Netflix, Inc. (NFLX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+76.0%

$110.16

vs $62.60 price

Levered DCF

$22.22

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

8.55

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	36.34×	43.91×	39.59×	29.2×	51.93×	85.83×	75.96×	96.29×
P/B	14.9×	15.47×	10.44×	6.31×	16.84×	21.55×	18.68×	22.25×
P/S	8.78×	9.82×	6.38×	4.15×	8.99×	9.54×	7.03×	7.38×
EV / EBITDA	13.29×	14.94×	10.45×	6.9×	14.65×	16.04×	12.74×	13.29×
Gross margin	48.5%	46.1%	41.5%	39.4%	41.6%	38.9%	38.3%	36.9%
Operating margin	29.5%	26.7%	20.6%	17.8%	20.9%	18.3%	12.9%	10.2%
Net margin	24.3%	22.3%	16.0%	14.2%	17.2%	11.0%	9.3%	7.7%
Current ratio	1.19×	1.22×	1.12×	1.17×	0.95×	1.25×	0.9×	1.49×
Debt / equity	0.54×	0.73×	0.82×	0.69×	1.14×	1.67×	2.16×	1.98×
Interest coverage	17.16×	14.49×	9.29×	7.98×	8.09×	3.31×	4.16×	3.82×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	41.3%	35.2%	26.3%	21.6%	32.3%	25.0%	24.6%	23.1%
Return on invested capital	25.2%	20.2%	14.9%	11.8%	14.6%	12.3%	8.6%	8.1%
Return on assets	19.8%	16.2%	11.1%	9.2%	11.5%	7.0%	5.5%	4.7%
Free cash flow yield	2.4%	1.8%	3.2%	1.2%	-0.0%	0.8%	-2.2%	-2.5%
Earnings yield	2.8%	2.3%	2.5%	3.4%	1.9%	1.2%	1.3%	1.0%
Enterprise value	$402B	$393B	$224.9B	$140.3B	$279B	$248.7B	$153B	$123.1B
Net debt / EBITDA	0.18×	0.39×	0.46×	0.45×	0.63×	0.66×	0.95×	0.71×
Cash conversion cycle (days)	7	3	6	6	-8	-7	-12	-7