Netflix, Inc. EV/EBITDA
Data as of June 01, 2026
EV/EBITDA
25.67
Enterprise Value
$366.84B
EBITDA (TTM)
$14.29B
Sector
Communication Services
How It's Calculated
25.67 = $366.84B ÷ $14.29B
What This Means
Netflix, Inc.'s EV/EBITDA of 25.7 is elevated, which can reflect growth expectations, scarce assets, or cyclical EBITDA.
About Netflix, Inc.
Netflix, Inc. (NFLX) operates in the Communication Services sector, specifically in Entertainment. With a market capitalization of about $362.21B, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $86.02, within a 52-week range of $75.01 to $134.12 (-35.9% from the high, +14.7% from the low). Beta of 1.55 suggests the stock has been more volatile than the broader market.
Trailing profit margin is about 28.5%, signaling a strong profit margin relative to many peers.
Understanding This Metric
EV/EBITDA is widely used when comparing companies with different debt loads because enterprise value includes net debt while EBITDA approximates operating cash earnings power. For Netflix, Inc., the ratio should be read with growth, capex needs, and cycle position in Communication Services. Pair EV/EBITDA with free cash flow yield and net debt metrics before drawing conclusions — especially when EBITDA is depressed or boosted by one-time items.
Using This Number in Practice
Near 25.67x EV/EBITDA, Netflix, Inc. (NFLX) carries an elevated EV/EBITDA multiple that may embed growth expectations or scarcity within its peer set. Enterprise value of about $366.84B and EBITDA near $14.29B form the ratio — adjust for one-time items before treating the headline multiple as comparable.
Credit and LBO workflows often sort names on EV/EBITDA before drilling into free cash flow and maintenance capex. Pair this view with the EV/EBITDA calculator and the NFLX metrics hub for related valuation pages.
Sector Comparison
Among Communication Services names on our S&P 100 coverage, Netflix, Inc.'s EV/EBITDA of 25.67 can be compared with peers such as GOOGL (28.37), GOOG (28.08), META (14.74). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Communication Services stocks.
Key Takeaways
- NFLX is grouped in the Communication Services sector for peer comparisons.
- Recent beta of 1.55 suggests higher-than-market price sensitivity.
- Trailing profit margin of 28.5% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for NFLX.
Other NFLX Metrics
Frequently Asked Questions
What is NFLX's EV/EBITDA?
EV/EBITDA compares enterprise value to operating earnings before interest, taxes, depreciation, and amortization. Netflix, Inc.'s ratio is about 25.67 — common for comparing leveraged companies in Communication Services.
Is 25.67 high or low vs peers?
Among Communication Services peers (e.g. GOOGL (28.37), GOOG (28.08), META (14.74)), NFLX's 25.67 should be read with growth, capex, and debt levels.
When is EV/EBITDA misleading?
EBITDA ignores capex, working capital, and stock-based comp; negative or tiny EBITDA makes the ratio meaningless. Cross-check with free cash flow and net debt.
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