NetFlix Inc (NFLX) Valuation
Historical valuation analysis based on 1281 data points (2021-09-10 to 2026-10-16)
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collectiv...
NetFlix Inc (NFLX) currently trades at a P/E ratio of 21.52 (historical range: 15.05–62.50, median: 41.35), placing it at the 10th percentile — cheap relative to its history, P/S ratio of 6.07 (range: 2.48–14.39, 32th percentile — below its historical average), EV/EBITDA of 20.99 (range: 13.52–52.53, 11th percentile).
Over the historical period (2021-09-10 to 2026-10-16), NetFlix Inc's P/E ratio has expanded by 10% over the observed period (from an average of 37.9 to 41.8).
NetFlix Inc trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 21.52 | 41.35 | 10th | cheap relative to its history |
| P/S Ratio | 6.07 | 7.72 | 32th | below its historical average |
| EV/EBITDA | 20.99 | 34.00 | 11th | cheap relative to its history |
| FCF Yield | 3.80% | 1.91% | 98th | cheap relative to its history |
NetFlix Inc (NFLX) Valuation & P/E History
NetFlix Inc (NFLX) is a US-listed stock operating in the Consumer Cyclical sector, specifically the Services-Video Tape Rental industry currently trading at $70.31 with a market capitalization of $292.8 billion. This page provides historical valuation analysis for NFLX based on 1281 data points covering 2021-09-10 to 2026-10-16. The P/E ratio of 21.52 is below the historical median of 41.35, placing NFLX at the 10th percentile of its valuation range. The P/S ratio of 6.07 compares to a median of 7.72.
NFLX Valuation Metrics & Historical Range
The valuation table above shows NetFlix Inc's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether NFLX is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests NFLX is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for NetFlix Inc.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is NFLX Overvalued or Undervalued?
NetFlix Inc trades well below its historical valuation range across most metrics. The overall valuation percentile of 18 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive NFLX is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full NFLX analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.NFLX trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.