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NetflixXSWX:NFLX 95 Forward Rate of Return (Yacktman) % is 16.68% as of Jun. 2026, which is 13% below its 10-year median of 19.08. GuruFocus rates XSWX:NFLX with a GF Score™ of 95/100 and a GF Value™ of CHF83.52 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 632 Media - Diversified companies, Netflix ranks better than 66.3% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Netflix's forward rate of return for was 16.68%.
The historical rank and industry rank for Netflix's Forward Rate of Return (Yacktman) % or its related term are showing as below:
XSWX:NFLX'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 14.32 Med: 19.08 Max: 20.43
Current: 16.61
During the past 13 years, Netflix's highest Forward Rate of Return was 20.43. The lowest was 14.32. And the median was 19.08.
XSWX:NFLX's Forward Rate of Return (Yacktman) % is ranked better than 66.3% of 632
companies
in the Media - Diversified industry
Industry Median: 6.785
vs XSWX:NFLX: 16.61
Unlike the Earnings Yield %, 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.
Netflix (XSWX:NFLX) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, 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.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Netflix Forward Rate of Return (Yacktman) % Related Terms
Netflix Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Netflix's Forward Rate of Return (Yacktman) % 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.
XSWX:NFLX vs DIS, WBD, LYV: Forward Rate of Return (Yacktman) % Comparison
For the Entertainment subindustry, Netflix's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Netflix's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Netflix's Forward Rate of Return (Yacktman) % falls into.
Netflix Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* 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.
What does a Forward Rate of Return (Yacktman) % of 16.68% mean?
Netflix (XSWX:NFLX) has a Forward Rate of Return (Yacktman) % of 16.68% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Netflix and its competitors. This is 13% below median its historical median of 19.08. Over the past decade, Netflix's Forward Rate of Return (Yacktman) % has ranged from 14.32 to 20.43. According to the industry distribution chart, Netflix ranks #213 out of 632 companies in the Media - Diversified industry, placing it in the top 33.7%.
Is Netflix's Forward Rate of Return (Yacktman) % too high?
Netflix's current Forward Rate of Return (Yacktman) % of 16.68% is 13% below median its 10-year median of 19.08. Over the past 10 years, this metric has ranged from a low of 14.32 to a high of 20.43. The Media - Diversified industry median Forward Rate of Return (Yacktman) % is 6.79. Netflix's value of 16.68% is 145.8% above this industry median. Based on the distribution chart, Netflix ranks #213 out of 632 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 Forward Rate of Return (Yacktman) % compare to DIS and WBD?
According to the Media - Diversified industry distribution chart, Netflix ranks #213 out of 632 companies for Forward Rate of Return (Yacktman) %. This puts Netflix in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 6.79. Netflix's value of 16.68% is 145.8% above this benchmark. Historically, Netflix's own Forward Rate of Return (Yacktman) % has ranged from 14.32 to 20.43 over the past decade. While the company's 10-year median is 19.08 vs. the industry median of 6.79, 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 Forward Rate of Return (Yacktman) % for a Media - Diversified company?
The median Forward Rate of Return (Yacktman) % among Media - Diversified companies is 6.79, based on 632 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Netflix's current Forward Rate of Return (Yacktman) % of 16.68% is 145.8% 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 Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Netflix and its competitors. For the Media - Diversified industry, the median Forward Rate of Return (Yacktman) % is 6.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netflix's current Forward Rate of Return (Yacktman) % is 16.68%, which is 13% below median its own 10-year median of 19.08. 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 Modestly Undervalued. The stock's GF Value™ is CHF83.52, compared to a current price of CHF59.62 — trading 28.6% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 16.68%, which is 13% below median its 10-year median of 19.08 and 145.8% above the Media - Diversified industry median of 6.79. 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 Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Netflix (XSWX:NFLX), the current Forward Rate of Return (Yacktman) % is 16.68% 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 CHF59.62 is trading 28.6% below its estimated GF Value™ of CHF83.52.
GuruFocus considers Netflix to be Modestly Undervalued.
Key valuation signals for XSWX:NFLX:
Forward Rate of Return (Yacktman) %: 16.68% (13% below median its 10-year median of 19.08)
GF Value™: CHF83.52 vs. price of CHF59.62 (28.6% below fair value)
Industry Position: 145.8% above the Media - Diversified median (#213 of 632)
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
Get the complete analysis for XSWX:NFLX
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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