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Netflix, Inc.

NFLX

Communication Services

$96.88

+0.66%

Price History (1 Year)

Market Cap

$410.5B

P/E Ratio

38.3x

P/B Ratio

14.90x

EV/EBITDA

13.3x

ROE

41.3%

FCF Yield

2.4%

Div. Yield

DCF Value

$24.12

Overvalued vs DCF

QuarterRevenueNet IncomeEPS
2025-12-31$12.05B$2.42B$0.57
2025-09-30$11.51B$2.55B$0.60
2025-06-30$11.08B$3.13B$0.74
2025-03-31$10.54B$2.89B$0.68

AI Analysis

NFLX: Ad Revenue Doubles as Margin Recovery Begins

  • Netflix trades at $91.52 with a 36x P/E, 32% below its 52-week high, pricing in significant doubt about the margin trajectory ahead of April 16 earnings.
  • Management targets 31.5% operating margin for FY2026, a 700-basis-point recovery from Q4 2025's 24.5% trough, with the ad tier projected to double to $3B as the primary margin lever.
  • Free cash flow hit $9.46B in 2025, up 37% year-over-year, funding $9.13B in buybacks that retire roughly 2.3% of shares annually.
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Communication Services Peers

Data provided by Financial Modeling Prep. AI analysis generated by Claude. This is not financial advice. Past performance does not guarantee future results. Always do your own research before making investment decisions.