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Netflix PE Ratio

: 16.24 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-05-24), Netflix's share price is $178.98. Netflix's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $11.02. Therefore, Netflix's PE Ratio for today is 16.24.

Good Sign:

Netflix Inc stock PE Ratio (=17.10) is close to 10-year low of 16.42


The historical rank and industry rank for Netflix's PE Ratio or its related term are showing as below:

NFLX' s PE Ratio Range Over the Past 10 Years
Min: 14.5   Med: 126.92   Max: 629.53
Current: 16.16


During the past 13 years, the highest PE Ratio of Netflix was 629.53. The lowest was 14.50. And the median was 126.92.


NFLX's PE Ratio is ranked worse than
50.49% of 614 companies
in the Media - Diversified industry
Industry Median: 17.07 vs NFLX: 16.16

Netflix's Earnings per Share (Diluted) for the three months ended in Mar. 2022 was $3.53. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $11.02.

As of today (2022-05-24), Netflix's share price is $178.98. Netflix's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $11.02. Therefore, Netflix's PE Ratio without NRI for today is 16.24.

During the past 13 years, Netflix's highest PE Ratio without NRI was 629.53. The lowest was 14.50. And the median was 126.92.

Netflix's EPS without NRI for the three months ended in Mar. 2022 was $3.53. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $11.02.

During the past 12 months, Netflix's average EPS without NRI Growth Rate was 33.30% per year. During the past 3 years, the average EPS without NRI Growth Rate was 61.30% per year. During the past 5 years, the average EPS without NRI Growth Rate was 84.80% per year. During the past 10 years, the average EPS without NRI Growth Rate was 53.90% per year.

During the past 13 years, Netflix's highest 3-Year average EPS without NRI Growth Rate was 143.40% per year. The lowest was -47.50% per year. And the median was 44.20% per year.

Netflix's EPS (Basic) for the three months ended in Mar. 2022 was $3.60. Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2022 was $11.29.


Netflix PE Ratio Historical Data

The historical data trend for Netflix's PE Ratio 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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 153.57 99.87 78.35 88.94 53.60

Netflix Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only 63.08 54.74 54.99 53.60 33.99

Competitive Comparison

For the Entertainment subindustry, Netflix's PE Ratio, along with its competitors' market caps and 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 PE Ratio Distribution

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

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



Netflix PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Netflix's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=178.98/11.020
=16.24

Netflix's Share Price of today is $178.98.
Netflix's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $11.02.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Netflix  (NAS:NFLX) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Netflix PE Ratio Related Terms

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


Netflix Business Description

Netflix logo
Industry
Address
100 Winchester Circle, Los Gatos, CA, USA, 95032
Netflix's primary business is a streaming video on demand service now available in almost every country worldwide except China. Netflix delivers original and third-party digital video content to PCs, Internet-connected TVs, and consumer electronic devices, including tablets, video game consoles, Apple TV, Roku, and Chromecast. In 2011, Netflix introduced DVD-only plans and separated the combined streaming and DVD plans, making it necessary for subscribers who want both to have separate plans.
Executives
Hastings Reed director, officer: Co-CEO 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Neumann Spencer Adam officer: Chief Financial Officer SIERRA INCOME CORPORATION 375 PARK AVE., SUITE 3304 NEW YORK NY 10152
Whetstone Rachel officer: Chief Communications Officer 185 TUSCALOOSA AVENUE ATHERTON CA 94027
Rice Susan E director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Belmer Rodolphe director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Neal Jessica officer: Chief Talent Officer 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Sweeney Anne M director C/O 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Peters Gregory K officer: COO and Chief Product Officer C/O NETFLIX, INC. 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Hyman David A officer: Chief Legal Officer C/O NETFLIX, INC. 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Sarandos Theodore A director, officer: Co-CEO & Chief Content Officer C/O NETFLIX, INC 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Dopfner Mathias director C/O TIME WARNER INC. ONE TIME WARNER CENTER NEW YORK NY 10019
Kilgore Leslie J director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Haley Timothy M director 3000 SAND HILL ROAD, 2-290 MENLO PARK CA 94025
Barton Richard N director C/O IAC 152 WEST 57TH STREET NEW YORK NY 10019
Smith Bradford L director MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052-6399

Netflix Headlines

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