NetflixNFLX -1.29%95 Interest Coverage is 15.10 as of Mar. 2026, which is 149% above its 10-year median of 6.07. GuruFocus rates NFLX with a GF Score™ of 95/100 and a GF Value™ of $98.44 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 609 Media - Diversified companies, Netflix ranks better than 56.49% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Netflix's
Operating Income
for the
three
months ended in Mar. 2026 was $3,957 Mil. Netflix's Interest Expense for the
three
months ended in Mar. 2026 was $-262 Mil.
Netflix's interest coverage for the quarter that ended in Mar. 2026 was 15.10.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Netflix's Interest Coverage or its related term are showing as below:
NFLX'
s Interest Coverage Range Over the Past 10 Years
Min: 2.37 Med: 6.07 Max: 17.16
Current: 16.31
NFLX's Interest Coverage is ranked better than 56.49% of 609
companies
in the Media - Diversified industry
Industry Median: 11.88
vs NFLX: 16.31
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Netflix Interest Coverage Related Terms
Netflix Interest Coverage Historical Data
* Premium members only.
The historical data trend for Netflix's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
NFLX vs DIS, WBD, LYV: Interest Coverage Comparison
For the Entertainment subindustry, Netflix's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Netflix's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Netflix's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (NFLX) has a Interest Coverage of 15.10 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Netflix and its competitors. This is 149% above median its historical median of 6.07. Over the past decade, Netflix's Interest Coverage has ranged from 2.37 to 17.16. According to the industry distribution chart, Netflix ranks #265 out of 609 companies in the Media - Diversified industry, placing it in the top 43.5%.
Is Netflix's Interest Coverage too high?
Netflix's current Interest Coverage of 15.10 is 149% above median its 10-year median of 6.07. Over the past 10 years, this metric has ranged from a low of 2.37 to a high of 17.16. The Media - Diversified industry median Interest Coverage is 11.88. Netflix's value of 15.10 is 27.1% above this industry median. Based on the distribution chart, Netflix ranks #265 out of 609 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Netflix has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netflix's Interest Coverage compare to DIS and WBD?
According to the Media - Diversified industry distribution chart, Netflix ranks #265 out of 609 companies for Interest Coverage. This puts Netflix in the upper half of its industry. The industry median Interest Coverage is 11.88. Netflix's value of 15.10 is 27.1% above this benchmark. Historically, Netflix's own Interest Coverage has ranged from 2.37 to 17.16 over the past decade. While the company's 10-year median is 6.07 vs. the industry median of 11.88, 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 Interest Coverage for a Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.88, based on 609 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Netflix's current Interest Coverage of 15.10 is 27.1% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Netflix and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netflix's current Interest Coverage is 15.10, which is 149% above median its own 10-year median of 6.07. 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 (NFLX) is currently considered Modestly Undervalued. The stock's GF Value™ is $98.44, compared to a current price of $70.90 — trading 28% below its estimated fair value. The current Interest Coverage is 15.10, which is 149% above median its 10-year median of 6.07 and 27.1% above the Media - Diversified industry median of 11.88. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Netflix (NFLX), the current Interest Coverage is 15.10 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 (NFLX) Overvalued in 2026?
Based on GuruFocus' analysis, Netflix stock appears to be undervalued.
The current stock price of $70.90 is trading 28% below its estimated GF Value™ of $98.44.
GuruFocus considers Netflix to be Modestly Undervalued.
Key valuation signals for NFLX:
Interest Coverage: 15.10 (149% above median its 10-year median of 6.07)
GF Value™: $98.44 vs. price of $70.90 (28% below fair value)
Industry Position: 27.1% above the Media - Diversified median (#265 of 609)
No single metric tells the full story. See the 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
Get the complete analysis for NFLX
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NFLX has been successfully added to your 
