Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Geographic Areas
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
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Current Valuation Ratios
Netflix Inc., current price multiples
| Netflix Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Trade Desk Inc. | Walt Disney Co. | Media & Entertainment | Communication Services | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | |||||||||||
| No. shares of common stock outstanding | |||||||||||
| Growth rate (g) | |||||||||||
| Earnings per share (EPS) | |||||||||||
| Next year expected EPS | |||||||||||
| Operating profit per share | |||||||||||
| Sales per share | |||||||||||
| Book value per share (BVPS) | |||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | |||||||||||
| Price to next year expected earnings | |||||||||||
| Price-earnings-growth (PEG) | |||||||||||
| Price to operating profit (P/OP) | |||||||||||
| Price to sales (P/S) | |||||||||||
| Price to book value (P/BV) | |||||||||||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Netflix Inc., historical price multiples
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 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), 10-K (reporting date: 2020-12-31).
- Price to earnings (P/E) ratio
- The ratio experienced a significant decline from 86.39 in 2020 to 33.56 in 2021, indicating a reduced market valuation relative to earnings. Following this drop, the ratio increased moderately to 36.18 in 2022 and showed a continuous upward trend thereafter, reaching 47.72 by the end of 2024. This rebound suggests a strengthening market confidence in earnings or expectations of future growth.
- Price to operating profit (P/OP) ratio
- Similar to the P/E ratio, the price to operating profit ratio fell sharply from 52.02 in 2020 to 27.71 in 2021. From this low point, it gradually increased over the subsequent years, rising to 39.91 in 2024. The trend implies an improving valuation relative to operating profitability over the latter years, signaling optimism about operational performance or profitability outlook.
- Price to sales (P/S) ratio
- The ratio showed a downward trajectory from 9.54 in 2020 to 5.14 in 2022, indicating a decreased market valuation relative to sales during this period. However, a strong reversal occurred subsequently, with the ratio climbing sharply to 10.66 in 2024, surpassing the initial 2020 level. This pattern may reflect growing investor expectations for revenue growth or improved sales quality in recent years.
- Price to book value (P/BV) ratio
- The P/BV ratio decreased considerably from 21.56 in 2020 to 7.82 in 2022, suggesting a reduced market valuation relative to net asset value. After 2022, the ratio increased steadily and markedly, reaching 16.80 in 2024. The upward trend indicates a recovery in market valuation relative to book value, possibly driven by improved asset efficiency or enhanced investor sentiment.
Price to Earnings (P/E)
Netflix Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
| P/E Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/E Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Netflix Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data over the five-year period reveals several noteworthy trends in share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio.
- Share Price
- The share price experienced a significant decline from US$53.86 at the end of 2020 to US$36.49 at the end of 2022, reflecting a period of downward pressure. However, in 2023 and 2024, the share price rebounded strongly, rising to US$57.04 and then sharply increasing to US$97.19 by the end of 2024. This suggests renewed investor confidence and positive market sentiment in the most recent years.
- Earnings Per Share (EPS)
- EPS displayed growth with fluctuations. It rose from US$0.62 in 2020 to a peak of US$1.15 in 2021, then declined slightly to US$1.01 in 2022. Following this dip, EPS increased steadily to US$1.25 in 2023 and then showed a substantial increase to US$2.04 in 2024. This indicates improving profitability with a particularly strong jump in the final year which may have contributed to the surge in share price.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio demonstrated a general downward trend from 86.39 in 2020 to 33.56 in 2021 and 36.18 in 2022, suggesting that the share price dropped faster than earnings or that the stock became relatively cheaper. However, the P/E ratio increased again in 2023 to 45.64 and further to 47.72 in 2024. This increase in the P/E ratio alongside rising share price and EPS indicates growing investor expectations for future earnings growth or a willingness to pay a premium for the stock's prospects.
Overall, the data illustrates a recovery phase after an initial decline in valuation and profitability, culminating in strong financial performance and investor optimism by the end of 2024. The simultaneous rise in share price, EPS, and P/E ratios underscores an enhancing growth outlook and improved market perception in the most recent years observed.
Price to Operating Profit (P/OP)
Netflix Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in thousands) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
| P/OP Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/OP Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Netflix Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
Over the analyzed period, the share price exhibited notable fluctuations, initially declining from 53.86 US dollars at the end of 2020 to a low of 36.49 US dollars by the end of 2022. However, a subsequent recovery is evident, with the share price rising sharply to 57.04 US dollars in 2023 and further increasing to 97.19 US dollars by the end of 2024. This trend suggests a regained investor confidence or improved market sentiment in the latter years.
The operating profit per share (OPPS) demonstrated consistent growth throughout the period. Starting at 1.04 US dollars in 2020, it increased to 1.4 US dollars in 2021 before a slight dip to 1.26 US dollars in 2022. The growth resumed strongly thereafter, reaching 1.61 US dollars in 2023 and significantly advancing to 2.44 US dollars by the end of 2024. This trend indicates improving operational performance, suggesting effective cost management or revenue enhancement strategies.
The price to operating profit (P/OP) ratio showed variability aligned with changes in share price and operating profit per share. Initially, it improved markedly, decreasing from a high of 52.02 in 2020 to a range near 28 in 2021 and 2022, implying a more attractive valuation relative to operating profit. Yet, from 2023 onwards, the P/OP ratio increased progressively to 35.5 in 2023 and 39.91 in 2024, indicating that the market price rose at a faster pace than operating profit per share during this timeframe. This may reflect heightened market expectations or increased investor optimism beyond what the immediate profit growth would justify.
Overall, the data reveals a company that experienced an initial period of declining market valuation despite improvement in profitability, followed by significant share price appreciation and steady profit growth. The rising P/OP ratio in the latest years points to elevated investor confidence or potential expectations for continued strong future performance.
Price to Sales (P/S)
Netflix Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in thousands) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
| P/S Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/S Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Netflix Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period ending December 31, 2024.
- Share Price
- The share price exhibited a decline from $53.86 in 2020 to a low point of $36.49 in 2022. Subsequently, there was a notable recovery, with the share price increasing to $57.04 in 2023 and then sharply rising to $97.19 by the end of 2024. This suggests a turnaround in market sentiment or company performance after 2022.
- Sales per Share
- There is a consistent upward trend in sales per share over the entire period. Starting at $5.64 in 2020, the sales per share grew steadily each year, reaching $9.12 in 2024. This continuous increase indicates improving revenue generation efficiency on a per-share basis.
- Price-to-Sales (P/S) Ratio
- The P/S ratio shows a variable pattern. It declined substantially from 9.54 in 2020 to 5.14 in 2022, reflecting possibly lower market valuation relative to sales during this period. Thereafter, it rebounded to 7.32 in 2023 and surged further to 10.66 in 2024. The increase beyond the initial 2020 level could imply enhanced market expectations for future growth or profitability relative to sales.
Overall, the data suggests that the company experienced initial challenges as evidenced by declining share price and valuation multiples up to 2022, despite steadily increasing sales per share. Following 2022, there was a significant improvement in both market valuation and share price, accompanied by ongoing revenue growth. This pattern may indicate strengthened financial health and investor confidence in recent years.
Price to Book Value (P/BV)
Netflix Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
| P/BV Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/BV Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Netflix Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The financial data indicates several notable trends over the five-year period from 2020 to 2024.
- Share Price
- The share price shows a decline from 53.86 US dollars in 2020 to a low of 36.49 US dollars in 2022. Following this decline, the share price experiences a significant recovery and growth, rising to 57.04 US dollars in 2023 and further increasing sharply to 97.19 US dollars by the end of 2024. This pattern suggests a period of initial market challenges followed by a strong resurgence in market valuation.
- Book Value Per Share (BVPS)
- The book value per share demonstrates a consistent upward trajectory throughout the entire period, growing steadily from 2.5 US dollars in 2020 to 5.78 US dollars in 2024. This increase reflects an improvement in the company's net asset value on a per-share basis, suggesting ongoing value creation and strengthening of the company’s financial position.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio starts very high at 21.56 in 2020, indicating that the market price was significantly above the book value per share at that time. It decreases sharply in 2021 and 2022, reaching a low of 7.82, consistent with the decline in share price relative to book value. Subsequently, the ratio increases again in 2023 to 11.99 and rises further to 16.8 in 2024. This rebound in P/BV suggests renewed investor confidence, as the share price appreciates at a faster rate than the growth in book value.
Overall, the data indicates an initial period of market pessimism or valuation pressure, followed by sustained asset growth and a subsequent bullish reversal in share price, translating to improved market valuation multiples. This pattern may reflect shifting investor sentiment, better financial performance, or successful strategic initiatives driving valuation recovery and expansion.