NetflixLIM:NFLX -1.30%91 FCF Margin % is 41.59% as of Mar. 2026, which is 1677% above its 10-year median of 2.34. GuruFocus rates LIM:NFLX with a GF Score™ of 91/100 and a GF Value™ of $98.93 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,017 Media - Diversified companies, Netflix ranks better than 92.92% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Netflix's Free Cash Flow for the
three
months ended in Mar. 2026 was $5,094 Mil. Netflix's Revenue for the
three
months ended in Mar. 2026 was $12,250 Mil. Therefore, Netflix's FCF Margin % for the quarter that ended in Mar. 2026 was 41.59%.
The historical rank and industry rank for Netflix's FCF Margin % or its related term are showing as below:
LIM:NFLX'
s FCF Margin % Range Over the Past 10 Years
Min: -18.78 Med: 2.34 Max: 25.37
Current: 25.37
During the past 13 years, the highest FCF Margin % of Netflix was 25.37%. The lowest was -18.78%. And the median was 2.34%.
LIM:NFLX's FCF Margin % is ranked better than 92.92% of 1017
companies
in the Media - Diversified industry
Industry Median: 2.12
vs LIM:NFLX: 25.37
Netflix FCF Margin % Related Terms
Netflix FCF Margin % Historical Data
* Premium members only.
The historical data trend for Netflix's FCF Margin % 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.
LIM:NFLX vs DIS, WBD, LYV: FCF Margin % Comparison
For the Entertainment subindustry, Netflix's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Netflix's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Netflix's FCF Margin % falls into.
* 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 (LIM:NFLX) has a FCF Margin % of 41.59% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Netflix and its competitors. This is 1677% above median its historical median of 2.34. According to the industry distribution chart, Netflix ranks #72 out of 1017 companies in the Media - Diversified industry, placing it in the top 7.1%.
Is Netflix's FCF Margin % too high?
Netflix's current FCF Margin % of 41.59% is 1677% above median its 10-year median of 2.34. The Media - Diversified industry median FCF Margin % is 2.12. Netflix's value of 41.59% is 1861.8% above this industry median. Based on the distribution chart, Netflix ranks #72 out of 1017 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Netflix has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netflix's FCF Margin % compare to DIS and WBD?
According to the Media - Diversified industry distribution chart, Netflix ranks #72 out of 1017 companies for FCF Margin %. This places Netflix in the top 7% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.12. Netflix's value of 41.59% is 1861.8% above this benchmark. While the company's 10-year median is 2.34 vs. the industry median of 2.12, 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 FCF Margin % for a Media - Diversified company?
The median FCF Margin % among Media - Diversified companies is 2.12, based on 1,017 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Netflix's current FCF Margin % of 41.59% is 1861.8% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Netflix and its competitors. For the Media - Diversified industry, the median FCF Margin % is 2.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netflix's current FCF Margin % is 41.59%, which is 1677% above median its own 10-year median of 2.34. 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 (LIM:NFLX) is currently considered Modestly Undervalued. The stock's GF Value™ is $98.93, compared to a current price of $72.20 — trading 27% below its estimated fair value. The current FCF Margin % is 41.59%, which is 1677% above median its 10-year median of 2.34 and 1861.8% above the Media - Diversified industry median of 2.12. Netflix's overall GF Score™ is 91/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Netflix (LIM:NFLX), the current FCF Margin % is 41.59% as of Mar. 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 (LIM:NFLX) Overvalued in 2026?
Based on GuruFocus' analysis, Netflix stock appears to be undervalued.
The current stock price of $72.20 is trading 27% below its estimated GF Value™ of $98.93.
GuruFocus considers Netflix to be Modestly Undervalued.
Key valuation signals for LIM:NFLX:
FCF Margin %: 41.59% (1677% above median its 10-year median of 2.34)
GF Value™: $98.93 vs. price of $72.20 (27% below fair value)
Industry Position: 1861.8% above the Media - Diversified median (#72 of 1017)
No single metric tells the full story. See the LIM: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.
91GF Score
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