NFLX PE Ratio & Valuation,Is NFLX Overvalued

NFLX Relative Valuation

NFLX'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 is overvalued; if below, it's undervalued.

Historical Valuation

Netflix Inc (NFLX) is now in the Fair zone, suggesting that its current forward PE ratio of 29.59 is considered Fairly compared with the five-year average of 36.10. The fair price of Netflix Inc (NFLX) is between 89.47 to 138.25 according to relative valuation methord.

Relative Value

Fair Zone

89.47-138.25

Current Price：90.73

Fair

29.59

25.70

EV/EBITDA

Netflix Inc. (NFLX) has a current EV/EBITDA of 25.70. The 5-year average EV/EBITDA is 27.54. The thresholds are as follows: Strongly Undervalued below 13.60, Undervalued between 13.60 and 20.57, Fairly Valued between 34.51 and 20.57, Overvalued between 34.51 and 41.47, and Strongly Overvalued above 41.47. The current Forward EV/EBITDA of 25.70 falls within the Historic Trend Line -Fairly Valued range.

26.81

EV/EBIT

Netflix Inc. (NFLX) has a current EV/EBIT of 26.81. The 5-year average EV/EBIT is 29.87. The thresholds are as follows: Strongly Undervalued below 14.96, Undervalued between 14.96 and 22.42, Fairly Valued between 37.33 and 22.42, Overvalued between 37.33 and 44.78, and Strongly Overvalued above 44.78. The current Forward EV/EBIT of 26.81 falls within the Historic Trend Line -Fairly Valued range.

8.39

Netflix Inc. (NFLX) has a current PS of 8.39. The 5-year average PS is 6.72. The thresholds are as follows: Strongly Undervalued below 2.03, Undervalued between 2.03 and 4.38, Fairly Valued between 9.07 and 4.38, Overvalued between 9.07 and 11.42, and Strongly Overvalued above 11.42. The current Forward PS of 8.39 falls within the Historic Trend Line -Fairly Valued range.

37.46

P/OCF

Netflix Inc. (NFLX) has a current P/OCF of 37.46. The 5-year average P/OCF is 115.52. The thresholds are as follows: Strongly Undervalued below -169.62, Undervalued between -169.62 and -27.05, Fairly Valued between 258.09 and -27.05, Overvalued between 258.09 and 400.66, and Strongly Overvalued above 400.66. The current Forward P/OCF of 37.46 falls within the Historic Trend Line -Fairly Valued range.

37.20

P/FCF

Netflix Inc. (NFLX) has a current P/FCF of 37.20. The 5-year average P/FCF is 213.36. The thresholds are as follows: Strongly Undervalued below -1788.70, Undervalued between -1788.70 and -787.67, Fairly Valued between 1214.40 and -787.67, Overvalued between 1214.40 and 2215.43, and Strongly Overvalued above 2215.43. The current Forward P/FCF of 37.20 falls within the Historic Trend Line -Fairly Valued range.

Netflix Inc (NFLX) has a current Price-to-Book (P/B) ratio of 14.86. Compared to its 3-year average P/B ratio of 13.26 , the current P/B ratio is approximately 12.05% higher. Relative to its 5-year average P/B ratio of 13.07, the current P/B ratio is about 13.68% higher. Netflix Inc (NFLX) has a Forward Free Cash Flow (FCF) yield of approximately 2.16%. Compared to its 3-year average FCF yield of 2.09%, the current FCF yield is approximately 3.40% lower. Relative to its 5-year average FCF yield of 1.40% , the current FCF yield is about 53.55% lower.

14.86

P/B

Median3y

13.26

Median5y

13.07

2.16

FCF Yield

Median3y

2.09

Median5y

1.40

Competitors Valuation Multiple

The average P/S ratio for NFLX's competitors is 8.09, providing a benchmark for relative valuation. Netflix Inc Corp (NFLX) exhibits a P/S ratio of 8.39, which is 3.67% above the industry average. Given its robust revenue growth of 17.16%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NFLX decreased by 7.11% 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 Margin Expansion, contributed -8.02%to the performance.

Overall, the performance of NFLX in the past 1 year is driven by Revenue Growth. Which is more sustainable.

17.16%

9.82B → 11.51B

Revenue Growth

-8.02%

24.06 → 22.13

Margin Expansion

-16.25%

45.41 → 38.03

P/E Change

-7.11%

97.68 → 90.73

Mkt Cap Growth

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Frequently Asked Questions

Is Netflix Inc (NFLX) currently overvalued or undervalued?

What is Netflix Inc (NFLX) fair value?

NFLX'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) is between 89.47 to 138.25 according to relative valuation methord.

How does NFLX's valuation metrics compare to the industry average?

What is the current P/B ratio for Netflix Inc (NFLX) as of Jan 08 2026?

As of Jan 08 2026, Netflix Inc (NFLX) has a P/B ratio of 14.86. This indicates that the market values NFLX at 14.86 times its book value.

What is the current FCF Yield for Netflix Inc (NFLX) as of Jan 08 2026?

As of Jan 08 2026, Netflix Inc (NFLX) has a FCF Yield of 2.16%. This means that for every dollar of Netflix Inc’s market capitalization, the company generates 2.16 cents in free cash flow.

What is the current Forward P/E ratio for Netflix Inc (NFLX) as of Jan 08 2026?

As of Jan 08 2026, Netflix Inc (NFLX) has a Forward P/E ratio of 29.59. This means the market is willing to pay $29.59 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) as of Jan 08 2026?

As of Jan 08 2026, Netflix Inc (NFLX) has a Forward P/S ratio of 8.39. This means the market is valuing NFLX at $8.39 for every dollar of expected revenue over the next 12 months.

NFLX Valuation