Netflix, Inc. PEG Ratio
Data as of June 01, 2026
PEG Ratio
1.69
PE Ratio (TTM)
27.75
EPS (TTM)
$3.10
Sector
Communication Services
How It's Calculated
1.69 = 27.75 ÷ Growth Rate
What This Means
Netflix, Inc.'s PEG ratio of 1.69 is in the fairly valued range. The stock's PE ratio is roughly in line with its expected earnings growth rate.
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
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Netflix, Inc., a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Communication Services names on our S&P 100 coverage, Netflix, Inc.'s PEG ratio of 1.69 can be compared with peers such as GOOGL (1.50), GOOG (1.48), META (0.91). 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 PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. Netflix, Inc.'s PEG of 1.69 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (1.69) may mean the market prices in high growth — or that growth estimates lag reality.
What are limitations of PEG for NFLX?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Communication Services peers — not as a standalone verdict.
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