NFLX.O Relative Valuation
NFLX.O's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NFLX.O is overvalued; if below, it's undervalued.
Historical Valuation
Netflix Inc (NFLX.O) is now in the Fair zone, suggesting that its current forward PE ratio of 30.69 is considered Fairly compared with the five-year average of 36.21. The fair price of Netflix Inc (NFLX.O) is between 82.02 to 131.40 according to relative valuation methord.
Relative Value
Fair Zone
82.02-131.40
Current Price：94.47
Fair
30.69
PE
1Y
3Y
5Y
26.67
EV/EBITDA
Netflix Inc. (NFLX.O) has a current EV/EBITDA of 26.67. The 5-year average EV/EBITDA is 27.60. The thresholds are as follows: Strongly Undervalued below 13.60, Undervalued between 13.60 and 20.60, Fairly Valued between 34.59 and 20.60, Overvalued between 34.59 and 41.59, and Strongly Overvalued above 41.59. The current Forward EV/EBITDA of 26.67 falls within the Historic Trend Line -Fairly Valued range.
27.81
EV/EBIT
Netflix Inc. (NFLX.O) has a current EV/EBIT of 27.81. The 5-year average EV/EBIT is 29.94. The thresholds are as follows: Strongly Undervalued below 14.96, Undervalued between 14.96 and 22.45, Fairly Valued between 37.43 and 22.45, Overvalued between 37.43 and 44.92, and Strongly Overvalued above 44.92. The current Forward EV/EBIT of 27.81 falls within the Historic Trend Line -Fairly Valued range.
8.71
PS
Netflix Inc. (NFLX.O) has a current PS of 8.71. The 5-year average PS is 6.72. The thresholds are as follows: Strongly Undervalued below 2.04, Undervalued between 2.04 and 4.38, Fairly Valued between 9.07 and 4.38, Overvalued between 9.07 and 11.41, and Strongly Overvalued above 11.41. The current Forward PS of 8.71 falls within the Historic Trend Line -Fairly Valued range.
38.89
P/OCF
Netflix Inc. (NFLX.O) has a current P/OCF of 38.89. The 5-year average P/OCF is 118.44. The thresholds are as follows: Strongly Undervalued below -176.22, Undervalued between -176.22 and -28.89, Fairly Valued between 265.78 and -28.89, Overvalued between 265.78 and 413.11, and Strongly Overvalued above 413.11. The current Forward P/OCF of 38.89 falls within the Historic Trend Line -Fairly Valued range.
38.63
P/FCF
Netflix Inc. (NFLX.O) has a current P/FCF of 38.63. The 5-year average P/FCF is 202.75. The thresholds are as follows: Strongly Undervalued below -1820.68, Undervalued between -1820.68 and -808.97, Fairly Valued between 1214.46 and -808.97, Overvalued between 1214.46 and 2226.18, and Strongly Overvalued above 2226.18. The current Forward P/FCF of 38.63 falls within the Historic Trend Line -Fairly Valued range.
Netflix Inc (NFLX.O) has a current Price-to-Book (P/B) ratio of 15.42. Compared to its 3-year average P/B ratio of 13.19 , the current P/B ratio is approximately 16.91% higher. Relative to its 5-year average P/B ratio of 13.11, the current P/B ratio is about 17.61% higher. Netflix Inc (NFLX.O) has a Forward Free Cash Flow (FCF) yield of approximately 2.08%. Compared to its 3-year average FCF yield of 2.08%, the current FCF yield is approximately 0.02% lower. Relative to its 5-year average FCF yield of 1.40% , the current FCF yield is about 48.65% lower.
15.42
P/B
Median3y
13.19
Median5y
13.11
2.08
FCF Yield
Median3y
2.08
Median5y
1.40
Competitors Valuation Multiple
The average P/S ratio for NFLX.O's competitors is 21.23, providing a benchmark for relative valuation. Netflix Inc Corp (NFLX.O) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NFLX.O increased by 5.99% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 9.82B to 11.51B.
The secondary factor is the P/E Change, contributed -3.15%to the performance.
Overall, the performance of NFLX.O in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Netflix Inc (NFLX.O) currently overvalued or undervalued?
Netflix Inc (NFLX.O) is now in the Fair zone, suggesting that its current forward PE ratio of 30.69 is considered Fairly compared with the five-year average of 36.21. The fair price of Netflix Inc (NFLX.O) is between 82.02 to 131.40 according to relative valuation methord.
What is Netflix Inc (NFLX.O) fair value?
NFLX.O's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Netflix Inc (NFLX.O) is between 82.02 to 131.40 according to relative valuation methord.
How does NFLX.O's valuation metrics compare to the industry average?
The average P/S ratio for NFLX.O's competitors is 21.23, providing a benchmark for relative valuation. Netflix Inc Corp (NFLX.O) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
What is the current P/B ratio for Netflix Inc (NFLX.O) as of Dec 29 2025?
As of Dec 29 2025, Netflix Inc (NFLX.O) has a P/B ratio of 15.42. This indicates that the market values NFLX.O at 15.42 times its book value.
What is the current FCF Yield for Netflix Inc (NFLX.O) as of Dec 29 2025?
As of Dec 29 2025, Netflix Inc (NFLX.O) has a FCF Yield of 2.08%. This means that for every dollar of Netflix Inc’s market capitalization, the company generates 2.08 cents in free cash flow.
What is the current Forward P/E ratio for Netflix Inc (NFLX.O) as of Dec 29 2025?
As of Dec 29 2025, Netflix Inc (NFLX.O) has a Forward P/E ratio of 30.69. This means the market is willing to pay $30.69 for every dollar of Netflix Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Netflix Inc (NFLX.O) as of Dec 29 2025?
As of Dec 29 2025, Netflix Inc (NFLX.O) has a Forward P/S ratio of 8.71. This means the market is valuing NFLX.O at $8.71 for every dollar of expected revenue over the next 12 months.