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GuruFocus has detected 5 Warning Signs with Netflix Inc \$NFLX.
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Netflix Inc (NAS:NFLX)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
(As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Netflix Inc's P/E (NRI) Ratio is 374.08. Netflix Inc's 5-year average EBITDA growth rate is -12.70%. Therefore, Netflix Inc's PEG for today is .

During the past 13 years, Netflix Inc's highest PEG was 146.59. The lowest was 0.00. And the median was 1.47.

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.

Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Netflix Inc's PEG for today is calculated as

 PEG = P/E (NRI) Ratio / EBITDA Growth Rate (5-year average) = 374.081081081 / -12.70 =

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG 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.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Netflix Inc Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 peg 0.60 0.51 0.74 1.74 0.47 6.10 3.98 1.71 128.06 0.00

Netflix Inc Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 peg 2.50 1.71 2.69 6.73 17.15 128.06 0.00 0.00 0.00 0.00
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