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XStocksXray
Research report · 16 October 2026

Netflix Inc (NFLX)

Communication Services · Movies & Entertainment · US stock · price as of 16 Oct 2026

Key indicators

Price$70.53
52-week range$65.08 – $124.86
Market cap$300.5B
P/E (trailing)17.2×
EV / EBITDA20.8×
Free-cash-flow yield3.7%
Dividend yield–
Revenue (last 12 months)$48.4B
Revenue growth (3y a year)12.6%
Operating margin29.7%
Return on invested capital31.5%
Net debt / EBITDA0.5×

Fair value

Blended fair value$81.50 range $76 – $88
Versus priceFair+16% to fair value
Peer multiples$65.68
Fundamentals-adjusted multiple$79.37
10-year DCF (market-scaled)$99.44
Earnings power value (floor, not blended)$24.49
Model uncertaintyMedium

X-Ray Score

58/ 100 · High confidence · ahead of 72% of sector peers
Valuation47
Growth64
Profitability57
Financial health68
Dividends–

Five-year price chart navy: price · brown: 200-day average · blue band: fair value range

9.6042.4475.28108141Fair value $812021-102023-012024-042025-072026-10

Executive summary

Netflix is a streaming entertainment service that offers films, series, documentaries and games to members around the world. It produces original content and licenses titles from other studios. The company earns money mainly from monthly subscription fees, and it has added lower priced plans that include advertising. Spending on content is a major cost, and growth in members and pricing are key drivers.

Revenue for the last twelve months was $48.4 billion, and it grew by 12.6% a year over three years. The operating margin is 29.7%, and return on invested capital reached 32%. Net debt to EBITDA is 0.5 times. It does not pay a dividend.

StocksXray gives Netflix Inc an X-Ray Score of 58 out of 100 (high confidence), ahead of 72% of the S&P 500 stocks in its sector. Its strongest lens is financial health (68) and its weakest is valuation (47).

Our fair value blend is $81.50 (range $76.28 to $87.91). At $70.53 the stock trades 13% below that blend, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.

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Netflix Inc (NFLX)

Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months

FY2021FY2022FY2023FY2024FY2025Now
Price$60.24$29.49$48.69$89.13$93.76$70.53
Market cap$27.4B$13.3B$218.9B$391.5B$407.3B$300.5B
P/E5.4×3.0×40.6×45.0×37.1×17.2×
EV / revenue1.2×0.7×6.7×10.2×9.1×6.3×
EV / EBITDA5.7×3.6×30.9×37.0×30.2×20.8×
Price / free cash flow–8.2×31.6×56.6×43.0×27.0×
Free-cash-flow yield−0.5%12.2%3.2%1.8%2.3%3.7%
Price / book1.7×0.6×10.6×15.8×15.3×10.0×
Dividend yield––––––

Fundamentals checklist ● 7 Good · ● 7 Average · ● 2 Bad · each check graded against the sector

Cash quality

Earnings backed by cash2.9%Bad
Free-cash-flow yield3.7%Average

Risk models

Altman Z score5.8×Good
Piotroski F-Score7 of 9Good

Growth

EPS growth (3y)−36.6%Bad
Free-cash-flow growth (3y)80.1%Good
Revenue growth (3y)12.6%Good
Growth consistency100%Good

Balance sheet

Current ratio1.1×Average
Net debt / EBITDA0.5×Average
Interest cover16.9×Average

Valuation

Fair value vs price1.2×Average
EBIT / EV yield4.7%Average

Profitability

Return on invested capital31.5%Good
Operating margin29.7%Good
Gross profitability40.6%Average
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Netflix Inc (NFLX)

Financials US$ millions, from SEC filings; last column is the last twelve months

Income statementFY21FY22FY23FY24FY25LTM
Revenue29,69831,61633,72339,00145,18348,371
Gross profit12,36512,44714,00817,96321,90823,759
Operating income6,1955,6336,95410,41813,32714,355
Net income5,1164,4925,4088,71210,98113,649
Diluted EPS ($)11.249.951.201.982.534.09
Free cash flow-1321,6196,9266,9229,46111,152
Gross margin41.6%39.4%41.5%46.1%48.5%49.1%
Operating margin20.9%17.8%20.6%26.7%29.5%29.7%
Net margin17.2%14.2%16.0%22.3%24.3%28.2%
Balance sheetFY21FY22FY23FY24FY25LTM
Total assets44,58548,59548,73253,63055,59758,450
Cash6,0285,1477,1177,8059,0349,099
Total debt15,39314,35314,54315,58314,46314,309
Equity15,84920,77720,58824,74426,61530,152
Dividend per share ($)––––––

Revenue and net income US$ billions: navy revenue, teal net income

FY21FY22FY23FY24FY25

Margins blue gross, teal operating, brown net

0%16%32%48%FY21FY22FY23FY24FY25

Latest quarters

Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue ($M)10,54311,07911,51012,05112,25012,560
Growth vs a year earlier+12.5%+15.9%+17.2%+17.6%+16.2%+13.4%
Net income ($M)2,8903,1252,5472,4185,2833,401
Diluted EPS ($)0.660.725.87–1.230.80
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Netflix Inc (NFLX)

Peers in Movies & Entertainment

CompanyX-Ray
NFLX · Netflix Inc58
DIS · Walt Disney Co55
TKO · TKO Group Holdings, Inc.45
LYV · Live Nation Entertainment,...41

Market Compass outlook for Communication Services: Favourable (76/100). It blends regime history, macro sensitivity, momentum and valuation.

Returns

1 week+0.3%
1 month−6.3%
3 months+4.3%
6 months−27.5%
1 year−41.4%
3 years+92.8%
5 years+11.5%

Technical summary

DailyBearish3 bullish · 4 neutral · 9 bearish
WeeklyStrongly bearish1 bullish · 1 neutral · 10 bearish
MonthlyStrongly bearish0 bullish · 1 neutral · 7 bearish
50-day / 200-day average$75.09 / $82.88
52-week low / high$65.08 / $124.86
Classic pivot, support and resistanceS2 68.59 · S1 69.56 · P – · R1 71.70 · R2 72.87
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Netflix Inc (NFLX)

Strengths

  • Return on invested capital of 31.5% is ahead of 81% of its sector peers.
  • Operating margin of 29.7% is ahead of 81% of its sector peers.
  • Revenue growth of 12.6% a year over three years is ahead of 69% of its sector peers.
  • Piotroski F-Score of 7 out of 9: most of the nine accounting health tests pass.

Risks and weak spots

  • Earnings backed by cash is weak against Communication Services peers (2.9%).
  • EPS growth (3y) is weak against Communication Services peers (−36.6%).

Latest SEC filings

DateFormItems
30 Jul 20268-K5.02
22 Jul 20268-K8.01,9.01
21 Jul 2026424B5
17 Jul 202610-Q
16 Jul 20268-K2.02,9.01
5 Jun 20268-K5.07,8.01
23 Apr 20268-K8.01
17 Apr 202610-Q

How to read this report

Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.

stocksxray.com · page 5 · generated 19 Oct 2026