NetflixXSWX:NFLX 99 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates XSWX:NFLX with a GF Score™ of 99/100 and a GF Value™ of CHF81.75 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 863 Media - Diversified companies, Netflix ranks better than 99.88% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Netflix's annualized net income for the quarter that ended in Mar. 2026 was CHF16,637 Mil. Netflix's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF-3,341 Mil. Therefore, Netflix's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Netflix's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:NFLX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
XSWX:NFLX's Return-on-Tangible-Equity is ranked better than 99.88% of 863
companies
in the Media - Diversified industry
Industry Median: 5.42
vs XSWX:NFLX: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Netflix Return-on-Tangible-Equity Related Terms
Netflix Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Netflix's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Entertainment subindustry, Netflix's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Netflix's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Netflix's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Netflix (XSWX:NFLX) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Netflix and its competitors. According to the industry distribution chart, Netflix ranks #1 out of 863 companies in the Media - Diversified industry, placing it in the top 0.099999999999994%.
Is Netflix's Return-on-Tangible-Equity too high?
Netflix's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Netflix ranks #1 out of 863 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 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netflix's Return-on-Tangible-Equity compare to DIS and WBD?
According to the Media - Diversified industry distribution chart, Netflix ranks #1 out of 863 companies for Return-on-Tangible-Equity. This places Netflix in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.42. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Media - Diversified company?
The median Return-on-Tangible-Equity among Media - Diversified companies is 5.42, based on 863 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Netflix and its competitors. For the Media - Diversified industry, the median Return-on-Tangible-Equity is 5.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netflix's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 CHF81.75, compared to a current price of CHF59.16 — trading 27.6% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Netflix's overall GF Score™ is 99/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Netflix (XSWX:NFLX), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 (XSWX:NFLX) Overvalued in 2026?
Based on GuruFocus' analysis, Netflix stock appears to be undervalued.
The current stock price of CHF59.16 is trading 27.6% below its estimated GF Value™ of CHF81.75.
GuruFocus considers Netflix to be Modestly Undervalued.
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.
99GF Score
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