Netflix (NFLX) fundamentals: P/E, valuation, undervalued?

Netflix · Communication Services · ref. ETF XLC · price $79.84
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In short — Netflix trades at 25.7× earnings (P/E), 20.9× forward, with a net margin of 28.2 % and revenue growth of +13 %. Read: Fairly valued (P/E 21 in line with ~11% growth (PEG 1.9)).

Is Netflix stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.

📈 1-year price
$79.84-35.2% over range
Aug 28, 25low $67.6 · high $126.32Aug 27, 26
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74% recommend buying · 23 analysts
Valuation : Fairly valued — P/E 21 in line with ~11% growth (PEG 1.9)

Valuation

25.7
P/E (price/earnings)
20.9
Forward P/E
2.31
PEG
11.0
Price/book (P/B)
$332.4B
Market cap
3.11
EPS

Profitability & growth

28.2 %
Net margin
+13 %
Revenue growth
+11 %
Earnings growth
$16.7B
Total debt

Netflix income statement

Fiscal yearRevenueNet incomeMargin
2022$31.6B$4.5B14.2 %
2023$33.7B$5.4B16.0 %
2024$39.0B$8.7B22.3 %
2025$45.2B$11.0B24.3 %
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.

Frequently asked questions

What is Netflix's P/E and is the stock undervalued? What's a good P/E?

Netflix's P/E is 25.7 (forward 20.9). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Fairly valued".

Is Netflix profitable?

Netflix has a net margin of 28.2 % (EPS 3.11). The company is profitable.

Is NFLX stock expensive?

Our read: "Fairly valued" — P/E 21 in line with ~11% growth (PEG 1.9). Cross-check with growth and sector.

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