Netflix Inc (NFLX) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Netflix Inc stock $73.03, price $65.56, upside +11.4%, quality 88 out of 100. Rating: undervalued. Calculated from audited financials with 22 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $16.64 – $133.91 · fair‑value band $46.47 – $133.12 · the $65.56 price screens below the $73.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages.
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It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.
Stock analysis
Netflix Inc (NFLX) currently trades at $65.56, while our model-based Fair Value estimate is $73.03, implying the stock looks roughly 10% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $85.96 per share, and 8 of the 22 models we run sit above the $65.56 price.
Bear case: the Economic Profit group reads lowest at $25.50, and 14 of the 22 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $46.47 (bear) to $133.12 (bull), the price of $65.56 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 88/100 (high quality), in the Communication Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Netflix Inc reported revenue of $45.2B in FY2025 versus $29.7B in FY2021, a compound +11.1%/yr. Reported net income was $11.0B in FY2025, compounding +21.0%/yr from FY2021.
Key figures
Market cap $279B Mega · P/E ratio 18.9 · P/S ratio 5.62 · EPS (TTM) $3.46 · Net margin 29.7% · Return on equity 53.5% · Return on assets (EBIT) 16.6% · Operating margin 34.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 98 out of 100 (medium confidence).
What moves the price
The share trades about 43% below its 52-week high and 6% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at −41% fair-value upside, at 11%, NFLX screens cheaper than that median.
Fair Value models
Bear$46.47Fair Value $73.03Bull$133.12
Price $65.56 · Upside +11.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.94 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 7 officers or directors sold shares worth $56.4M and none bought.
SaleSpencer Adam NeumannChief Financial Officer7× since Feb 6, 2026: 151,522 shares, avg. $91.99$13.9MNov 4, 2026
SaleTheodore A SarandosCo-CEO, Director3× since May 5, 2026: 187,786 shares, avg. $74.26$13.9MNov 4, 2026
SaleDavid A HymanChief Legal Officer5× since Jan 16, 2026: 46,338 shares, avg. $82.44$3.8MNov 4, 2026
SaleBradford L SmithDirector3× since Jan 15, 2026: 85,760 shares, avg. $78.89$6.8MOct 26, 202610b5-1 plan
SaleRichard N BartonDirector3× since Aug 5, 2026: 4,320 shares, avg. $75.74$327,190Sep 10, 202610b5-1 plan
SaleGregory K PetersCo-CEO, Director4× since Jan 29, 2026: 187,717 shares, avg. $82.45$15.5MAug 6, 2026
SaleReed HastingsDirector7× since Dec 1, 2025: 2,818,080 shares, avg. $93.56$263.7MJun 1, 202610b5-1 plan
SaleCletus R WillemsChief Global Affairs Officer2× since Nov 6, 2025: 3,374 shares, avg. $154.46$521,132Feb 10, 2026
Plus 17 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.97/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+15.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.6%
Start year 2020 (pandemic). Over 10 years: +20.9% a year
Revenue growth 25 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+33.0%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+28.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+28.3%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.33.1% vs 50.5%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.18% → 30%
2025 sits 111% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+18.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+9.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +15.4% a year for the price and +7.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (91 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Data and content advantages support Netflix's moat, yet competition and retention signals limit the durability of that advantage.
Main risk: Free or low-cost platforms such as YouTube and TikTok could draw viewers away from Netflix subscriptions with inexpensive user-generated short-form content, pressuring subscriber growth and margins.
Bull case: Netflix could integrate short-form formats and leverage generative AI tools to cut production costs while retaining its premium content edge.
Bear case: If short-form platforms capture more attention, Netflix might face sustained subscriber stagnation and margin compression in a fragmented entertainment market.
Netflix trimmed its 2026 advertising revenue target after some new ad product features rolled out more slowly than planned, even while the tier itself continues to expand rapidly. At the same time the company is cutting staff and changing content leadership to tackle softer viewership growth, especially in the US. Will better execution on advertising tools and programming restore momentum, or will competition for viewer attention keep limiting the pace of expansion?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Entertainment · 223 stocks
Beats the industry median on 9/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score88 · Top 25%
Fair Value upside+11.4% · Above median
Profitability
Return on equity (12 months)53.5% · Top 25%
Return on assets19.8% · Top 25%
Net margin (12 months)29.7% · Top 25%
Operating margin (12 months)34.6% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)11.8% · Above median
Balance sheet
Debt / equity0.51× · Highest 25%
Valuation Multiplesvs Entertainment median · lower = cheaper
P/E (12 months)18.9× · Cheaper than median
P/B10.50× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)5.62× · Priciest 25%
Price / free cash flow (fiscal year)29.5× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Netflix Inc Fair Value". https://www.fairvalue-calculator.com/stock/NFLX
Frequently asked questions
Is Netflix Inc (NFLX) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $73.03 versus a price of $65.56, about +11% upside (undervalued).
What is the fair value of NFLX?
Our model-based fair value for Netflix Inc is $73.03 (as of Nov 5, 2026), built from audited fundamentals. The current price: $65.56.
What is the quality score of NFLX?
Netflix Inc has a Quality Score of 88/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Netflix Inc (NFLX)?
Our model-based price target is the fair value of $73.03 (as of Nov 5, 2026) from 22 valuation models. Cautious scenario $46.47, optimistic scenario $133.12. It is a calculation from audited fundamentals, not an analyst target.
What is the Netflix Inc stock forecast for 2026?
Our models put fair value at $73.03, about +11% upside versus a price of $65.56 (undervalued). Cautious scenario $46.47, optimistic scenario $133.12. The calculation is refreshed regularly with new filings.
What is the revenue of Netflix Inc (NFLX)?
Netflix Inc reported trailing-twelve-month revenue of about $49.7B (latest available figure, as of Nov 5, 2026).
What growth is priced into Netflix Inc (NFLX)?
For today's price to be fair in a discounted-cash-flow model, Netflix Inc would have to grow free cash flow by +18.1 % per year for five years (discount rate 10.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.6 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of NFLX use?
Our models discount Netflix Inc at 10.1 %: a base by market capitalisation (mega), damped by beta 1.61, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Netflix Inc that is +18.1 % per year a year over ten years, using the same discount rate (10.1 %) and the same formula as our fair value.
How much growth has Netflix Inc (NFLX) delivered so far?
Over the past 5 years revenue at Netflix Inc grew +12.6 % a year. The price currently implies +18.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Netflix Inc (NFLX) growing?
The median revenue growth in the sector is +3.6 % a year. That is the yardstick for the growth priced into Netflix Inc (+18.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Netflix Inc (NFLX)?
The free-cash-flow yield on the price is 3.39 %: that much free cash flow Netflix Inc produces per unit of market value. When it exceeds the discount rate of our models (10.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Netflix Inc (NFLX)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Netflix Inc it is $73.03 per share (as of Nov 5, 2026), against a price of $65.56. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Netflix Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, NFLX trades below its calculated fair value: price $65.56, fair value $73.03, a gap of about +11% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of NFLX?
No. The price is what the market pays today ($65.56); the fair value is what the company's own numbers justify ($73.03). For Netflix Inc the two are $7.47 per share apart. That gap is exactly why we show both numbers side by side.
How much is Netflix Inc worth?
The market values Netflix Inc at about $279B (market capitalisation, as of Nov 5, 2026). Per share that is $65.56; our models calculate a fair value of $73.03 per share.
What do the bullish and bearish scenarios say about NFLX?
Our models span a range for Netflix Inc: cautious scenario $46.47, base $73.03, optimistic $133.12 per share (as of Nov 5, 2026, price $65.56). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of NFLX?
Netflix Inc trades at a price-to-earnings ratio of 18.9 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $73.03 is built from several models across several years. Other multiples: PEG 1.0, P/B 10.5, P/S 5.6, EV/EBITDA 17.8.
What is the PEG ratio of NFLX?
The PEG ratio of Netflix Inc is 1.01 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Netflix Inc (NFLX)?
Balance-sheet figures for Netflix Inc (as of Nov 5, 2026): return on equity 53.5%, debt of 0.51 per unit of equity. They feed the Quality Score of 88/100, which measures business quality independently of the share price.
How far is NFLX from its 52-week high?
Netflix Inc trades at $65.56, about 43% below its 52-week high of $115.75 and 6% above the low of $61.99 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $73.03 is for.
Which stocks are comparable to Netflix Inc?
From the same area (Communication Services) we also value The Walt Disney Company, Live Nation Entertainment, Inc, TKO Group, Universal Music Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Netflix Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $65.56, calculated fair value $73.03 (+11%), Quality Score 88/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of NFLX calculated?
We run Netflix Inc through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $73.03, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Netflix Inc currently trades 10% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Netflix Inc (NFLX)?
The closing price on Nov 5, 2026 was $65.56. Our model-based fair value is $73.03, about +11% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Netflix Inc right now?
The model range is unusually wide ($46.47 to $133.12). The outcome hinges heavily on assumptions, so read the point estimate with caution. The price sits in the lower half of our model range, the side with the larger margin of safety. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Where does the earnings growth of Netflix Inc (NFLX) come from?
Earnings per share at Netflix Inc grew +51.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +20.9 %, EBIT margin +19.7 %, tax rate +2.0 %, residual (interest, one-offs) +2.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Netflix Inc
How large is the market capitalisation of Netflix Inc (NFLX)?
The market capitalisation of Netflix Inc is $279B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Netflix Inc (NFLX)?
The price-to-sales ratio of Netflix Inc is 5.62 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Netflix Inc (NFLX)?
Earnings per share at Netflix Inc are $3.46 (price ÷ EPS = P/E 18.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Netflix Inc (NFLX)?
The net margin of Netflix Inc is 29.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Netflix Inc (NFLX)?
The return on equity (ROE) of Netflix Inc is 53.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Netflix Inc (NFLX)?
On an EBIT basis the return on assets of Netflix Inc is 16.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Netflix Inc (NFLX)?
The operating margin of Netflix Inc is 34.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Netflix Inc (NFLX)?
Revenue at Netflix Inc is growing +11.8% versus a year earlier (3y avg +12.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Netflix Inc (NFLX)?
Earnings per share at Netflix Inc are growing +47.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Netflix Inc (NFLX) carry?
The net debt of Netflix Inc is $5.4B (fiscal year 2025, ≈ 0.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Nov 5, 2026