Netflix Price to Earning

NFLX
 Stock
  

USD 241.15  4.54  1.85%   

Netflix fundamentals help investors to digest information that contributes to Netflix's financial success or failures. It also enables traders to predict the movement of Netflix Stock. The fundamental analysis module provides a way to measure Netflix's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Netflix stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Price to Earnings Ratio is likely to rise to 106.86 in 2022. Earnings Before Interest Taxes and Depreciation Amortization EBITDA is likely to rise to about 20.1 B in 2022.

Netflix Price to Earning Analysis

Netflix's Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
 2020 2021 2022 (projected)
Accounts Payable656.18 M837.48 M903.6 M
Receivables610.82 M804.32 M885.37 M
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
More About Price to Earning | All Equity Analysis

Current Netflix Price to Earning

    
  20.88 X  
Most of Netflix's fundamental indicators, such as Price to Earning, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Netflix is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Netflix Price to Earning Historical Pattern

Today, most investors in Netflix Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Netflix's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's price to earning growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Netflix price to earning as a starting point in their analysis.
   Netflix Price to Earning   
Share
       Timeline  
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Compare to competition

Netflix Accumulated Retained Earnings Deficit

Accumulated Retained Earnings Deficit

9.4 Billion

Netflix Accumulated Retained Earnings Deficit are fairly stable at the moment as compared to the past year. Netflix reported Accumulated Retained Earnings Deficit of 8.71 Billion in 2021
Based on the latest financial disclosure, the price to earning indicator of Netflix is roughly 20.88 times. This is 75.57% lower than that of the Communication Services sector and significantly higher than that of the Entertainment industry. The price to earning for all United States stocks is 27.3% higher than that of the company.

Netflix Price to Earning Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Netflix's direct or indirect competition against its Price to Earning to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Netflix could also be used in its relative valuation, which is a method of valuing Netflix by comparing valuation metrics of similar companies.
Netflix is currently under evaluation in price to earning category among related companies.

Netflix Current Valuation Drivers

We derive many important indicators used in calculating different scores of Netflix from analyzing Netflix's financial statements. These drivers represent accounts that assess Netflix's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Netflix's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee101.62 K170.6 K217.08 K292.96 K452.76 K488.51 K
Revenue Per Employee2.13 M2.22 M2.34 M2.65 M2.63 M2.19 M
Average Assets16.71 B23.04 B30.58 B37.53 B43.16 B46.57 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA7.17 B9.26 B11.92 B15.51 B18.63 B20.1 B
Earnings Before Interest Taxes and Depreciation Amortization USD6.99 B9.26 B12.01 B14.89 B17.12 B18.47 B
Earnings before Tax485.32 M1.23 B2.06 B3.2 B3.68 B3.97 B
Average Equity3.25 B4.69 B6.56 B9.79 B11.25 B12.14 B
Enterprise Value86.21 B121.99 B149.8 B246.55 B283.53 B305.91 B
Free Cash Flow(1.96 B)(2.85 B)(3.14 B)1.93 B1.74 B1.87 B
Invested Capital2.54 B5.95 B12.36 B14.19 B16.32 B17.61 B
Invested Capital Average1.03 B3.99 B9.03 B12.99 B14.94 B16.12 B
Market Capitalization83.07 B116.72 B141.8 B238.89 B274.73 B296.41 B
Tangible Asset Value4.33 B5.87 B9.47 B13.9 B15.98 B17.24 B
Working Capital2.2 B3.21 B(677.19 M)1.96 B2.25 B1.88 B

Netflix ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Netflix's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Netflix's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Netflix Fundamentals

About Netflix Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Netflix's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Netflix using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Netflix based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Price to Earnings Ratio 77.74  106.86 
Earnings Before Interest Taxes and Depreciation Amortization EBITDA18.6 B20.1 B
Earnings before Tax3.7 BB
It offers TV series, documentaries, feature films, and mobile games across various genres and languages. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California. Netflix operates under Entertainment classification in the United States and is traded on NASDAQ Exchange. It employs 11300 people.

Netflix Investors Sentiment

The influence of Netflix's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Netflix. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Netflix's public news can be used to forecast risks associated with investment in Netflix. The trend in average sentiment can be used to explain how an investor holding Netflix can time the market purely based on public headlines and social activities around Netflix. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Netflix's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Netflix's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Netflix's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Netflix.

Netflix Implied Volatility

    
  50.25  
Netflix's implied volatility exposes the market's sentiment of Netflix stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Netflix's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Netflix stock will not fluctuate a lot when Netflix's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Netflix in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Netflix's short interest history, or implied volatility extrapolated from Netflix options trading.

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Netflix using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Additionally, see Netflix Piotroski F Score and Netflix Altman Z Score analysis. Note that the Netflix information on this page should be used as a complementary analysis to other Netflix's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Complementary Tools for Netflix Stock analysis

When running Netflix price analysis, check to measure Netflix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Netflix is operating at the current time. Most of Netflix's value examination focuses on studying past and present price action to predict the probability of Netflix's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Netflix's price. Additionally, you may evaluate how the addition of Netflix to your portfolios can decrease your overall portfolio volatility.
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Is Netflix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Netflix. If investors know Netflix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Netflix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.077
Market Capitalization
109.3 B
Quarterly Revenue Growth YOY
0.086
Return On Assets
0.085
Return On Equity
0.31
The market value of Netflix is measured differently than its book value, which is the value of Netflix that is recorded on the company's balance sheet. Investors also form their own opinion of Netflix's value that differs from its market value or its book value, called intrinsic value, which is Netflix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Netflix's market value can be influenced by many factors that don't directly affect Netflix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Netflix's value and its price as these two are different measures arrived at by different means. Investors typically determine Netflix value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Netflix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.