Rankings Software, cloud & internet Netflix
Netflix
88
15070100
A view of the same findings, not a new score. How it works
In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.
Biggest deductions
- Customers move (engagement)−5
- Absolute price level−4
- Peers−3
Strengths
- Broad customer base+2
- Buybacks below FCF+1
How the score is built
From 100 to 88, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 62.34 USD
- Median analyst target
- 82.00 USD
- Upside to median
- +31.5%
- Analysts
- 51
- Target range
- 57.00 – 126.00 USD
- 52-week change
- −44%
- P/E (trailing)
- 18.0
- Forward P/E
- 17.4
- PEG
- 0.83
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 2 findings−4 of −30
- −2Quality of growthThe net result of USD 13.7bn TTM includes USD 2.8bn in breakup fee from Warner Bros. Discovery (pre-tax margin 34.1% vs operating margin 29.7%). Consensus expects only 6% EPS growth in 2027, and the Q2 operating margin fell 0.7 pp to 33.4%.
- −2FCF conversionFCF USD 11.2bn TTM incl. the break fee, i.e. about USD 8-9bn underlying vs an adjusted net result of about USD 11bn; content amortization of USD 17.3bn a year requires continuing larger cash content investments.
Price
Today's multiples against the company's own history and its peers. · 3 findings−7 of −35
- ±0Multiples vs own historyForward P/E 19.9 vs 30.5–52.2 in 2021–2025, EV/EBITDA 19.9 vs 23.7–43.3 and P/FCF 25.7 vs 30.8–81.1: the lowest level in at least five years, also after adjusting for the breakup fee (about 22–23 forward).
- −3PeersForward P/E 19.9 and EV/EBITDA 19.9 vs Disney 13.8 and 10.5. The premium is partly earned (operating margin 30% and ROIC 32%), but still 45–90% above the nearest large competitor.
- −4Absolute price levelMarket cap USD 286bn, FCF yield 3.9% and earnings yield 4.8%, but both are lifted by the one-off fee; underlying FCF yield about 3%. P/S 5.9, no dividend.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−11 of −35
- −5Customers move (engagement)Wells Fargo downgraded on 18/9-2026 to Underweight (price target 80 → 57 USD) due to falling viewer engagement and a weaker content programme in H2 – the first sell recommendation on the stock. In July Pivotal, Barclays, TD Cowen, Bernstein and Evercore cut price targets, partly because younger viewers are moving to TikTok and YouTube Shorts.
- −3Guidance and announcementsThe stock fell on weak guidance after both Q1 (−9%) and Q2; 2026 revenue was narrowed to USD 51.0–51.4bn, and ad sales (target USD 3.0bn) are progressing more slowly than expected.
- −2CompetitionYouTube has 14.2% of American TV time (record in July 2026) vs Netflix's 8.0%, and Paramount Skydance won the bidding war for Warner Bros. and creates a larger rival in film and streaming.
- −1ManagementCo-founder Reed Hastings left the board in April 2026, the same week the share fell on guidance.
Plus
Only documented strengths. · 2 findings+3 of +15
- +1Buybacks below FCFBuybacks of USD 10.0bn TTM are below FCF of USD 11.2bn (but close, and only because the break fee is included); the share count fell 1.5% over a year, and a new programme of USD 25bn is approved.
- +2Broad customer baseOver 325m paying households split across UCAN (USD 21.1bn), EMEA (15.6), LATAM (5.9) and APAC (5.8); no customer concentration.
Caveats
What the score does not capture, or where the data is weak.
The TTM figures (June 2026) include the USD 2.8bn break fee from Warner Bros. Discovery in Q1 2026: net income, EPS, FCF and 2026 consensus are therefore inflated, and adjusted P/E is approx. 22–26 rather than 19.9–21.6. Q3 report 20/10-2026. Insider trading (management's ongoing sales) has not been examined. Streaming/media is placed under Software, cloud & internet (closest on the list).
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