Netflix stock: fundamental analysis
Stocks · NFLX · Communication Services
Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 71.79 USD
- Market cap: 298.9B USD
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 49.5%: it earns a high return on shareholders' money. Out of every 100 in sales, 28.2 end up as profit.
Financial health
Net debt/EBITDA of 0.5x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
Growth
Revenue is growing 13.4% year on year: a solid pace. Earnings are up 11.1%.
Valuation
It trades at a P/E of 22.6, in line with the 21.9 median of the communication services companies we track. On expected earnings the P/E falls to 18.8: the market expects profits to rise.
Dividend
Netflix does not pay a dividend right now: it reinvests profits or returns cash through buybacks.
Tools
All metrics
| Netflix | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 49.5% | 39.3% |
| ROA | 16.1% | 13.0% |
| Gross margin | 49.1% | 49.1% |
| Operating margin | 33.4% | 33.4% |
| Net margin | 28.2% | 29.0% |
| Financial health | ||
| Net debt/EBITDA | 0.5x | 1.2x |
| Debt/equity | 0.6x | 0.4x |
| Current ratio | 1.1x | 1.1x |
| Growth | ||
| Revenue growth | 13.4% | 18.8% |
| Earnings growth | 11.1% | — |
| Valuation | ||
| P/E ratio | 22.6x | 21.9x |
| Forward P/E | 18.8x | 18.8x |
| EV/EBITDA | 21.8x | 16.1x |
| Price/book | 9.9x | 6.5x |
| FCF yield | 8.5% | 2.7% |
| Dividend | ||
| Dividend yield | — | 0.9% |
| Payout ratio | 0.0% | 19.4% |
| Beta (volatility) | 1.5x | 1.2x |
Frequently asked questions
What is Netflix's P/E ratio?
Netflix's P/E is 22.6 based on trailing 12-month earnings and 18.8 on expected earnings. The median for its sector among the companies we track is 21.9. Data as of September 18, 2026.
What dividend does Netflix pay?
Netflix does not pay a dividend right now: it reinvests profits or returns cash through buybacks.
Is Netflix stock expensive?
It trades at a P/E of 22.6, in line with the 21.9 median of the communication services companies we track. On expected earnings the P/E falls to 18.8: the market expects profits to rise. This is an educational reading based on ratios, not a buy or sell recommendation.
Does Netflix have a lot of debt?
Net debt/EBITDA of 0.5x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
What is Netflix's market cap?
Netflix has a market cap of 298.9B USD and its shares trade at 71.79 USD, with a 52-week range of 65.08 USD to 124.86 USD (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.