NETFLIX INC
$62.15
−0.54 (−0.86%) · delayed · Nov 13, 2026
Five-year price
52w $61.39 to $115.25
- Market cap
- $255.2B
- Enterprise value
- $260.6B
- P/E
- 24.6×
- 32.7× on 3y avg EPS
- EV / EBIT
- 19.6×
- FCF yield
- 3.7%
- ROIC
- 35.9%
- Debt / equity
- 0.54
- Piotroski F
- 6/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
67
- ●ROIC > 12% (5y avg)5y avg ROIC 24.6%
- ●ROE > 15% (5y avg)5y avg ROE 31.3%
- ●Stable operating marginsMargin volatility 4.3% (σ, 5y)
- ○Earnings convert to cashFCF / net income 65% (5y avg)
- ●Growing revenueRevenue CAGR 5y 12.6%
- ○Shrinking share countDiluted shares 856.4% over 5y
Value
0
- ○P/E below 15P/E 24.6
- ○EV/EBIT below 12EV/EBIT 19.6
- ○FCF yield above 6%FCF yield 3.7%
- ○Price below Graham NumberGraham Number $19.21
- ○P/B below 3P/B 9.6
Safety
60
- ○Debt / equity below 0.5D/E 0.54
- ●Debt payable in < 4 yrs of earningsNet debt $5.4B
- ●Interest coverage > 8xCoverage 17.2x
- ○Current ratio > 1.5Current ratio 1.19
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
29
- ●Adequate size (revenue > $2B)Revenue $45.2B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.19
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ○Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 31%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 32.7
- ○P/E × P/B ≤ 22.5Product 313.1
Valuation lab
What do you have to believe?
At $62.15, the market is pricing in about 9.9% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $5.4B · 4106M shares · 5y revenue CAGR 12.6%
Intrinsic value
$79.02
Price
$62.15
Margin of safety
21%
What the price implies
The market is paying for 9.9% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
65% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 8,831 | 11,693 | 15,794 | 20,156 | 24,996 | 29,698 | 31,616 | 33,723 | 39,001 | 45,183 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 380 | 839 | 1,605 | 2,604 | 4,585 | 6,195 | 5,633 | 6,954 | 10,418 | 13,327 |
| Operating margin | 4.3% | 7.2% | 10.2% | 12.9% | 18.3% | 20.9% | 17.8% | 20.6% | 26.7% | 29.5% |
| Pre-tax income | 261 | 485 | 1,226 | 2,062 | 3,199 | 5,840 | 5,264 | 6,205 | 9,966 | 12,723 |
| Income tax | 74 | (74) | 15 | 195 | 438 | 724 | 772 | 797 | 1,254 | 1,741 |
| Net income | 187 | 559 | 1,211 | 1,867 | 2,761 | 5,116 | 4,492 | 5,408 | 8,712 | 10,981 |
| EPS (diluted) | 0.43 | 1.25 | 2.68 | 4.13 | 6.08 | 11.24 | 9.95 | 1.20 | 1.98 | 2.53 |
| Diluted shares | 439 | 447 | 451 | 452 | 454 | 455 | 451 | 4,495 | 4,393 | 4,344 |
Who owns it