NFLX Analysis — TradeApes

NETFLIX INC (NFLX)

Communication Services Entertainment

$82.18 close · Jun 06, 2026

Below 50 & 200 SMA

52W -34.9% from High

Methodology Breakdown

Single-method rescue — one voting method produced a value with peer-rank corroboration. The verdict displays the dollar, but cross-method triangulation didn't reach a consensus.

Method	Value	Role
Peer Multiples	$23.93	REFERENCE
Earnings Power Value	$2.04	REFERENCE
Book Value Anchor	$14.50	REFERENCE
Earnings Anchor	$23.67	REFERENCE
Cash Floor	$2.00	REFERENCE
NAV Anchor	$14.50	REFERENCE

Verdict basis:


              multiples_only

📈

Undervalued -20.2%

Market cap (352.00B) is 20.2% below the bear-case DCF fair value (441.17B)

Jun 05

Health Score

Out of 100

Healthy

Pillar Scores

Financial Strength 80

Operating Trend 60

Valuation 48

Capital Allocation 55

Risk Management 70

Positives

↑ Low leverage — net debt/EBITDA below 1× +2.5

↑ Strong interest coverage — EBIT covers interest 10×+ +2.5

↑ Free cash flow positive — business generates real spendable cash +2.5

Concerns

↓ High P/E — 25–45×, growth premium already priced in -2.5

↓ Altman Z-Score in grey zone — uncertain financial stability -1.0

Signal contribution: +12.8 from strengths -3.5 from concerns

Health Score Trend 7 snapshots

Cross-Check: Greenblatt Magic Formula

✓ Aligned

Earnings Yield

3.2%

Rank 845 / 1256

Return on Capital

282.2%

Rank 108 / 1256

Combined Rank

66th pctl

1256 companies ranked

Based on Joel Greenblatt's Magic Formula methodology. Not investment advice.

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	46.89B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	—
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	13.94B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	13.37B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	11.89B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	14.29B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	14.36B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	12.26B

Valuation

Market Cap	353.25B
Enterprise Value	357.73B
EV / Revenue	7.6x
EV / EBITDA	25.0x
P/E (TTM)	26.4x
Forward P/E	—
PEG	—
P/FCF	29.7x
FCF Yield	3.4%

EV/EBITDA vs history — 32% percentile (historically cheap)

CheapMidExpensive

EV/Sales vs history — 32% percentile (historically cheap)

CheapMidExpensive

P/Book vs history — 32% percentile (historically cheap)

CheapMidExpensive

Relative Valuation

Using relative multiples

EV / Revenue

7.6x

Book Value / Share

$7.24

Price / Book

11.3x

P/E (TTM)

26.4x

Price / Sales

7.5x

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	—
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	30.5%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	28.5%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	25.4%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	16.7%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	44.3%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	6 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	2.96

Community Sentiment

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Quarterly Financials

Metric	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '24	Q2 '24	Q1 '24	Q4 '23	Q3 '24	Q2 '24
Revenue ?Total quarterly sales from primary business operations.	12.25B	12.05B	11.51B	11.08B	10.54B	10.25B	9.82B	9.56B	9.37B	8.83B	8.54B	8.19B
Gross Profit ?Quarterly revenue minus cost of goods sold.	—	—	—	—	—	—	—	—	—	—	—	—
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	3.96B	2.96B	3.25B	3.77B	3.35B	2.27B	2.91B	2.60B	2.63B	1.50B	1.92B	1.83B
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	5.28B	2.42B	2.55B	3.13B	2.89B	1.87B	2.36B	2.15B	2.33B	937.8M	1.68B	1.49B
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	5.09B	1.87B	2.66B	2.27B	2.66B	1.38B	2.19B	1.21B	2.14B	1.58B	1.89B	1.34B

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.