PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Netflix's PE Ratio without NRI is 50.84. Netflix's 5-Year EBITDA growth rate is 18.80%. Therefore, Netflix's PEG Ratio for today is 2.70.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Netflix's PEG Ratio or its related term are showing as below:
NFLX'
s PEG Ratio Range Over the Past 10 Years
Min: 0.57 Med: 3.04 Max: 12.73
Current: 2.71
During the past 13 years, Netflix's highest PEG Ratio was 12.73. The lowest was 0.57. And the median was 3.04.
NFLX's PEG Ratio is ranked worse than 67.41% of 224
companies
in the Media - Diversified industry
Industry Median: 1.39
vs NFLX: 2.71
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Netflix PEG Ratio Historical Data
The historical data trend for Netflix's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Netflix Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
PEG Ratio
2.53
2.90
1.87
1.19
2.17
Netflix Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
PEG Ratio
1.19
1.60
2.17
1.88
2.17
Competitive Comparison
For the Entertainment subindustry, Netflix's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Netflix PEG Ratio Distribution
For the Media - Diversified industry and Communication Services sector, Netflix's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Netflix's PEG Ratio falls into.
Netflix PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Netflix (NAS:NFLX) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Netflix PEG Ratio Related Terms
Thank you for viewing the detailed overview of Netflix's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with almost 250 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm recently began introducing ad-supported subscription plans, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
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