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Netflix, Inc. — Intrinsic Value & Fair Price

NFLX
NASDAQCommunication ServicesEntertainmentCIK 0001065280netflix.comAbout NFLX
Last close · Oct 16, 202670.53−2.08 (−2.86%)
Market cap$293.7B
Model value · DCF · Perpetuity growth · 5y
50.67
Netflix closed at $70.53 — overvalued by 39% vs model.
36.60the model's range84.96

DCF · Perpetuity growth · 5y leads for profitable growth — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
10.97 – 131.87
Wall St. target
87.50 19% below
Above model, 1y
22 of 22 days

Price and model value

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What the marks mean
Daily close

Research on NFLX

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How it is valued

Valued asProfitable Growth
Moderate growth (~16% recent)High profitability (24% net margin)Moderately volatile earnings
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
27.9×
EV / EBITDA
9.9×
FCF yield
3.2%
Dividend yield, TTM
0.00%
Beta
1.61
Cost of capital (WACC)
10.63%
Full financials

Analyst actions

third-party, quoted
10-16BMO Capital · target125.00
10-16Wedbush · target90.00
10-15Jefferies · target85.00
09-29Deutsche Bank · “Buy” from “Hold”upgrade
Ratings, targets and estimates

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just NFLX. No account.

About Netflix

Netflix, Inc. serves as a worldwide entertainment provider. Its comprehensive library features television series, motion pictures, documentaries, and mobile games, spanning numerous genres and languages. Members can effortlessly stream this content through a variety of internet-connected devices, including smart TVs, digital media players, cable boxes, and mobile phones. Furthermore, the company continues to offer a DVD-by-mail subscription service to its customers in the United States. With roughly 222 million paying subscribers distributed across 190 countries, Netflix was founded in 1997 and is headquartered in Los Gatos, California.

CEO
Theodore A. Sarandos
Headquarters
Los Gatos, CA
Employees
16,000
IPO
2002-05-23
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.