Fundamentals · NFLX
Valuation Summary for NFLX
AI-generated plain-English read of valuation summary for NFLX. Updated daily.
Rich multiples, expanding
moderateRich multiples (30.9x) with expanding trajectory: multiples pricing in growth acceleration; any miss compresses sharply.
What will probably happen
- Expanding multiples on an already-expensive stock implies the market expects earnings acceleration; any miss triggers sharp compression.
What to do
- If you HOLD this stock
- You're long expensive multiples that are still expanding, which implies the market is pricing in continued growth acceleration. Any disappointment compresses sharply. Hold but trim if the next 2 quarters miss.
- If you're EVALUATING this stock
- Pass unless your conviction on growth durability is high. Expanding multiples already price in the bull case: you're paying for a scenario that hasn't happened yet.
- If you trade OPTIONS
- Sell premium against shares (covered calls); IV likely elevated. Avoid long calls: multiple compression risk dominates if growth disappoints. Bear call spreads hedge the downside.
9 quarters / 3 populated multiples: directionally informative; use more data for full conviction.
Technical details
Technical analysis
- P/Book
- 13.3x
- P/Sales
- 8.8x
- EV/EBITDA
- --
- FCF yield
- --
- EV/Revenue
- --
- P/E (forward)
- --
- Dividend yield
- --
- Earnings yield
- --
- Income profile
- Growth Profile
- P/E (trailing)
- 30.9x
- Sector context
- Media
- Sector comparison
- Unknown Vs Sector
- Absolute valuation
- Richly Valued
- History (quarters)
- 9
- Multiple trajectory
- Expanding
Key levels
| Level | Value |
|---|---|
| pb ratio | 13.278 |
| pe ratio | 30.904 |
| ps ratio | 8.814 |
| n quarters | 9 |
| current price | 62.15 |
| prior year pe | 4.396 |
Caveats
- Multiples should be read alongside growth and quality metrics: a low P/E on declining earnings isn't cheap, it's a value trap warning.
- Sector context wasn't provided; absolute multiples may mislead without industry comparison.