NFLX FCF Yield Analysis
Higher than 67% of Communication Services sector peers
Updated 225h ago·SEC filings & market data
Key Takeaway
Netflix’s FCF yield of 3.0% means the company generates free cash flow (operating cash minus capital spending) equal to 3.0% of its market value, so a non-expert investor can think of it as the cash return the business produces on its stock price.
Sector Performance
67th percentileNFLX
3.0%
Sector Median
2.4%
Sector Avg
1.8%
Prior Period
2.9%(Aug 2026)
Deep Analysis
Netflix’s FCF yield of 3.0% means the company generates free cash flow (operating cash minus capital spending) equal to 3.0% of its market value, so a non-expert investor can think of it as the cash return the business produces on its stock price.
This sits above the Communication Services sector median of 2.4%, placing Netflix in the 67th percentile among peers, so the yield is better than roughly two-thirds of similar companies. The trend is stable, with the yield moving from a year-ago 3.2% to 3.0% (a -3.2% year-over-year change) and rising from 2.9% last quarter (+3.4% quarter-over-quarter). The combination of a moderate, stable yield and above-median sector position suggests limited cash-flow pressure and a steady valuation, which lowers near-term risk but offers no clear upside catalyst from this metric. This directly supports the overall NEUTRAL verdict: the FCF yield is neither exceptionally high to signal an undervalued bargain nor low enough to indicate distress, leaving the stock in a balanced position.
Frequently Asked Questions
What does the FCF Yield tell investors about NFLX?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does NFLX's FCF Yield compare to its sector?
NFLX's FCF Yield of 3.0% compares to a Communication Services sector median of 2.4%, placing it in the 67th percentile.
Who are NFLX's closest peers by FCF Yield?
The closest Communication Services peers by FCF Yield include: GOOGL (1.8%), META (3.1%), TWTR (-0.6%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master NFLX's Valuation
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NFLX
3.0%
Sector Median
2.4%
Sector Avg
1.8%
How NFLX's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.