Netflix (LIM:NFLX) ROCE %: 58.26% (As of Mar. 2026)


LIM:NFLX Netflix Inc LIM:NFLX
91 GF Score
Price $72.50
GF Value $100.70
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Netflix ROCE %?

Netflix LIM:NFLX +0.42% 91 ROCE % is 58.26% as of Mar. 2026. GuruFocus rates LIM:NFLX with a GF Score™ of 91/100 and a GF Value™ of $100.70 (Modestly Undervalued). The stock has 1 warning sign investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Netflix's annualized ROCE % for the quarter that ended in Mar. 2026 was 58.26%.

Netflix  (LIM:NFLX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Netflix ROCE % Related Terms

Netflix ROCE % Historical Data

* Premium members only.

The historical data trend for Netflix's ROCE % 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.

Netflix ROCE % Chart

Netflix Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.55 15.56 17.27 25.82 30.86

Netflix Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial 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 31.89 35.27 29.41 26.74 58.26
LIM:NFLX
91GF Score
Netflix Inc LIM:NFLX
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Netflix ROCE % Calculation

Netflix's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=13499.062/( ( (53630.374 - 10755.4) + (55596.993 - 10980.93) )/ 2 )
=13499.062/( (42874.974+44616.063)/ 2 )
=13499.062/43745.5185
=30.86 %

Netflix's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=27236.652/( ( (55596.993 - 10980.93) + (61015.914 - 12131.578) )/ 2 )
=27236.652/( ( 44616.063 + 48884.336 )/ 2 )
=27236.652/46750.1995
=58.26 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 58.26% mean?
Netflix (LIM:NFLX) has a ROCE % of 58.26% as of Mar. 2026.
Is Netflix's ROCE % too high?
Netflix's current ROCE % is 58.26%. The Media - Diversified industry median ROCE % is 3.10. Netflix's value of 58.26% is 1779.4% above this industry median. Overall, Netflix has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netflix's ROCE % compare to DIS and WBD?
Netflix's ROCE % of 58.26% can be compared against companies in the Media - Diversified industry. The industry median ROCE % is 3.10. Netflix's value of 58.26% is 1779.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Media - Diversified company?
The median ROCE % among Media - Diversified companies is 3.10, based on 988 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Netflix's current ROCE % of 58.26% is 1779.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Media - Diversified industry, the median ROCE % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netflix's current ROCE % is 58.26%. 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 (LIM:NFLX) is currently considered Modestly Undervalued. The stock's GF Value™ is $100.70, compared to a current price of $72.50 — trading 28% below its estimated fair value. The current ROCE % is 58.26% and 1779.4% above the Media - Diversified industry median of 3.10. Netflix's overall GF Score™ is 91/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Netflix (LIM:NFLX), the current ROCE % is 58.26% 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 (LIM:NFLX) Overvalued in 2026?

Based on GuruFocus' analysis, Netflix stock appears to be undervalued. The current stock price of $72.50 is trading 28% below its estimated GF Value™ of $100.70. GuruFocus considers Netflix to be Modestly Undervalued.

Key valuation signals for LIM:NFLX:

  • ROCE %: 58.26%
  • GF Value™: $100.70 vs. price of $72.50 (28% below fair value)
  • GF Score™: 91/100 with 1 warning sign
  • Industry Position: 1779.4% above the Media - Diversified median

No single metric tells the full story. See the LIM: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

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

$72.50
Price
$100.70
GF Value