Latest Ratios: P/E Ratio 28.5x · EV/EBITDA 10.2x · ROE 42.8%. (2001–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $300.5B | $404.8B | $391.5B | $218.9B | $133.1B | $274.3B | $245.6B | $146.2B | $120.8B | $85.8B | $54.3B |
| Enterprise Value | $305.9B | $410.2B | $401.7B | $228.7B | $142.3B | $286.4B | $255.9B | $157.5B | $127.4B | $89.5B | $56.2B |
| P/E Ratio → | 28.52 | 37.06 | 45.02 | 40.58 | 29.49 | 53.79 | 88.64 | 78.35 | 99.89 | 153.60 | 287.91 |
| P/S Ratio | 6.65 | 8.96 | 10.04 | 6.49 | 4.21 | 9.24 | 9.83 | 7.25 | 7.65 | 7.34 | 6.15 |
| P/B Ratio | 11.70 | 15.21 | 15.82 | 10.63 | 6.41 | 17.31 | 22.19 | 19.28 | 23.06 | 23.95 | 20.26 |
| P/FCF | 31.76 | 42.78 | 56.56 | 31.60 | 82.23 | — | 127.30 | — | — | — | — |
| P/OCF | 29.61 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 4.50 | 9.64 | 10.24 | 7.82 | 8.06 | 7.65 | 6.36 |
| EV / EBITDA | 10.17 | 13.64 | 15.42 | 10.63 | 7.12 | 15.37 | 16.50 | 13.21 | 13.81 | 12.59 | 10.59 |
| EV / EBIT | 22.95 | 30.39 | 37.60 | 32.89 | 23.83 | 43.36 | 55.81 | 58.61 | 77.33 | 106.67 | 136.87 |
| EV / FCF | — | 43.36 | 58.03 | 33.02 | 87.91 | — | 132.65 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% | 17.3% | 14.6% | 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 0.69 | 1.14 | 1.67 | 2.16 | 1.98 | 1.81 | 1.26 |
| Debt / EBITDA | 0.48 | 0.48 | 0.69 | 0.79 | 0.72 | 0.97 | 1.19 | 1.37 | 1.12 | 0.91 | 0.63 |
| Net Debt / Equity | — | 0.20 | 0.41 | 0.48 | 0.44 | 0.76 | 0.93 | 1.50 | 1.25 | 1.03 | 0.71 |
| Net Debt / EBITDA | 0.18 | 0.18 | 0.39 | 0.46 | 0.46 | 0.65 | 0.66 | 0.95 | 0.71 | 0.52 | 0.36 |
| Debt / FCF | — | 0.57 | 1.47 | 1.42 | 5.69 | — | 5.34 | — | — | — | — |
| Interest Coverage | 17.38 | 17.38 | 14.87 | 9.29 | 8.45 | 8.63 | 3.31 | 4.29 | 3.92 | 2.37 | 2.74 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 20.87 | 18.61 | 19.94 | 18.32 | 9.89 | 8.92 | 8.23 | 13.16 | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 2.7% | 2.2% | 2.5% | 3.4% | 1.9% | 1.1% | 1.3% | 1.0% | 0.7% | 0.3% |
| FCF Yield | 3.1% | 2.3% | 1.8% | 3.2% | 1.2% | — | 0.8% | — | — | — | — |
| Buyback Yield | 3.0% | 2.3% | 1.6% | 2.8% | 0.0% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.0% | 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 |
Includes 30+ ratios · 25 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
Bull/bear thesis, analyst target revisions, and earnings execution.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying NFLX stock.
Netflix, Inc.'s current P/E ratio is 28.5x. The historical average is 54.1x. This places it at the 22th percentile of its historical range.
Netflix, Inc.'s current EV/EBITDA is 10.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.8x.
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%.
Based on historical data, Netflix, Inc. is trading at a P/E of 28.5x. This is at the 22th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Netflix, Inc. has 48.5% gross margin and 29.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Netflix, Inc.'s Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Content cost volatility
Metrics are mathematically derived from official filings.
Growth Priced at Discount
NFLX trades at 28.3x trailing earnings but only 19.9x forward, with a PEG of 0.86, suggesting the market prices in decelerating growth despite accelerating revenue, per recent filings.
The forward P/E of 19.9x is below the trailing multiple, implying expected earnings growth that may already be reflected in consensus estimates. Compared to Disney's 14.1x and Comcast's 4.5x, NFLX commands a premium, but its PEG below 1.0 indicates that growth is not fully priced in. The EV/EBITDA of 10.1x is lower than WBD's 13.4x, suggesting relative undervaluation on an enterprise basis, possibly due to higher margins and lower debt.
Margin Expansion on Content Leverage
Gross margin improved to 51.9% in 2026Q2 from 45.9% in 2025Q4, while operating margin reached 33.4%, reflecting strong operating leverage, as reported in financial statements.
The sequential gross margin expansion of 600 basis points indicates better content amortization efficiency, likely from a favorable mix of original programming and reduced production costs. Operating margin expansion outpaced gross margin, highlighting fixed cost leverage in technology and marketing. However, the 2026Q1 net margin of 43.1% was inflated by a one-time tax benefit, so investors should focus on operating margin as the cleaner measure of earning power.
ROIC Climbing Steadily
ROIC rose to 9.2% in 2026Q2 from 5.0% in 2024Q4, while ROE improved to 11.1% from 7.9%, indicating compounding returns on invested capital, per recent balance sheet data.
The improvement in ROIC is driven by margin expansion rather than asset turnover, which remained flat at 0.21. This suggests that Netflix is generating higher returns from its content library without needing additional capital intensity. ROE also benefited from a lower equity base due to buybacks, but the underlying profitability is the primary driver. The trend indicates that Netflix is successfully converting its scale into shareholder returns.
Working Capital Efficiency Stable
Asset turnover held steady at 0.21 over the past ten quarters, while DSO averaged around 14 days, indicating efficient receivables management, as per financial statements.
The stable asset turnover reflects Netflix's asset-light model, where content is the primary investment and is amortized over time. DSO of 14 days is low, indicating prompt subscriber collections, but DPO of 12 days is also low, suggesting limited supplier leverage. The cash conversion cycle is not fully calculable due to missing DIO, but the working capital swings in cash flow statements point to timing effects from content payments, which investors should monitor.
Leverage Easing as Debt Matures
Debt-to-equity improved to 0.47 in 2026Q2 from 0.77 in 2024Q1, with D/EBITDA down to 3.37 from 2.58, indicating reduced leverage, based on reported figures.
The decline in D/E and D/EBITDA reflects both debt reduction and equity growth from retained earnings. Interest coverage of 24.2x in 2026Q2 is robust, up from 12.1x in 2024Q4, indicating comfortable debt service. However, the spike in D/EBITDA to 3.37 in 2026Q2 from 1.74 in 2026Q1 is likely due to seasonal EBITDA fluctuations, not a fundamental deterioration. Overall, refinancing risk appears low given the improving leverage metrics.
Liquidity Buffer Strengthens
Current ratio improved to 1.14 in 2026Q2 from 0.95 in 2024Q2, with cash at $9.1B, providing a solid buffer against content payment timing, per balance sheet data.
The current ratio above 1.0 indicates that current assets cover current liabilities, which is crucial given the lumpy nature of content payments. The quick ratio equals the current ratio, reflecting minimal inventory, typical for a digital service. While the liquidity position is adequate, the aggressive buyback pace ($4.7B in 2026Q2) may strain liquidity if cash flows dip, but the current cash balance provides a cushion.
Misapplied P/E on Content Model
The P/E ratio is commonly misapplied to Netflix because content amortization distorts earnings, making EV/EBITDA or P/FCF more appropriate, as per industry analysis.
Netflix's content spending is expensed over time, but cash outlays occur upfront, causing earnings to lag cash flows. The P/E of 28.3x may overstate valuation if content investments are growing, while EV/EBITDA of 10.1x better captures the enterprise value relative to operating performance. Additionally, P/FCF of 31.6x reflects the lumpy cash flow, but investors should adjust for content spend to get a normalized FCF. Thus, EV/EBITDA is a more reliable multiple for this business model.