equity50% · 100/100

Return on capital, 10-year average18.0% · 82/100

AFinancial strengthRock solid

Net debt ÷ operating profit0.4× · 89/100

Interest cover17× · 96/100

Current ratio (short-term assets ÷ debts)1.07 · 64/100

CValuationFairly priced

P/E against its own 10-year history55th percentile · 45/100

Free cash flow yield4.3% · 68/100

PEG (P/E ÷ growth)0.5 · 99/100

Our base-case value vs price−38% · 15/100

FMomentumStrong downtrend

Share price, last 12 months−40.9% · 0/100

Share price, last 3 months−6.0% · 31/100

Price

−42.6% over 1Y

27 Oct 2026$62.82

Daily closing prices. Source: Twelve Data.

Bull vs bear

The numbers lean bullish (11 vs 7)

The bull case

A proven grower●●●

Revenue up 20.9% a year for 10 years.

Profit per share compounding●●○

Earnings per share up 24.6% a year.

Very high returns on capital●●○

Averages 18% after tax, a sign of a durable advantage (a 'moat').

Margins widening●●○

Operating margin up from 17.8% to 29.5% in three years.

Cash machine●○○

Turns 21% of revenue into free cash flow.

Analysts see upside●○○

Average target 37% above the price.

The bear case

Questionable capital allocation●●○

Passes only 3 of 7 capital-allocation checks.

Our cash-flow model says it's pricey●●○

Base case 38% below today's price.

Buybacks don't shrink the share count●○○

Spent $22.0bn, yet the share count rose 895.3%: buybacks mostly offset shares handed to staff

Recoveries can take years●○○

Took 53 months to recover after the 2004 fall.

A bumpy ride●○○

Beta 1.6: typically moves 1.6× as much as the market.

Can you answer every bear point? Put your answers in your thesis under risks.

See the full picture on Netflix, Inc.

Ten years of results, revenue by product and region, a management scorecard, bear/base/bull valuations, analyst targets, every SEC filing explained, and a thesis that checks itself after each report. Free.

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Netflix, Inc. (NFLX)

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Bull vs bear

Bull vs bear

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