Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Netflix Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial information reveals a consistent upward trend in earnings metrics over the five-year period. Net income, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) all demonstrate growth from 2021 to 2025. However, the rate of growth varies across these metrics, with EBITDA exhibiting the most substantial and consistent increase.
- EBITDA Trend
- EBITDA increased steadily from US$19,044,502 thousand in 2021 to US$30,254,617 thousand in 2025. This represents a cumulative growth of approximately 58.9% over the five-year period. The year-over-year growth rates were positive each year, indicating a robust and sustained improvement in operational profitability before considering non-cash expenses like depreciation and amortization.
- Relationship between EBITDA and Other Earnings Metrics
- EBITDA consistently remained significantly higher than EBT, EBIT, and Net Income throughout the period. This difference is attributable to the addition of depreciation, amortization, interest, and tax expenses to arrive at these lower earnings figures. The gap between EBITDA and these other metrics remained relatively stable in proportion, suggesting consistent cost structures related to these items.
- Growth Rate Comparison
- While all earnings metrics increased, EBITDA demonstrated the highest absolute growth in US$ terms. Net income grew from US$5,116,228 thousand to US$10,981,201 thousand, a growth of approximately 114.5%. EBT increased from US$5,840,103 thousand to US$12,722,552 thousand, a growth of approximately 117.8%. EBIT increased from US$6,605,723 thousand to US$13,499,062 thousand, a growth of approximately 104.4%. These growth rates, while positive, were lower than the percentage increase observed in EBITDA.
The consistent growth in EBITDA suggests improving operational efficiency and profitability. The increasing trend across all earnings metrics indicates a generally positive financial performance over the analyzed period. The substantial growth in EBITDA, relative to other earnings figures, highlights the company’s ability to generate cash flow from its core operations before accounting for capital expenditures and financing costs.
Enterprise Value to EBITDA Ratio, Current
Netflix Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 342,920,130) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 30,254,617) |
| Valuation Ratio | |
| EV/EBITDA | 11.33 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 29.78 |
| Comcast Corp. | 5.34 |
| Meta Platforms Inc. | 16.35 |
| Trade Desk Inc. | 18.82 |
| Walt Disney Co. | 11.80 |
| EV/EBITDA, Sector | |
| Media & Entertainment | 21.62 |
| EV/EBITDA, Industry | |
| Communication Services | 17.63 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Netflix Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 369,013,081) | 421,736,190) | 254,251,442) | 170,801,663) | 181,045,624) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 30,254,617) | 26,314,821) | 21,459,615) | 20,332,955) | 19,044,502) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 12.20 | 16.03 | 11.85 | 8.40 | 9.51 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | — | 16.81 | 17.01 | 14.66 | 18.08 | |
| Comcast Corp. | — | 5.84 | 7.10 | 9.60 | 8.45 | |
| Meta Platforms Inc. | 17.46 | 19.48 | 19.72 | 12.19 | 10.85 | |
| Trade Desk Inc. | — | 56.73 | 101.80 | 167.34 | 231.53 | |
| Walt Disney Co. | 12.19 | 16.57 | 17.34 | 17.80 | 34.53 | |
| EV/EBITDA, Sector | ||||||
| Media & Entertainment | — | 16.21 | 15.70 | 13.07 | 14.78 | |
| EV/EBITDA, Industry | ||||||
| Communication Services | — | 13.81 | 13.01 | 11.85 | 11.67 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 369,013,081 ÷ 30,254,617 = 12.20
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited fluctuating behavior over the five-year period. Initial observation reveals a decrease followed by an increase and subsequent moderation.
- Enterprise Value to EBITDA Trend
- The ratio began at 9.51 in 2021, decreasing to 8.40 in 2022. This suggests a relative improvement in valuation compared to earnings generation during this period. However, the ratio increased significantly to 11.85 in 2023, indicating a less favorable valuation. This upward trend continued into 2024, reaching a peak of 16.03, signifying a substantial increase in enterprise value relative to EBITDA. Finally, the ratio moderated to 12.20 in 2025, representing a decrease from the prior year but remaining elevated compared to earlier years.
Enterprise Value demonstrated an initial decline from 2021 to 2022, followed by substantial growth in 2023 and 2024, before decreasing in 2025. EBITDA consistently increased throughout the period, though the rate of increase varied. The combined effect of these trends explains the observed fluctuations in the EV/EBITDA ratio.
- Enterprise Value
- Enterprise Value decreased from US$181,045,624 thousand in 2021 to US$170,801,663 thousand in 2022. A significant increase was then observed, reaching US$254,251,442 thousand in 2023 and further growing to US$421,736,190 thousand in 2024. In 2025, Enterprise Value decreased to US$369,013,081 thousand.
- EBITDA
- EBITDA showed a consistent upward trend, increasing from US$19,044,502 thousand in 2021 to US$20,332,955 thousand in 2022. This growth continued, reaching US$21,459,615 thousand in 2023, US$26,314,821 thousand in 2024, and US$30,254,617 thousand in 2025.
The substantial increase in the EV/EBITDA ratio in 2023 and 2024, despite continued EBITDA growth, suggests that market expectations regarding future performance or a change in risk perception significantly impacted the enterprise value during those years. The subsequent moderation in 2025 indicates a potential recalibration of these expectations.