Netflix, Inc.
Subscription streaming service offering series, films, live events and games in 190 countries, with an ad-supported tier.
- Rating
- Price
- $67.05
- Price target
- $88.00
- Implied return
- +31%
- Market value
- $275.3bn
- Next results
- Jan 19, 2027 (expected)
Our view
Vishal Bhargava, CFA · updated Oct 23, 2026Netflix earns a 34.6% operating margin against a 13.7% peer median, yet trades at 17.8x forward earnings against a 22.6x median5 (source: yfinance peer statistics and analyst targets, 22 October 2026). The FY27E EPS slowdown the market sees comes from the one-off $2.8bn WBD fee; adjusted EPS grows 26%, against consensus growth of 5.1%4 (source: yfinance consensus estimates and earnings history, 22 October 2026). FY27E revenue growth of 11.1% rests on member growth, pricing and advertising, the levers management names for 20271 (source: Netflix Q3 26 earnings call, 20 October 2026). Our EPS is 2.9% above consensus, so the call is the multiple moving from 17.3x to the peer median.
What could prove us wrong
- The multiple does not re-rate and stays at 17.3x FY27E EPS: −$21 a share against the target.
- Engagement and growth fall short, with 8% growth, a 32% margin and a 15.0x multiple: the $52 bear case, −$36 a share.
- A slate misfire leaves FY27E revenue 2% below plan: −$5 a share.
Ask the analyst about NFLX
Answers come from Penmark’s NFLX research and the company’s filings, with a source for each claim. Change an assumption and the assistant reruns the report’s valuation.