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Is Netflix, Inc. (NFLX) Undervalued? Valuation & Fair Price

At $72.73, the frameworks are split on Netflix, Inc. today — Warren Buffett rates it Buy, Benjamin Graham and Phil Town (Rule #1) rate it Avoid, and Peter Lynch rates it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.

NF

Netflix, Inc.

NFLX

Communication Services · Entertainment · NASDAQ

$72.73

P/E 23.5×

CEO

Theodore A. Sarandos

Sector

Communication Services

Industry

Entertainment

Netflix, Inc. serves as a worldwide entertainment provider. Its comprehensive library features television series, motion pictures, documentaries, and mobile games, spanning numerous genres and languages. Members can effortlessly stream this content through a variety of internet-connected devices, including smart TVs, digital media players, cable boxes, and mobile phones. Furthermore, the company continues to offer a DVD-by-mail subscription service to its customers in the United States. With roughly 222 million paying subscribers distributed across 190 countries, Netflix was founded in 1997 and is headquartered in Los Gatos, California.

Investor scorecard

How the four investors rate Netflix, Inc.

A split decision across the frameworks

Warren Buffett
72%Buy
Benjamin Graham
21%Avoid
Peter Lynch
72%Hold
Phil Town (Rule #1)
55%Avoid

Investor model analysis

Details locked

At $72.73, 2 of 4 frameworks say Avoid

Business Quality56/100

Intrinsic Value (DCF)

Warren Buffett's valuation model · select an investor above to switch

Intrinsic Value

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Buy Below

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Strong Buy

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Margin of Safety

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Insider & congress activity

Are insiders buying NFLX?

Over recent SEC Form 4 filings, NFLX insiders bought $0 and sold $14.9M of stock across 11 open-market trades. Insiders sell for many reasons, but they buy for one.

Bought $0Sold $14.9M
Recent open-market insider trades for NFLX
InsiderActionSharesValueDate
BARTON RICHARD NdirectorSell720$54KSep 10, 2026
BARTON RICHARD NdirectorSell720$55KSep 9, 2026
BARTON RICHARD NdirectorSell720$56KSep 8, 2026
Neumann Spencer AdamChief Financial OfficerSell9,248$701KAug 10, 2026
Peters Gregory KCo-CEOSell27,312$2.0MAug 6, 2026

Members of Congress have also reported 50 trades in NFLX. See the full insider & congress timeline.

Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.

See the interactive insider chart & every trade

Scenario analysis

Bear, base & bull

Three growth assumptions, three fair values — and where today's price lands

What's working

Key strengths

Identified by Buffett framework analysis

Return on Equity

ROE Quality (Low Leverage)

Debt Levels

Risk factors & concerns — free account

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Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20252024202320222021
Revenue$45.2B
$39.0B
$33.7B
$31.6B
$29.7B
Rev. Growth+15.9%+15.6%+6.7%+6.5%—
Net Income$11.0B$8.7B$5.4B$4.5B$5.1B
Net Margin24.3%22.3%16.0%14.2%17.2%
EPS (Diluted)$2.58$2.03$1.23$1.01$1.16
Free Cash FlowLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to view

Full analysis included

See the complete picture for NFLX

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Buy & sell targetsFull checklistRisk breakdown

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Educational Use Only · Not Financial Advice

Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.