Stock fact sheet · data as of
Netflix, Inc. (NFLX): fair value, margin of safety and Wheel Score
Ticker symbol NFLX · Communication Services · Entertainment · United States · Growth
Is NFLX undervalued?
NFLX has a margin of safety of 30%: the stock closed at 66.39 on 5 Nov 2026 against a GLS average fair value of 95.16. 5 of the 8 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 8 models disagree widely: Graham Number gives 23.86 while GLS Growth gives 218.65. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, NFLX is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 35, growth score 79, out of 100).
Nine valuation models for NFLX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 109.47 | +65% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 23.86 | -64% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 135.83 | +105% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 54.28 | -18% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 218.65 | +229% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 70.57 | +6% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 108.94 | +64% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 39.68 | -40% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -3.83 | -106% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 86.21 | +30% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health NFLX scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.9 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are high - ROIC 26.7%, ROE 41.3%, ROA 19.8% - with debt at 0.54 times equity and a free-cash-flow yield of 4.1%.
Netflix, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Streaming revenues 100% (fiscal year FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 6/10 on the GLS smart-money scales; the last recorded Congressional buy was on 14 Sep 2026.
| Piotroski F-score | 7 / 9 | ROIC | 26.7% |
|---|---|---|---|
| GLS Moat | 6.9 / 10 | ROE | 41.3% |
| Debt / equity | 0.54 | ROA | 19.8% |
| Free-cash-flow yield | 4.1% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 6 / 10 |
Wheel Score 90: Prime
NFLX scores 90 out of 100 on the Wheel Score, in the Prime band (85 and above): it passes all 9 Wheel Trade Filters and ranks strongly on value strong, premium strong, moat good, health good, red flags good, option trading strong, stability good. Prime stocks stand out among those that pass - the Sunday Scan is the top 10 by Wheel Score.
Implied volatility is 34% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. The option chain is deep: 1,934,580 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 49.6M shares a day on a market cap of $276.4B, with a beta of 1.61 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 30% below fair value | |
| Premium | Strong | implied volatility 34% | |
| Moat | Good | moat 6.9/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Strong | 362,451 contracts a day, 1,934,580 open interest | |
| Stability | Good | beta 1.61, $276.4B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 19 Jan 2027, 75 days away - outside the window of a 30-45-day put sold today.
Analysts downgraded NFLX 3 times in the last 30 days with no upgrades; the latest action was a downgrade by Wolfe Research on 22 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Entertainment
The 12 companies below are the closest to Netflix, Inc. by market cap within the Entertainment industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DIS The Walt Disney Company | 118.95 | 125.71 | +5% | 78Good | $205.4B |
| LYV Live Nation Entertainment, Inc. | 183.18 | 60.63 | -202% | 37Weak | $42.7B |
| FOXA Fox Corporation | 69.65 | 86.99 | +20% | 53Fair | $29.4B |
| FOX Fox Corporation | 61.62 | 82.53 | +25% | 53Fair | $27.5B |
| FWONK Liberty Media Corporation | 98.93 | 87.93 | -13% | 33Weak | $24.8B |
| FWONA Formula One Group | 91.03 | 85.75 | -6% | 26Weak | $22.8B |
| FWONB Formula One Group | 85.00 | 70.65 | -20% | 19No options | $22.8B |
| ROKU Roku, Inc. | 162.77 | 134.99 | -21% | 27Weak | $21.6B |
| WMG Warner Music Group Corp. | 32.55 | 23.54 | -38% | 39Weak | $17.0B |
| TKO TKO Group Holdings, Inc. | 193.48 | 319.45 | +39% | 51Fair | $14.1B |
| LLYVA Liberty Live Group | 106.37 | 19.11 | -457% | 23Weak | $10.2B |
| LLYVK Liberty Live Group | 110.35 | 19.12 | -477% | 27Weak | $10.2B |
⚖ Compare NFLX with 7 of them All Communication Services stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about NFLX
Is NFLX undervalued right now?
By the GLS models, yes: at 66.39 the stock is 30% below the average fair value of 95.16 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of NFLX and what does it mean?
NFLX scores 90 out of 100 (Prime). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for NFLX?
95.16 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Netflix, Inc. report earnings next?
The next earnings report is due on 19 Jan 2027, 75 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does NFLX have listed options, and how liquid are they?
Yes. The nightly snapshot found 610 listed contracts with 1,934,580 open interest across all expiries and implied volatility of 34% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.