Is Netflix, Inc. (NFLX) Undervalued?
Based on the current stock price of $94.47 and a P/E ratio of 39.53,Netflix, Inc. has a PEG ratio of 1.42.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.42, NFLX appears to be fairly valued relative to its growth rate of 27.88%.
Based on a PEG ratio of 1.42 (adjusted for dividends).
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How we analyzed NFLX
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 39.53and dividing it by the annual growth rate of 27.88%.
PEG = 39.53 (P/E) ÷ 27.88 (Growth) = 1.42
Frequently Asked Questions about NFLX
What is the current PEG Ratio for Netflix, Inc. (NFLX)?+
The current PEG Ratio for Netflix, Inc. is 1.42. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is NFLX stock undervalued right now?+
Based on the PEG ratio of 1.42, Netflix, Inc. appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for NFLX?+
The PEGY ratio for Netflix, Inc. is 1.42. This metric accounts for dividend yield (0.00%), providing a more complete valuation picture.