Key statistics

Is NFLX a good stock to buy in 2026?

NFLX stock currently trades at a P/E ratio of 36.11x, which is notably below the Entertainment sector average of 47.5x, suggesting a potential relative discount in its NFLX valuation. Our Discounted Cash Flow (DCF) model indicates a fair value of $110.52, implying an 18.4% upside from current levels. With 64.3% of analysts rating NFLX as a “Buy,” the consensus is largely positive, making NFLX a good stock to consider for growth-oriented portfolios. This is not investment advice.

2026 NFLX price scenarios

Based on analyst consensus of $117.25 from 98 analysts. Not a prediction by Alert Invest.

About Netflix, Inc. (NFLX)

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services in the United States. The company has approximately 222 million paid members in 190 countries. Net

Netflix, Inc., under the leadership of CEO Theodore A. Sarandos, employs approximately 14,000 individuals globally. The company’s distinctive strengths lie in its unparalleled global content library, sophisticated recommendation algorithms that drive user engagement, and a proven track record of producing award-winning original programming. These factors contribute significantly to its brand loyalty and market leadership within the highly competitive streaming industry.

NFLX competitive moat and business analysis

Netflix’s competitive advantage stems from its powerful brand, vast global subscriber base, and ability to continually invest in high-quality original content. The company boasts an impressive net margin of 24.3%, reflecting strong operational efficiency and pricing power. While specific Return on Equity (ROE) and Return on Invested Capital (ROIC) figures are not available for direct comparison, the robust net margin underscores its capacity to translate revenue into significant profit, a key indicator of sustainable advantage.

For fiscal year 2025, Netflix’s revenue is primarily driven by its streaming subscriptions, encompassing a wide array of TV series, films, and mobile games across various genres. The company’s global footprint is extensive, serving approximately 222 million paid members in 190 countries, demonstrating revenue generation from a broad geographic distribution rather than being concentrated in a few regions. The precise segment and geographic breakdowns for FY2025 indicate a diversified yet streaming-centric business model.

The moat trend for NFLX stock appears to be strengthening, supported by a healthy 15.9% year-over-year revenue growth. Netflix is actively evolving its business model, introducing ad-supported tiers and cracking down on password sharing to broaden its revenue streams and capture a larger market share. Although no specific transcript quote is available, these strategic shifts aim to enhance customer lifetime value and reinforce its dominant position in the streaming wars.

When assessing NFLX valuation, it’s crucial to compare it against industry peers. Direct competitors in the entertainment space include Disney (DIS), IMAX, and Live Nation Entertainment (LYV). While Disney offers a diversified media empire with its own streaming services, IMAX focuses on cinematic technology, and Live Nation on live events. NFLX stands out with its pure-play streaming model. For a detailed comparison, investors can examine NFLX vs DIS, NFLX vs IMAX, and NFLX vs LYV to understand their respective strengths and weaknesses across various financial metrics.

Netflix, Inc. analyst rating

Based on 98 analysts. 64.3% rate NFLX Buy or Strong Buy.

A 64.3% “Buy” rating for NFLX stock is a strong signal within the Communication Services sector, indicating a positive outlook from a majority of covering analysts. This level of conviction suggests that many see NFLX as a good stock with significant potential for appreciation, supported by its strategic initiatives and market position.

Is NFLX undervalued or overvalued?

When evaluating NFLX valuation, its current P/E ratio of 36.11x stands considerably below the Entertainment sector average of 47.5x. This relative discount suggests that, based on earnings multiples, NFLX stock might be considered more attractively valued than many of its industry counterparts, presenting an interesting proposition for investors seeking growth at a reasonable price.

Furthermore, a Discounted Cash Flow (DCF) analysis points to a fair value of $110.52 for NFLX, implying an 18.4% upside from the current trading price. This DCF assessment, which considers future cash flows, reinforces the idea that the market may be undervaluing Netflix’s long-term earning potential, making the question “is NFLX a good stock” particularly relevant from a value perspective.

NFLX financial health & key metrics

For value investors, assessing NFLX stock involves a blend of caution and opportunity. While its P/E ratio of 36.11x appears favorable compared to the sector average of 47.5x, its P/B ratio of 14.9x suggests a premium based on book value. The DCF fair value of $110.52, indicating an 18.4% upside, is a positive signal, but the lack of an ROE figure and a “Fair” FCF yield of 2.39% might warrant deeper examination into capital efficiency and cash generation. Overall, the current NFLX valuation presents aspects that could appeal to value-conscious investors, particularly given its strong profitability and growth, but requires careful consideration of its asset-light model and content investment cycles.

Netflix, Inc. earnings history & next report

Next earnings: 2026-07-16. EPS estimate: $0.86.

Investors will be closely watching Netflix’s next earnings report on 2026-07-16, with an estimated EPS of $0.86. Key metrics to scrutinize include global subscriber additions, average revenue per user (ARPU), and the performance of its new ad-supported tiers and efforts against password sharing. Commentary on content pipeline strength, international market expansion, and any shifts in capital allocation strategy will also provide crucial insights into the future trajectory and NFLX valuation.

NFLX insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent NFLX analyst rating changes

Netflix, Inc. stock news today

How does NFLX compare to its peers?

Understanding the competitive landscape is crucial for assessing NFLX stock. Netflix operates in the dynamic Communication Services sector, specifically within entertainment, where it faces off against a diverse set of companies. Here’s how Netflix compares to some of its prominent peers: DIS (The Walt Disney Company), IMAX Corporation, and Live Nation Entertainment (LYV). Each offers a unique proposition, but all vie for consumer attention and discretionary spending, influencing NFLX valuation and market perception.

FAQ — Netflix, Inc. (NFLX) stock