Netflix (XSWX:NFLX) EV-to-EBIT: 17.38 (As of Jul. 18, 2026) — 61% Below Median

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XSWX:NFLX Netflix Inc XSWX:NFLX
94 GF Score
Price CHF54.92
GF Value CHF79.31
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Netflix EV-to-EBIT?

Netflix XSWX:NFLX -8.01% 94 EV-to-EBIT is 17.38 as of Jul. 18, 2026, which is 61% below its 10-year median of 44.31. GuruFocus rates XSWX:NFLX with a GF Score™ of 94/100 and a GF Value™ of CHF79.31 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 640 Media - Diversified companies, Netflix ranks worse than 70.94% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Netflix's Enterprise Value is CHF239,146 Mil. Netflix's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was CHF13,761 Mil. Therefore, Netflix's EV-to-EBIT for today is 17.38.

The historical rank and industry rank for Netflix's EV-to-EBIT or its related term are showing as below:

XSWX:NFLX' s EV-to-EBIT Range Over the Past 10 Years
Min: 13.32   Med: 44.31   Max: 183.88
Current: 17.04

During the past 13 years, the highest EV-to-EBIT of Netflix was 183.88. The lowest was 13.32. And the median was 44.31.

XSWX:NFLX's EV-to-EBIT is ranked worse than
70.94% of 640 companies
in the Media - Diversified industry
Industry Median: 10.545 vs XSWX:NFLX: 17.04

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Netflix's Enterprise Value for the quarter that ended in Jun. 2026 was CHF253,252 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 5.43%.


Netflix  (XSWX:NFLX) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Netflix's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Jun. 2026 ) =EBIT / Enterprise Value (Q: Jun. 2026 )
=13760.655/253252.35884
=5.43 %

Netflix's Enterprise Value for the quarter that ended in Jun. 2026 was CHF253,252 Mil.
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.

* 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.


Netflix EV-to-EBIT Related Terms


Netflix EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Netflix's EV-to-EBIT 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.

Netflix EV-to-EBIT Chart

Netflix Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.91 23.39 31.36 36.25 29.73

Netflix Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EV-to-EBIT 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 46.20 40.02 29.73 24.08 17.64

XSWX:NFLX vs DIS, WBD, LYV: EV-to-EBIT Comparison

For the Entertainment subindustry, Netflix's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Netflix's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Netflix's EV-to-EBIT falls into.


XSWX:NFLX
94GF Score
Netflix Inc XSWX:NFLX
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Netflix EV-to-EBIT Calculation

Netflix's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=239146.286/13760.655
=17.38

Netflix's current Enterprise Value is CHF239,146 Mil.
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.

* 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.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 17.38 mean?
Netflix (XSWX:NFLX) has a EV-to-EBIT of 17.38 as of Jul. 18, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Netflix and its competitors. This is 61% below median its historical median of 44.31. Over the past decade, Netflix's EV-to-EBIT has ranged from 13.32 to 183.88. According to the industry distribution chart, Netflix ranks #454 out of 640 companies in the Media - Diversified industry, placing it in the top 70.9%.
Is Netflix's EV-to-EBIT too high?
Netflix's current EV-to-EBIT of 17.38 is 61% below median its 10-year median of 44.31. Over the past 10 years, this metric has ranged from a low of 13.32 to a high of 183.88. The Media - Diversified industry median EV-to-EBIT is 10.55. Netflix's value of 17.38 is 64.8% above this industry median. Based on the distribution chart, Netflix ranks #454 out of 640 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Netflix has a GF Score™ of 94/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netflix's EV-to-EBIT compare to DIS and WBD?
According to the Media - Diversified industry distribution chart, Netflix ranks #454 out of 640 companies for EV-to-EBIT. This places Netflix in the lower half of its industry. The industry median EV-to-EBIT is 10.55. Netflix's value of 17.38 is 64.8% above this benchmark. Historically, Netflix's own EV-to-EBIT has ranged from 13.32 to 183.88 over the past decade. While the company's 10-year median is 44.31 vs. the industry median of 10.55, 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 EV-to-EBIT for a Media - Diversified company?
The median EV-to-EBIT among Media - Diversified companies is 10.55, based on 640 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Netflix's current EV-to-EBIT of 17.38 is 64.8% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Netflix and its competitors. For the Media - Diversified industry, the median EV-to-EBIT is 10.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netflix's current EV-to-EBIT is 17.38, which is 61% below median its own 10-year median of 44.31. 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 CHF79.31, compared to a current price of CHF54.92 — trading 30.8% below its estimated fair value. The current EV-to-EBIT is 17.38, which is 61% below median its 10-year median of 44.31 and 64.8% above the Media - Diversified industry median of 10.55. Netflix's overall GF Score™ is 94/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Netflix (XSWX:NFLX), the current EV-to-EBIT is 17.38 as of Jul. 18, 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 CHF54.92 is trading 30.8% below its estimated GF Value™ of CHF79.31. GuruFocus considers Netflix to be Significantly Undervalued.

Key valuation signals for XSWX:NFLX:

  • EV-to-EBIT: 17.38 (61% below median its 10-year median of 44.31)
  • GF Value™: CHF79.31 vs. price of CHF54.92 (30.8% below fair value)
  • GF Score™: 94/100 with 1 warning sign
  • Industry Position: 64.8% above the Media - Diversified median (#454 of 640)

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 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.
94GF Score

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EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF54.92
Price
CHF79.31
GF Value