Entertainment · NASDAQ
Current Price
$92.12
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Netflix, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services in the United States. The company has approximately 222 million paid members in 190 countries. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.
Earnings Yield
3.44%
ROE (TTM)
49.2%
Based on trailing twelve-month data, NFLX has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of NFLX reflects how much investors pay per dollar of Netflix, Inc.'s earnings. This metric is most useful when compared to Entertainment peers and the company's own historical range.
Whether NFLX is overvalued depends on comparing its PE ratio to Entertainment peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Netflix, Inc. using PE: (1) Compare the current PE against the Entertainment median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how NFLX is priced versus Entertainment peers. DCF provides an absolute value based on projected free cash flows. For NFLX, with a strong ROE of 49.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
