NFLXNEUTRAL

NFLX P/E Ratio Analysis

23.5x

Higher than 100% of Communication Services sector peers

Updated 226h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 23.5x means investors pay $23.50 for every $1 of Netflix’s annual earnings.

Sector Performance

100th percentile

NFLX

23.5x

Sector Median

21.8x

Sector Avg

20.7x

Prior Period

24.2x(Aug 2026)

↑ Improving

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Deep Analysis

The P/E ratio of 23.5x means investors pay $23.50 for every $1 of Netflix’s annual earnings.

This is above the sector median of 21.8x, and Netflix sits at the 100th percentile among its Communication Services peers. The metric has been stable over the last eight quarters, with a year-over-year increase of +6.0% and a quarter-over-quarter decline of -2.7%. The level is modestly higher than peers, but the flat trend softens any valuation stretch, pointing to balanced risk rather than a clear edge. For investors, this combination offers neither a cheap entry nor an obvious overvaluation signal. This supports the overall NEUTRAL verdict, as the P/E neither reinforces a bullish nor bearish case.

Frequently Asked Questions

What does the P/E Ratio tell investors about NFLX?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does NFLX's P/E Ratio compare to its sector?

NFLX's P/E Ratio of 23.5x compares to a Communication Services sector median of 21.8x, placing it in the 100th percentile.

Who are NFLX's closest peers by P/E Ratio?

The closest Communication Services peers by P/E Ratio include: META (21.8x), GOOGL (16.9x).

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Learn More About P/E Ratio

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

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