Netflix (NFLX) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Netflix

NasdaqGS•Communication Services•Entertainment

$63.42+1.08(0.02%)After hours

Market Cap

$257.74B

P/E

17.5x

P/S

5.2x

P/B

8.8x

Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.

How this company scores

ExcellentMetricSide Score: 94/100

Strongest: Profitability (25/25); weakest: Cash & Earnings Quality (23/25).

Profitability25/25

Growth23/25

Balance Sheet & Red Flags23/25

Cash & Earnings Quality23/25

Strengths

Rising free cash flowStrong marginsHigh ROERising earnings

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 17.5x5y range 15.6x – 55.6x

Currently below its 20-quarter median.

P/S · 5.2x5y range 2.6x – 13.7x

Currently below its 20-quarter median.

P/B · 8.8x5y range 4.2x – 22.8x

Currently near its 20-quarter median.

Price & Volume

Market Cap $257.74B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $49.73B
Q. Revenue: $12.87B
TTM EBITDA: $15.96B
TTM Op. Income: $15.56B
Q. Op. Income: $4.46B
TTM Net Income: $14.77B
Q. Net Income: $3.66B
EPS: $0.89
Shares Out.: $4.13B

$49.73B in TTM revenue grew 14.7% YoY, reaching $12.87B last quarter. TTM EBITDA of $15.96B and TTM operating income of $15.56B show growth is flowing through to the bottom line. TTM net income of $14.77B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 52.8%
EBITDA Margin: 35.5%
Op. Margin: 34.6%
Net Margin: 28.5%

Op. margin of 34.6% is up 6.4% YoY — cost efficiency is improving. Net margin at 28.5% and gross margin of 52.8% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 3 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 17.5x
P/S Ratio: 5.2x
P/B Ratio: 8.8x

At 17.5x P/E, the stock trades within typical market levels. P/S of 5.2x and P/B of 8.8x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 5 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $58.68B
Cash: $8.20B
Long-Term Debt: $12.66B
Book Value: $29.29B
D/E Ratio: 0.4
Debt/EBITDA: 2.8

With $58.68B in assets and $12.66B in long-term debt, D/E is 0.4and book value is $29.29B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 22% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $3.16B
TTM Free Cash Flow: $11.38B
FCF Margin: 22.9%
FCF / Net Income: 0.8

TTM FCF of $11.38B on $3.16B in operating cash flow. The FCF / Net Income ratio of 0.8x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 27% — an improving trend.