Price to FCFE (P/FCFE)
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Current Ratio since 2005
- Analysis of Debt
- Aggregate Accruals
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Free Cash Flow to Equity (FCFE)
Netflix Inc., FCFE 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).
A significant improvement in free cash flow to equity (FCFE) is observed over the analyzed period. Net cash provided by operating activities also demonstrates a substantial upward trend, contributing to the positive shift in FCFE.
- Net Cash from Operations
- Net cash provided by operating activities increased dramatically from US$392.61 million in 2021 to US$2,026.26 million in 2022. This growth continued through 2023 and 2024, reaching US$7.27 billion and US$7.36 billion respectively. Further growth is apparent in 2025, with net cash from operations reaching US$10.15 billion. This indicates a strengthening ability to generate cash from core business activities.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced a substantial turnaround. A negative value of US$631.98 million was recorded in 2021, but it became positive in 2022, reaching US$918.53 million. Subsequent years show continued expansion, with FCFE reaching US$6.93 billion in 2023 and peaking at US$8.32 billion in 2024. While still positive, FCFE decreased slightly in 2025 to US$7.63 billion. This overall trend suggests an increasing capacity to distribute cash to equity holders after covering operational expenses and investments.
The correlation between the increase in net cash from operating activities and the improvement in FCFE is strong. The substantial growth in operating cash flow directly supports the positive trend in cash available to equity holders. The slight decrease in FCFE in 2025, despite continued growth in operating cash flow, warrants further investigation to determine the underlying factors contributing to this change.
Price to FCFE Ratio, Current
Netflix Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | |
| Comcast Corp. | |
| Meta Platforms Inc. | |
| Trade Desk Inc. | |
| Walt Disney Co. | |
| P/FCFE, Sector | |
| Media & Entertainment | |
| P/FCFE, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Netflix Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
| P/FCFE, Sector | ||||||
| Media & Entertainment | ||||||
| P/FCFE, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Netflix Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits significant fluctuation over the observed period. Initially, the ratio is unavailable for the 2021 fiscal year. However, a substantial value of 176.92 is recorded for 2022, followed by a marked decrease in subsequent years.
- P/FCFE Trend
- The P/FCFE ratio declines considerably from 176.92 in 2022 to 35.64 in 2023. This decrease suggests a potential shift in investor valuation relative to the free cash flow available to equity holders. The ratio then experiences a moderate increase to 49.99 in 2024 before settling at 47.67 in 2025.
The Free Cash Flow to Equity per share demonstrates a transition from negative values to positive growth. A negative value of -0.14 US$ is recorded in 2021, increasing to 0.21 US$ in 2022. Subsequent years show continued positive growth, peaking at 1.60 US$ in 2023, followed by 1.94 US$ in 2024 and a slight decrease to 1.81 US$ in 2025.
- Share Price and P/FCFE Relationship
- The share price shows an initial decline from 38.67 US$ in 2021 to 36.49 US$ in 2022. A significant increase is then observed, reaching 57.04 US$ in 2023 and further escalating to 97.19 US$ in 2024. The share price experiences a modest decrease to 86.12 US$ in 2025. The decreasing P/FCFE ratio from 2022 to 2023, coupled with the increasing share price, suggests that market expectations regarding future cash flow generation may have been adjusting during that period.
The combined trends indicate that while free cash flow to equity per share has been increasing, the market valuation, as reflected in the P/FCFE ratio, has stabilized in the later years of the period. The high P/FCFE in 2022, followed by its subsequent decline, warrants further investigation into the factors influencing investor sentiment and valuation multiples.