WallStSmart
NFLX

Netflix Inc

NASDAQ: NFLX · COMMUNICATION SERVICES · ENTERTAINMENT

$80.34
-1.14% today

Updated 2026-06-12

Market cap
$350.89B
P/E ratio
26.88
P/S ratio
7.48x
EPS (TTM)
$3.10
Dividend yield
52W range
$75 – $134
Volume
38.5M

Netflix Inc (NFLX) Stock Valuation Analysis

Fair value estimate, historical valuation range, and quality signals for NFLX.

WallStSmart Verdict
Attractively
Valued

Fundamentals support the current valuation. Strong combination of growth, quality, and price.

Smart Value Score: 75 / 100
P/E (TTM)
26.9x
vs 5Y median of 34.7x
PEG
1.69
Fair range
Margin of Safety
-50.79%
Fair value $53.99 vs $80.34
EV / EBITDA
10.7x

NFLX historical valuation range

Where current P/E sits in NFLX's own 5Y range.

NOW
15.5x
5Y Low
30.4x
25th
34.7x
Median
41.5x
75th
57.0x
5Y High
NFLX is trading cheaper than 92% of the last 5Y.
8th percentile · Historically cheap

NFLX intrinsic value (DCF)

DCF-based fair value estimate vs current market price.

Current price
$80.34
Market value
Intrinsic value
$53.99
DCF estimate
Margin of safety
-50.79%
-32.8% upside to fair value

Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.

NFLX valuation signals

Quick-read green flags, caution flags, and risks based on current metrics.

!
PEG in fair range
PEG of 1.69 suggests price reflects growth fairly. Neither a bargain nor overpriced.
P/E near 5Y low
Current P/E sits in the 8th percentile of its 5Y range. Historically cheap relative to its own history.
Premium to fair value
Price exceeds DCF intrinsic value by 50.8%. Limited downside protection.

P/E Ratio — History

Current: 26.88x

P/S Ratio — History

Current: 7.48x

Is NFLX overvalued in 2026?

Netflix Inc (NFLX) currently trades at $80.34 per share with a market capitalization of $350,885,839,000.00. Based on our multi-factor framework, the stock looks attractively valued with a Smart Value Score of 75/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.

The stock trades at a P/E ratio of 26.9x, below its 5-year median of 34.7x. The PEG ratio of 1.69 points to a price that reasonably reflects expected earnings growth.

Looking at its own history, NFLX is currently trading cheaper than 92% of the last 5Y on P/E. This places it in the 8th percentile of its historical range, a level that has historically coincided with attractive entry points.

Our discounted cash flow model estimates NFLX's intrinsic value at $53.99 per share, against the current market price of $80.34. This implies a premium to fair value of -50.79%. The current price sits well above what projected cash flows justify, implying investors are paying for growth that has not yet materialized.

The Piotroski F-Score of 6/9 puts financial quality in a middling range, neither a standout strength nor an obvious red flag.

Bottom line: NFLX looks attractively valued on our framework, with a Smart Value Score of 75/100. The combination of reasonable price, healthy growth, and quality fundamentals makes it worth serious consideration.

Frequently asked questions

Is NFLX overvalued?

NFLX scores 75/100 on our Smart Value Score (Grade B+), a strong overall profile. On valuation specifically, the DCF puts intrinsic value below the current price, so the stock is expensive on cash flow today. The score reflects growth and quality carrying it, not a cheap entry point.

What is NFLX's fair value?

Our DCF model estimates NFLX's intrinsic value at $53.99 per share, versus the current price of $80.34, a margin of safety of -50.79%. Fair value is the present value of the cash flows we project the business to produce, so a price above it means the market is paying up for growth the model does not yet assume.

What P/E ratio does NFLX trade at?

NFLX trades at a P/E of 26.9x on trailing twelve-month earnings, against a 5-year median of 34.7x. P/E is what you pay per dollar of profit, and sitting below its own median means the stock is cheaper than usual relative to its earnings.

Is NFLX a buy based on valuation?

Our Smart Value rating for NFLX is Buy, from a Smart Value Score of 75/100 that blends growth, quality, and valuation. The rating leans on growth and financial strength, and valuation is usually the weakest leg for a name scoring this high. This is research to inform your decision, not personalized financial advice.

How does NFLX's valuation compare to its history?

On P/E, NFLX sits in the 8th percentile of its own 5Y range, historically cheap relative to where it has traded. A low percentile means today's multiple is near the bottom of its historical band.

What is NFLX's Smart Value Score?

NFLX's Smart Value Score is 75/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.