Netflix Stock Price and Value Analysis

Should you buy Netflix stock? (NasdaqGS:NFLX). Let's see how it does in our automated value investing analysis system.

NFLX Free Cash Flow Trend

Free Cash Flow trendline for NFLX
Free Cash Flow trendline for Netflix

Based on historical returns, we believe that Netflix can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company is very stable.
  • This stock looks overpriced.
  • This company is making money at a modest rate.
  • This company has wild ups and downs.
  • This company pays no dividend.

Inside the NFLX Numbers

NFLX Price
(Netflix stock price per share)
$516.39
[?] NFLX Fair Price
(based on intrinsic value)
$60.53
[?] NFLX Safety Price (based on a variable margin of safety) $48.42
[?] PE Ratio versus Sector 416% higher than other Technology stocks
[?] PE Ratio versus Industry 1159% higher than other Unknown stocks
[?] Cash Yield 1.18%
[?] Free Cash Flow Jitter 92%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 7,683,688 shares shorted. With 437,057,901 shares available for purchase and an average trading volume over the past 10 trading days of 3,959,371, it would take at least 1.941 days for all of the short holders to cover their shorts.

Is Netflix Stock on Sale?

We believe that Netflix may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Netflix looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy NFLX Stock?

Does Netflix have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.