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

Netflix · Communication Services · ref. ETF XLC · price $70.46
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In short — Netflix trades at 22.2× earnings (P/E), 18.5× forward, with a net margin of 28.2 % and revenue growth of +13 %. Read: Fairly valued (P/E 19 in line with ~11% growth (PEG 1.7)).

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
$70.46-42.0% over range
Oct 14, 25low $67.06 · high $124.14Oct 13, 26
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71% recommend buying · 24 analysts
Valuation : Fairly valued — P/E 19 in line with ~11% growth (PEG 1.7)

Valuation

22.2
P/E (price/earnings)
18.5
Forward P/E
2.00
PEG
9.7
Price/book (P/B)
$293.4B
Market cap
3.18
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 22.2 (forward 18.5). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Fairly valued".

Is Netflix profitable?

Netflix has a net margin of 28.2 % (EPS 3.18). The company is profitable.

Is NFLX stock expensive?

Our read: "Fairly valued" — P/E 19 in line with ~11% growth (PEG 1.7). Cross-check with growth and sector.

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