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NetflixXSWX:NFLX 95 Earnings Yield (Joel Greenblatt) % is 5.73% as of Jun. 2026, which is 152% above its 10-year median of 2.27. GuruFocus rates XSWX:NFLX with a GF Score™ of 95/100 and a GF Value™ of CHF81.46 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,006 Media - Diversified companies, Netflix ranks better than 60.64% on this metric.
Netflix's Enterprise Value for the quarter that ended in Jun. 2026 was CHF250,480 Mil.
Netflix's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was CHF13,761 Mil. Netflix's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 5.73%.
The historical rank and industry rank for Netflix's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
XSWX:NFLX'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.54 Med: 2.27 Max: 7.51
Current: 5.82
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Netflix was 7.51%. The lowest was 0.54%. And the median was 2.27%.
XSWX:NFLX's Earnings Yield (Joel Greenblatt) % is ranked better than 60.64% of 1006
companies
in the Media - Diversified industry
Industry Median: 2.725
vs XSWX:NFLX: 5.82
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Netflix's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 16.68%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Netflix Earnings Yield (Joel Greenblatt) % Related Terms
Netflix Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Netflix's Earnings Yield (Joel Greenblatt) % 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.
For the Entertainment subindustry, Netflix's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Netflix's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Netflix's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Netflixs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Netflix's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF13,761 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 5.73% mean?
Netflix (XSWX:NFLX) has a Earnings Yield (Joel Greenblatt) % of 5.73% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Netflix and its competitors. This is 152% above median its historical median of 2.27. Over the past decade, Netflix's Earnings Yield (Joel Greenblatt) % has ranged from 0.54 to 7.51. According to the industry distribution chart, Netflix ranks #396 out of 1006 companies in the Media - Diversified industry, placing it in the top 39.4%.
Is Netflix's Earnings Yield (Joel Greenblatt) % too high?
Netflix's current Earnings Yield (Joel Greenblatt) % of 5.73% is 152% above median its 10-year median of 2.27. Over the past 10 years, this metric has ranged from a low of 0.54 to a high of 7.51. The Media - Diversified industry median Earnings Yield (Joel Greenblatt) % is 2.73. Netflix's value of 5.73% is 110.3% above this industry median. Based on the distribution chart, Netflix ranks #396 out of 1006 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Netflix has a GF Score™ of 95/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netflix's Earnings Yield (Joel Greenblatt) % compare to DIS and WBD?
According to the Media - Diversified industry distribution chart, Netflix ranks #396 out of 1006 companies for Earnings Yield (Joel Greenblatt) %. This puts Netflix in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 2.73. Netflix's value of 5.73% is 110.3% above this benchmark. Historically, Netflix's own Earnings Yield (Joel Greenblatt) % has ranged from 0.54 to 7.51 over the past decade. While the company's 10-year median is 2.27 vs. the industry median of 2.73, Netflix has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Media - Diversified company?
The median Earnings Yield (Joel Greenblatt) % among Media - Diversified companies is 2.73, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Netflix's current Earnings Yield (Joel Greenblatt) % of 5.73% is 110.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Netflix and its competitors. For the Media - Diversified industry, the median Earnings Yield (Joel Greenblatt) % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netflix's current Earnings Yield (Joel Greenblatt) % is 5.73%, which is 152% above median its own 10-year median of 2.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netflix stock overvalued right now?
Based on GuruFocus' analysis, Netflix (XSWX:NFLX) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF81.46, compared to a current price of CHF56.25 — trading 30.9% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 5.73%, which is 152% above median its 10-year median of 2.27 and 110.3% above the Media - Diversified industry median of 2.73. Netflix's overall GF Score™ is 95/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Netflix (XSWX:NFLX), the current Earnings Yield (Joel Greenblatt) % is 5.73% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Netflix (XSWX:NFLX) Overvalued in 2026?
Based on GuruFocus' analysis, Netflix stock appears to be undervalued.
The current stock price of CHF56.25 is trading 30.9% below its estimated GF Value™ of CHF81.46.
GuruFocus considers Netflix to be Significantly Undervalued.
Key valuation signals for XSWX:NFLX:
Earnings Yield (Joel Greenblatt) %: 5.73% (152% above median its 10-year median of 2.27)
GF Value™: CHF81.46 vs. price of CHF56.25 (30.9% below fair value)
Industry Position: 110.3% above the Media - Diversified median (#396 of 1006)
No single metric tells the full story. See the XSWX:NFLX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
95GF Score
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