Netflix, Inc.(NFLX) - Stock detail

Netflix, Inc.

US
NFLX
Netflix, Inc.(Listing date: 05/23/2002)

Netflix, Inc. was incorporated in the State of Delaware on August 29, 1997. It is one of the world's leading entertainment service companies, offering a wide variety of TV series, films, and games across different genres and languages. Members can play, pause, and resume watching anytime, anywhere, and can change their plans at any time.

AI Value AnalystHold
Overall Rating5.7/10
Generated at:2026-03-04 16:37:09
Analysis based on 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Real-time and TTM metrics used for valuation analysis. Currency in USD. Data completeness: Comprehensive analysis using multiple quarterly reports.
Overview

Netflix demonstrates strong fundamentals with excellent profitability and consistent growth, but faces stretched valuation metrics that indicate overvaluation at current price levels. The company maintains robust financial health with high efficiency metrics and adequate liquidity.

Valuation
2/10
Profitability
8/10
Financial health
7/10
Operation Advice
  • Hold rating for existing investors; new buyers should wait for pullbacks to $85-$90 range for better risk-reward.
  • Consider accumulating on dips toward $85 support level.

Valuation

P/E TTM
37.00
P/E LYR
31.97
P/B MRQ
15.27
P/S TTM
--
AI Analysis
  • Netflix appears overvalued based on elevated PE, PB, and PS ratios relative to historical averages and industry peers. DCF and relative valuation suggest fair value range of $80-$95, while current price of $98.66 exceeds this range.
  • Dynamic PE of 31.97 and TTM PE of 37.00 are elevated compared to historical averages and industry peers
  • PB ratio of 15.27 is high, indicating premium valuation relative to book value
  • TTM PS ratio of 9.22 is above industry median, justified by superior margins but requiring sustained growth
  • PEG estimate of approximately 1.85 suggests overvaluation relative to growth
  • Base case DCF using 20% discount rate and 15% growth deceleration suggests fair value ~$85-$90
  • Relative valuation compared to peers indicates reasonable range of $80-$95
  • Current price of $98.66 is above fair value ranges, indicating overvaluation
Valuation trend

Profitability

ROE TTM
42.76%
Net margin
24.30%
Gross margin
48.49%
Total revenue
45.18B
AI Analysis
  • Netflix exhibits outstanding profitability with expanding margins, strong earnings growth, and consistent double-digit revenue and profit growth across recent quarters.
  • Gross margin improved to 48.49% in 2025 from 46.06% in 2024, driven by content monetization and scale efficiencies
  • Net margin increased to 24.30% in 2025 from 22.34% in 2024, indicating strong bottom-line performance
  • Diluted EPS grew 27.78% YoY to $2.53 in 2025, supported by subscriber growth and pricing power
  • Revenue growth of 15.85% YoY to $45.18B in 2025 annual, maintaining robust trajectory
  • Net income rose 26.05% YoY to $10.98B, reflecting efficient cost management
  • Consistent double-digit revenue and profit growth across recent quarters
  • 15.22% revenue growth in Q3 2025, though growth rates have moderated slightly from prior highs
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--11.85%24.21%33.78%42.76%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue39.00B10.54B21.62B33.13B45.18B

Financial health

Debt/Asset
52.13%
Current ratio
1.19
Quick ratio
--
Cash ratio
1.19
AI Analysis
  • Netflix demonstrates strong financial health with adequate liquidity, moderate leverage, and high efficiency metrics including exceptional ROE and ROA.
  • Current ratio of 1.19 indicates adequate short-term liquidity, though borderline optimal
  • Debt-to-equity ratio approximated at 52.13% is moderate but manageable given high profitability
  • High ROE of 42.76% signifies effective use of equity
  • High ROA of 20.11% indicates effective use of assets
  • Strong financial health with consistent revenue growth and profitability
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset53.86%53.87%53.01%52.75%52.13%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.221.201.341.331.19