GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Netflix Inc (MEX:NFLX) » Definitions » 5-Year Sharpe Ratio

Netflix (MEX:NFLX) 5-Year Sharpe Ratio : 0.45 (As of Jul. 06, 2025)


View and export this data going back to 2012. Start your Free Trial

What is Netflix 5-Year Sharpe Ratio?

The 5-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past five years. As of today (2025-07-06), Netflix's 5-Year Sharpe Ratio is 0.45.


Competitive Comparison of Netflix's 5-Year Sharpe Ratio

For the Entertainment subindustry, Netflix's 5-Year Sharpe Ratio, along with its competitors' market caps and 5-Year Sharpe 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's 5-Year Sharpe Ratio Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Netflix's 5-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Netflix's 5-Year Sharpe Ratio falls into.


;
;

Netflix 5-Year Sharpe Ratio Calculation

The 5-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset in the last five years. A stock / portfolio's 5-Year Sharpe Ratio can be calculated by dividing the difference between the five-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the investment returns over the past five years.


Netflix  (MEX:NFLX) 5-Year Sharpe Ratio Explanation

The 5-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past five years. It is calculated as the annualized result of the average five-year monthly excess returns divided by its standard deviation in the five-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.


Netflix 5-Year Sharpe Ratio Related Terms

Thank you for viewing the detailed overview of Netflix's 5-Year Sharpe Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


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.