GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Netflix Inc (NAS:NFLX) » Definitions » E10

Netflix (NFLX) E10 : $8.21 (As of Mar. 2025)


View and export this data going back to 2002. Start your Free Trial

What is Netflix E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Netflix's adjusted earnings per share data for the three months ended in Mar. 2025 was $6.610. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $8.21 for the trailing ten years ended in Mar. 2025.

During the past 12 months, Netflix's average E10 Growth Rate was 36.80% per year. During the past 3 years, the average E10 Growth Rate was 37.10% per year. During the past 5 years, the average E10 Growth Rate was 46.40% per year. During the past 10 years, the average E10 Growth Rate was 43.30% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Netflix was 58.90% per year. The lowest was 15.00% per year. And the median was 37.10% per year.

As of today (2025-07-06), Netflix's current stock price is $1297.18. Netflix's E10 for the quarter that ended in Mar. 2025 was $8.21. Netflix's Shiller PE Ratio of today is 158.00.

During the past 13 years, the highest Shiller PE Ratio of Netflix was 775.64. The lowest was 47.86. And the median was 299.77.


Netflix E10 Historical Data

The historical data trend for Netflix's E10 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 E10 Chart

Netflix Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.69 2.89 4.08 5.39 7.45

Netflix Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.50 7.04 7.45 8.21

Competitive Comparison of Netflix's E10

For the Entertainment subindustry, Netflix's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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's Shiller PE Ratio Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Netflix's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Netflix's Shiller PE Ratio falls into.


;
;

Netflix E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Netflix's adjusted earnings per share data for the three months ended in Mar. 2025 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=6.61/134.9266*134.9266
=6.610

Current CPI (Mar. 2025) = 134.9266.

Netflix Quarterly Data

per share eps CPI Adj_EPS
201506 0.060 100.684 0.080
201509 0.070 100.392 0.094
201512 0.100 99.792 0.135
201603 0.060 100.470 0.081
201606 0.090 101.688 0.119
201609 0.120 101.861 0.159
201612 0.150 101.863 0.199
201703 0.400 102.862 0.525
201706 0.150 103.349 0.196
201709 0.290 104.136 0.376
201712 0.410 104.011 0.532
201803 0.640 105.290 0.820
201806 0.850 106.317 1.079
201809 0.890 106.507 1.127
201812 0.300 105.998 0.382
201903 0.760 107.251 0.956
201906 0.600 108.070 0.749
201909 1.470 108.329 1.831
201912 1.300 108.420 1.618
202003 1.570 108.902 1.945
202006 1.590 108.767 1.972
202009 1.740 109.815 2.138
202012 1.190 109.897 1.461
202103 3.750 111.754 4.528
202106 2.970 114.631 3.496
202109 3.190 115.734 3.719
202112 1.330 117.630 1.526
202203 3.530 121.301 3.927
202206 3.200 125.017 3.454
202209 3.100 125.227 3.340
202212 0.120 125.222 0.129
202303 2.880 127.348 3.051
202306 3.290 128.729 3.448
202309 3.730 129.860 3.876
202312 2.110 129.419 2.200
202403 5.280 131.776 5.406
202406 4.880 132.554 4.967
202409 5.400 133.029 5.477
202412 4.270 133.157 4.327
202503 6.610 134.927 6.610

Add all the adjusted EPS together and divide 10 will get our e10.


Netflix  (NAS:NFLX) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Netflix's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=1297.18/8.21
=158.00

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Netflix was 775.64. The lowest was 47.86. And the median was 299.77.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Netflix E10 Related Terms

Thank you for viewing the detailed overview of Netflix's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Netflix Business Description

Address
121 Albright Way, Los Gatos, CA, USA, 95032
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 more than 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
Executives
Jeffrey William Karbowski officer: Chief Accounting Officer 121 ALBRIGHT WAY, LOS GATOS CA 95032
Leslie J Kilgore director 121 ALBRIGHT WAY, LOS GATOS CA 95032
Strive Masiyiwa director 265 FRANKLIN STREET, BOSTON MA 02110
Bradford L Smith director MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Ann Mather director
Theodore A Sarandos officer: Chief Content Officer C/O NETFLIX, INC, 121 ALBRIGHT WAY, LOS GATOS CA 95032
Spencer Adam Neumann officer: Chief Financial Officer SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Gregory K Peters officer: Intl. Development Officer C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
David A Hyman officer: General Counsel C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
Reed Hastings director, 10 percent owner, officer: CEO, other: CEO 121 ALBRIGHT WAY, LOS GATOS CA 95032
Mathias Dopfner director C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Richard N Barton director C/O IAC, 152 WEST 57TH STREET, NEW YORK NY 10019
Anne M Sweeney director C/O 121 ALBRIGHT WAY, LOS GATOS CA 95032
Timothy M Haley director 3000 SAND HILL ROAD, 2-290, MENLO PARK CA 94025