Netflix (XSWX:NFLX) Risk Assessment


XSWX:NFLX Netflix Inc XSWX:NFLX
91 GF Score
Price CHF61.82
GF Value CHF80.40
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Netflix Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Netflix is: Low Risk: Strong fundamentals, worth long-term holding.

Netflix  (XSWX:NFLX) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Netflix Risk Assessment Related Terms

XSWX:NFLX vs DIS, WBD, LYV: Risk Assessment Comparison

For the Entertainment subindustry, Netflix's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Media - Diversified Industry

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

* The bar in red indicates where Netflix's Risk Assessment falls into.


XSWX:NFLX
91GF Score
Netflix Inc XSWX:NFLX
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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Is Netflix (XSWX:NFLX) Overvalued in 2026?

Based on GuruFocus' analysis, Netflix stock appears to be undervalued. The current stock price of CHF61.82 is trading 23.1% below its estimated GF Value™ of CHF80.40. GuruFocus considers Netflix to be Modestly Undervalued.

Key valuation signals for XSWX:NFLX:

  • Risk Assessment:
  • GF Value™: CHF80.40 vs. price of CHF61.82 (23.1% below fair value)
  • GF Score™: 91/100 with 1 warning sign

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 Business Description

Address 121 Albright Way, Los Gatos, CA, USA, 95032
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

Get the complete analysis for XSWX:NFLX

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF61.82
Price
CHF80.40
GF Value