P/E Ratio
Higher than 36% of Communication Services sector peers
Updated 22h ago
Sector Performance
36th percentileNFLX
28.3x
Sector Median
29.4x
Sector Avg
46.0x
Deep Analysis
Netflix trades at a P/E ratio of 30.0x, meaning investors pay $30 for every $1 of annual earnings, reflecting expectations for future growth.
This valuation sits 4.6x higher than the Communication Services sector median of 25.4x, placing Netflix at the 100th percentile among sector peers—the most expensive on this metric. The ratio has remained flat at 30.0x over the last two quarters, showing no recent movement in valuation multiples. This premium valuation suggests the market prices in stronger earnings growth prospects than typical for the sector, though the stalled trend offers limited evidence of multiple expansion. For investors, the elevated P/E leaves less room for disappointment on earnings delivery compared to sector averages.
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 28.3x compares to a Communication Services sector median of 29.4x, placing it in the 36th percentile.
Who are NFLX's closest peers by P/E Ratio?
The closest Communication Services peers by P/E Ratio include: GOOG (29.4x), GOOGL (29.3x), SPOT (32.7x), NYT (32.8x), ZD (35.6x).
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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28.3x
Sector Median
29.4x
Sector Avg
46.0x
How NFLX's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.