Netflix, Inc. (NFLX) Financial Ratios
25 years of historical data (2001–2025) · Communication Services · Entertainment
EV/EBITDA
↓
12.61
+1% vs avg
5yr avg: 12.46
30Y Low3.0·High60.4
P/FCF
↓
39.53
↓-26% vs avg
5yr avg: 53.29
30Y Low6.0·High136.0
P/B Ratio
↓
14.32
+10% vs avg
5yr avg: 13.07
30Y Low3.5·High32.9
ROE
↑
42.8%
↓+26% vs avg
5yr avg: 34.0%
30Y Low-25%·High66%
Debt/EBITDA
↓
0.48
↓-36% vs avg
5yr avg: 0.76
30Y Low0.0·High1.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
NFLX Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Netflix, Inc. trades at 34.9x earnings, 15% below its 5-year average of 41.1x, sitting at the 28th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.5x, the stock trades at a premium of 124%. On a free-cash-flow basis, the stock trades at 39.5x P/FCF, 26% below the 5-year average of 53.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $374.0B | $404.8B | $391.5B | $218.9B | $133.1B | $274.3B | $245.6B | $146.2B | $120.8B | $85.8B | $54.3B |
| Enterprise Value | $379.5B | $410.2B | $401.7B | $228.7B | $144.9B | $286.4B | $255.9B | $157.5B | $127.4B | $89.5B | $56.2B |
| P/E Ratio → | 34.89 | 37.06 | 44.95 | 40.47 | 29.64 | 53.59 | 88.93 | 78.35 | 99.89 | 153.60 | 287.91 |
| P/S Ratio | 8.28 | 8.96 | 10.04 | 6.49 | 4.21 | 9.24 | 9.83 | 7.25 | 7.65 | 7.34 | 6.15 |
| P/B Ratio | 14.32 | 15.21 | 15.82 | 10.63 | 6.41 | 17.31 | 22.19 | 19.28 | 23.06 | 23.95 | 20.26 |
| P/FCF | 39.53 | 42.78 | 56.56 | 31.60 | 82.23 | — | 127.30 | — | — | — | — |
| P/OCF | 36.85 | 39.88 | 53.18 | 30.09 | 65.68 | 698.70 | 101.19 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
NFLX EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Netflix, Inc.'s enterprise value stands at 12.6x EBITDA, roughly in line with its 5-year average of 12.5x. The Communication Services sector median is 8.7x, placing the stock at a 45% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 9.08 | 10.30 | 6.78 | 4.58 | 9.64 | 10.24 | 7.82 | 8.06 | 7.65 | 6.36 |
| EV / EBITDA | 12.61 | 13.64 | 15.42 | 10.63 | 7.25 | 15.37 | 16.50 | 13.21 | 13.81 | 12.59 | 10.59 |
| EV / EBIT | 28.47 | 30.49 | 37.60 | 32.89 | 24.27 | 43.36 | 55.81 | 58.61 | 77.33 | 106.67 | 136.87 |
| EV / FCF | — | 43.36 | 58.03 | 33.02 | 89.51 | — | 132.65 | — | — | — | — |
NFLX Profitability
Margins and return-on-capital ratios measuring operating efficiency
Netflix, Inc. earns an operating margin of 29.5%. Operating margins have expanded from 20.6% to 29.5% over the past 3 years, signaling improving operational efficiency. Return on equity of 42.8% is exceptionally high. ROIC of 29.8% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.5% | 48.5% | 46.1% | 41.5% | 39.4% | 41.6% | 38.9% | 38.3% | 36.9% | 34.5% | 31.7% |
| Operating Margin | 29.5% | 29.5% | 26.7% | 20.6% | 17.8% | 20.9% | 18.3% | 12.9% | 10.2% | 7.2% | 4.3% |
| Net Profit Margin | 24.3% | 24.3% | 22.3% | 16.0% | 14.2% | 17.2% | 11.0% | 9.3% | 7.7% | 4.8% | 2.1% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 42.8% | 42.8% | 38.4% | 26.1% | 24.5% | 38.0% | 29.6% | 29.1% | 27.5% | 17.9% | 7.6% |
| ROA | 20.1% | 20.1% | 17.0% | 11.1% | 9.6% | 12.2% | 7.5% | 6.2% | 5.4% | 3.4% | 1.6% |
| ROIC | 29.8% | 29.8% | 23.9% | 16.6% | 14.0% | 18.8% | 17.1% | 12.7% | 12.6% | 10.6% | 7.7% |
| ROCE | 30.5% | 30.5% | 25.2% | 17.3% | 14.7% | 18.3% | 15.7% | 11.2% | 9.7% | 7.4% | 4.8% |
NFLX Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Netflix, Inc. carries a Debt/EBITDA ratio of 0.5x, which is very conservative (86% below the sector average of 3.4x). Net debt stands at $5.4B ($14.5B total debt minus $9.0B cash). Interest coverage of 17.2x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.54 | 0.54 | 0.73 | 0.82 | 0.81 | 1.14 | 1.67 | 2.16 | 1.98 | 1.81 | 1.26 |
| Debt / EBITDA | 0.48 | 0.48 | 0.69 | 0.79 | 0.85 | 0.97 | 1.19 | 1.37 | 1.12 | 0.91 | 0.63 |
| Net Debt / Equity | — | 0.20 | 0.41 | 0.48 | 0.57 | 0.76 | 0.93 | 1.50 | 1.25 | 1.03 | 0.71 |
| Net Debt / EBITDA | 0.18 | 0.18 | 0.39 | 0.46 | 0.59 | 0.65 | 0.66 | 0.95 | 0.71 | 0.52 | 0.36 |
| Debt / FCF | — | 0.57 | 1.47 | 1.42 | 7.28 | — | 5.34 | — | — | — | — |
| Interest Coverage | 17.16 | 17.16 | 14.49 | 9.29 | 7.98 | 8.09 | 3.31 | 4.16 | 3.82 | 2.37 | 2.53 |
NFLX Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.19x means Netflix, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.12x to 1.19x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.19 | 1.19 | 1.22 | 1.12 | 1.17 | 0.95 | 1.25 | 0.90 | 1.49 | 1.40 | 1.25 |
| Quick Ratio | 1.19 | 1.19 | 1.22 | 1.12 | 1.17 | 0.95 | 1.25 | 0.90 | 1.49 | 1.40 | 1.25 |
| Cash Ratio | 0.83 | 0.83 | 0.89 | 0.81 | 0.76 | 0.71 | 1.05 | 0.73 | 0.58 | 0.52 | 0.38 |
| Asset Turnover | — | 0.81 | 0.73 | 0.69 | 0.65 | 0.67 | 0.64 | 0.59 | 0.61 | 0.61 | 0.65 |
| Inventory Turnover | 28.91 | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | 18.61 | 19.94 | 18.32 | 9.89 | 8.92 | 8.23 | 13.16 | — | — |
NFLX Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Netflix, Inc. returns 2.4% to shareholders annually primarily through share buybacks. The earnings yield of 2.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 2.7% | 2.2% | 2.5% | 3.4% | 1.9% | 1.1% | 1.3% | 1.0% | 0.7% | 0.3% |
| FCF Yield | 2.5% | 2.3% | 1.8% | 3.2% | 1.2% | — | 0.8% | — | — | — | — |
| Buyback Yield | 2.4% | 2.3% | 1.6% | 2.8% | 0.0% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.4% | 2.3% | 1.6% | 2.8% | 0.0% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $4.3B | $4.4B | $4.5B | $4.5B | $4.6B | $4.5B | $4.5B | $4.5B | $4.5B | $4.4B |
Peer Comparison
Compare NFLX with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 NFLXYou | $374B | 34.9 | 12.6 | 39.5 | 48.5% | 29.5% | 42.8% | 29.8% | 0.5 |
 DIS | $191B | 15.8 | 12.0 | 19.0 | 37.8% | 14.6% | 11.3% | 6.9% | 2.3 |
 WBD | $68B | 93.8 | 13.8 | 22.1 | 28.2% | 3.5% | 2.0% | 1.5% | 4.7 |
 CMCSA | $96B | 4.9 | 5.3 | 4.4 | 60.1% | 16.7% | 21.6% | 8.2% | 3.0 |
 AMZN | $3.0T | 38.3 | 20.7 | 384.3 | 50.3% | 11.2% | 22.3% | 14.7% | 1.0 |
 AAPL | $4.2T | 38.5 | 29.7 | 42.7 | 46.9% | 32.0% | 171.4% | 67.4% | 0.8 |
 GOOGL | $4.8T | 36.8 | 32.2 | 65.7 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 FUBO | $307M | -43.5 | — | — | 11.1% | -2.6% | 11.0% | -3.3% | — |
 SIRI | $9B | 11.9 | 9.0 | 7.2 | 47.0% | 17.2% | 7.1% | 5.2% | 4.7 |
 ROKU | $19B | 216.9 | 54.3 | 39.5 | 43.8% | -0.1% | 3.4% | -0.3% | 2.6 |
 MSFT | $3.1T | 30.3 | 19.4 | 42.9 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
| Communication Services Median | — | 15.5 | 8.7 | 11.6 | 49.1% | 0.9% | 2.2% | 3.3% | 3.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonNFLX — Frequently Asked Questions
Quick answers to the most common questions about buying NFLX stock.
What is Netflix, Inc.'s P/E ratio?
Netflix, Inc.'s current P/E ratio is 34.9x. The historical average is 54.1x. This places it at the 28th percentile of its historical range.
What is Netflix, Inc.'s EV/EBITDA?
Netflix, Inc.'s current EV/EBITDA is 12.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.8x.
What is Netflix, Inc.'s ROE?
Netflix, Inc.'s return on equity (ROE) is 42.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 22.8%.
Is NFLX stock overvalued?
Based on historical data, Netflix, Inc. is trading at a P/E of 34.9x. This is at the 28th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Netflix, Inc.'s profit margins?
Netflix, Inc. has 48.5% gross margin and 29.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Netflix, Inc. have?
Netflix, Inc.'s Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.