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Arphra AIPlain-English read on Netflix, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $382.83B | $396.53B | — | — | — | — |
| Enterprise value | — | — | — | $393.02B | $401.96B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 10.08 | 8.90 | — | — | — | — |
| EV / FCF | — | — | — | 56.78 | 42.49 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +2.28% | +2.77% | — | — | — | — |
| Free cash flow yield | — | — | — | +1.81% | +2.39% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +41.64% | +39.37% | +41.54% | +46.06% | +48.49% | +45.33% | +45.67% | +45.05% | +44.98% |
| Operating margin | +20.86% | +17.82% | +20.62% | +26.71% | +29.49% | +25.16% | +25.16% | +25.15% | +25.27% |
| EBITDA margin | +64.13% | +64.31% | +63.78% | +67.47% | +66.96% | +64.31% | +66.29% | +66.44% | +65.38% |
| EBIT margin | +22.24% | +18.88% | +20.62% | +27.40% | +29.88% | +25.20% | +25.24% | +25.89% | +25.47% |
| Pre-tax margin | +19.67% | +16.65% | +18.40% | +25.55% | +28.16% | +23.84% | +24.48% | +24.53% | +23.38% |
| Net margin | +17.23% | +14.21% | +16.04% | +22.34% | +24.30% | +20.78% | +20.45% | +21.34% | +20.83% |
| Cost structure | |||||||||
| Cost of revenue / sales | +58.36% | +60.63% | +58.46% | +53.94% | +51.51% | +54.80% | +55.45% | +53.50% | +54.51% |
| R&D intensity | +7.66% | +8.58% | +7.93% | +7.50% | +7.51% | +7.82% | +7.78% | +7.57% | +7.56% |
| SG&A intensity | +13.12% | +12.98% | +12.98% | +11.84% | +11.49% | +11.99% | +12.20% | +12.38% | +11.87% |
| Effective tax rate | +12.39% | +14.67% | +12.85% | +12.58% | +13.69% | +12.79% | +13.04% | +13.07% | +13.09% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +32.28% | +21.62% | +26.27% | +35.21% | +41.26% | +33.78% | +34.10% | +34.40% | +34.67% |
| Return on assets (ROA) | +11.48% | +9.24% | +11.10% | +16.24% | +19.75% | +15.23% | +15.19% | +15.85% | +15.82% |
| Return on capital (ROC) | +18.24% | +16.03% | +18.51% | +24.38% | +32.44% | +24.36% | +24.28% | +24.14% | +24.38% |
| Return on invested capital (ROIC) | +15.06% | +12.79% | +14.40% | +20.38% | +26.73% | +20.11% | +19.73% | +20.48% | +20.10% |
| Asset turnover | +66.61% | +65.06% | +69.20% | +72.72% | +81.27% | +73.29% | +74.29% | +74.30% | +75.93% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +17.23% | +14.21% | +16.04% | +22.34% | +24.30% | +20.78% | +20.45% | +21.34% | +20.83% |
| Asset turnover (× revenue / assets) | +66.61% | +65.06% | +69.20% | +72.72% | +81.27% | +73.29% | +74.29% | +74.30% | +75.93% |
| Equity multiplier (× assets / equity) | +281.30% | +233.88% | +236.70% | +216.74% | +208.89% | +221.85% | +224.42% | +217.02% | +219.20% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.67 | 0.65 | 0.69 | 0.73 | 0.81 | 0.73 | 0.74 | 0.74 | 0.76 |
| Fixed-asset turnover | 22.44 | 22.61 | 22.61 | 24.47 | 22.54 | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 36.92 | 19.92 | 18.31 | 19.62 | 17.49 | — | — | — | — |
| Payables turnover | 20.70 | 28.54 | 26.38 | 23.38 | 25.84 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 9.89 | 18.32 | 19.94 | 18.61 | 20.87 | — | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 17.64 | 12.79 | 13.84 | 15.61 | 14.12 | — | — | — | — |
| Cash conversion cycle | -7.75 | 5.53 | 6.10 | 3.00 | 6.75 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 0.08 | 0.45 | 1.35 | 0.85 | 0.92 | 0.99 | 1.04 | 0.99 | 1.01 |
| FCF / Net income | -0.03 | 0.36 | 1.28 | 0.79 | 0.86 | 0.93 | 0.97 | 0.94 | 0.93 |
| FCF margin | -0.44% | +5.12% | +20.54% | +17.75% | +20.94% | +19.38% | +19.85% | +19.97% | +19.41% |
| OCF margin | +1.32% | +6.41% | +21.57% | +18.87% | +22.46% | +20.56% | +21.36% | +21.18% | +20.95% |
| CapEx / Revenue | +1.77% | +1.29% | +1.03% | +1.13% | +1.52% | +1.21% | +1.26% | +1.23% | +1.20% |
| CapEx / D&A | 0.04 | 0.03 | 0.02 | 0.03 | 0.04 | — | — | — | — |
| Stock-based comp / Revenue | +1.36% | +1.82% | +1.01% | +0.70% | +0.82% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 1.12 | 1.00 | 1.20 | 1.98 | 2.53 | 3.56 | 3.84 | 4.58 | 5.30 |
| EPS · basic | 1.16 | 1.01 | 1.23 | 2.03 | 2.58 | 3.64 | 3.92 | 4.67 | 5.41 |
| Book value / share | 3.48 | 4.60 | 4.58 | 5.63 | 6.17 | 7.25 | 7.97 | 9.09 | 9.49 |
| Tangible BV / share | -3.31 | -2.65 | -2.46 | -1.75 | -1.43 | 7.25 | 7.97 | 9.09 | 9.49 |
| Sales / share | 6.52 | 7.01 | 7.50 | 8.88 | 10.47 | 11.79 | 13.29 | 14.66 | 15.79 |
| Operating CF / share | 0.09 | 0.45 | 1.62 | 1.68 | 2.35 | 2.42 | 2.84 | 3.10 | 3.31 |
| Free cash flow / share | -0.03 | 0.36 | 1.54 | 1.58 | 2.19 | 2.28 | 2.64 | 2.93 | 3.07 |
| Dividends / share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Payout ratio | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Retention ratio | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +6.46% | +6.67% | +15.65% | +15.85% | +13.77% | +11.60% | +9.98% | +8.33% | +10.98% |
| Gross profit · YoY | — | +0.66% | +12.54% | +28.23% | +21.96% | +6.37% | +12.42% | +8.50% | +8.14% | +12.06% |
| Profit | ||||||||||
| Operating income · YoY | — | -9.07% | +23.45% | +49.81% | +27.92% | -2.93% | +11.59% | +9.91% | +8.86% | +13.67% |
| EBITDA · YoY | — | +6.77% | +5.78% | +22.35% | +14.97% | +9.26% | +15.04% | +10.23% | +6.60% | +11.25% |
| Net income · YoY | — | -12.20% | +20.39% | +61.09% | +26.05% | -2.74% | +9.84% | +14.73% | +5.77% | +13.65% |
| Operating | ||||||||||
| EBIT · YoY | — | -9.62% | +16.48% | +53.64% | +26.34% | -4.03% | +11.75% | +12.83% | +6.56% | +12.87% |
| R&D · YoY | — | +19.23% | -1.30% | +9.33% | +15.93% | +18.51% | +11.02% | +7.01% | +8.21% | +10.80% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -10.71% | +20.00% | +65.00% | +27.78% | +40.65% | +7.79% | +19.46% | +15.63% | +21.44% |
| EPS · basic · YoY | — | -12.93% | +21.78% | +65.04% | +27.09% | +41.08% | +7.66% | +19.07% | +15.88% | +21.22% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $18.12B | $14.35B | $16.97B | $17.99B | $14.46B | $21.49B | $25.05B | $26.6B | $29.77B |
| Net debt | $12.09B | $9.21B | $9.86B | $10.19B | $5.43B | $10.76B | $13.1B | $13.59B | $15.54B |
| Net debt / EBITDA | 0.63 | 0.45 | 0.46 | 0.39 | 0.18 | 0.33 | 0.34 | 0.32 | 0.35 |
| Debt / equity | 1.14 | 0.69 | 0.82 | 0.73 | 0.54 | 0.68 | 0.73 | 0.68 | 0.73 |
| Debt / assets | +40.63% | +29.54% | +34.83% | +33.55% | +26.01% | +30.64% | +32.44% | +31.32% | +33.08% |
| Equity / assets | +35.55% | +42.76% | +42.25% | +46.14% | +47.87% | +45.08% | +44.56% | +46.08% | +45.62% |
| Coverage | |||||||||
| EBITDA / interest expense | 24.87 | 28.79 | 28.73 | 36.61 | 38.96 | 32.70 | 33.63 | 35.26 | 34.67 |
| Operating income / interest | 8.09 | 7.98 | 9.29 | 14.49 | 17.16 | 12.80 | 12.77 | 13.34 | 13.40 |
| Interest expense | $765.62M | $706.21M | $748.6M | $718.73M | $776.51M | $1.01B | $1.13B | $1.19B | $1.29B |
| Liquidity | |||||||||
| Current ratio | 0.95 | 1.17 | 1.12 | 1.22 | 1.19 | — | — | — | — |
| Quick ratio | 0.80 | 0.96 | 1.01 | 1.08 | 1.06 | — | — | — | — |
| Cash ratio | 0.71 | 0.65 | 0.80 | 0.73 | 0.82 | — | — | — | — |
| Working capital | -$419.14M | $1.34B | $1.06B | $2.34B | $2.04B | — | — | — | — |
| Working capital / revenue | -1.41% | +4.22% | +3.14% | +6.01% | +4.51% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 8.90x | 10.08x |
| Earnings yield | 2.8% | 2.3% |
| FCF yield | 2.4% | 1.8% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 41.3% | 35.2% |
| ROA | 19.8% | 16.2% |
| ROIC | 25.2% | 20.2% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 0.18 | 0.39 |
| Interest coverage | — | — |
| Current ratio | 1.19x | 1.22x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).