NFLX
NFLX — Communication Services
Graham: 25
Buffett: 92
Lynch: 81
Netflix, Inc. provides entertainment services. The company offers television (TV) series, documentaries, feature films, and games across various genres and languages.
Price ?
1112.61
Market Cap ?
472.8B
P/E ?
46.57
P/B ?
18.20
Div Yield ?
-
52W Range ?
746.25 - 1341.15
200W MA ?
590.69
25
Graham-style buying rate (0-100)
Criteria breakdown
- ✓ Company size sufficient (large-cap) ? $472,779,423,744 — Uses market cap >= $2B as proxy
- ✗ Solid financial condition (CR>=2; LT debt <= NCAV) ? CR=1.33 | D/E=0.68 — Partial: checks current ratio; LT debt vs NCAV unavailable
- ? Uninterrupted dividends for 20 years ? — Data not available
- ✓ No losses in last 10 years ? 10y window — Positive earnings for last 16y
- ✓ EPS growth >= 33% over 10 years ? ~19730%
- ✗ Price-to-Book (P/B) <= 1.5 ? 18.20
- ✗ Price-to-Earnings (P/E) <= 15 ? 46.6 — Uses trailing P/E as proxy for 3y avg EPS
- ✗ Combined formula (P/E * P/B) <= 22.5 ? 847.4
- ✗ Margin of safety >= 20% ? -274% — Intrinsic = EPS * 15
- ✓ High ROE maintained without excessive debt ? ROE=42.9% | D/E=0.68 — Approximate threshold ROE = 15%, D/E = 1.0
What is evaluated (Graham):
- Valuation discipline and buying below intrinsic value.
- Financial resilience: liquidity and prudent leverage.
- Consistent dividends and earnings over long horizons.
"The intelligent investor is a realist who sells to optimists and buys from pessimists." — Benjamin Graham
92
Buffett-style buying rate (0-100)
Criteria breakdown
- ✓ Positive and growing FCF (multi-year) ? 7,622,853,000 -> 7,800,902,000
- ✓ ROIC >= 12% sustained ? 52.8%
- ✓ High ROE (proxy for durable advantages) ? 42.9% — Consistency over years not checked
- ✓ Net profit margin >= 10% ? 24.0% — Derived from available financial filings
- ✓ Conservative leverage (D/E <= 1.0) ? 0.68
- ? Sustainable shareholder returns (dividend > 0%) ? — Does not assess buybacks or payout safety
What is evaluated (Buffett):
- Durable advantages: high ROE, healthy margins.
- Balance discipline and shareholder friendly capital use.
- Positive free cash flow and efficient reinvestment.
"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett
81
Lynch-style buying rate (0-100)
Criteria breakdown
- ✓ PEG ratio (P/E / growth) <= 1.0 ? 0.46
- ✓ Positive multi-year EPS growth (per-year >= 10%) ? ~102.0%/yr
- ✗ Conservative leverage (D/E <= 0.5) ? 0.68
- ✓ Sustainable profitability (net margin >= 5%) ? 24.0%
- ✓ Earnings stability (no losses in 10y) ? 10y window
What is evaluated (Lynch):
- Growth at a reasonable price (PEG and EPS CAGR).
- Durable earnings with limited drawdowns.
- Conservative balance sheet and baseline profitability.
"Know what you own, and know why you own it." — Peter Lynch