NFLX EV/EBITDA Analysis
Higher than 33% of Communication Services sector peers
Updated 397h ago·SEC filings & market data
Key Takeaway
Netflix’s current EV/EBITDA of 22.1x means the company’s enterprise value (its total market value including debt) is 22.1 times its earnings before interest, taxes, depreciation, and amortization (a proxy for operating cash flow).
Sector Performance
33th percentileNFLX
22.1x
Sector Median
24.4x
Sector Avg
67.1x
Prior Period
21.9x(Jul 2026)
Deep Analysis
Netflix’s current EV/EBITDA of 22.1x means the company’s enterprise value (its total market value including debt) is 22.1 times its earnings before interest, taxes, depreciation, and amortization (a proxy for operating cash flow).
This multiple sits below the Communication Services sector median of 24.5x, placing Netflix in the 40th percentile among its sector peers—suggesting a relatively lower valuation compared to the typical company in its industry. The metric has been stable over the last eight quarters, with a year-over-year change not available and a quarter-over-quarter increase of just +0.6%. The combination of a below-median level and a stable, flat trend implies limited near-term valuation risk, as the stock is not stretched relative to peers, but also no clear catalyst for a re-rating. This neutral risk-opportunity profile directly supports the overall NEUTRAL verdict on the stock, offering neither a compelling undervaluation signal nor a reason for concern.
Frequently Asked Questions
What does the EV/EBITDA tell investors about NFLX?
A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.
How is the EV/EBITDA calculated?
EV/EBITDA is calculated as: Enterprise Value / EBITDA.
How does NFLX's EV/EBITDA compare to its sector?
NFLX's EV/EBITDA of 22.1x compares to a Communication Services sector median of 24.4x, placing it in the 33th percentile.
Who are NFLX's closest peers by EV/EBITDA?
The closest Communication Services peers by EV/EBITDA include: GOOGL (26.8x), META (15.1x), TWTR (204.5x).
Learn More About EV/EBITDA
The Formula
Enterprise Value / EBITDA
Why It Matters
A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.
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NFLX
22.1x
Sector Median
24.4x
Sector Avg
67.1x
How NFLX's EV/EBITDA compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.