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Netflix Inc. — Beer Score

NFLX · US Equity · Tech — Streaming
$980.00
Market Price (indicative) · Feb 8, 2026
↓ Price vs intrinsic
Reference price only. Not an official exchange feed.
46
/ 100
Getting Foamy — Est. 54% Speculation
Updated: Feb 8, 2026 16:30 UTC · Filing: 10-K (Jan 2026) · Model: DCF v1.0
Not investment advice · Model-based estimate
Estimated Value (Beer)
$450.00
46%
Est. Speculation Premium (Foam)
$530.00
54%
🍺 46% Est. Fundamental Value 🫧 54% Est. Speculation
Track Score Alerts (Pro) See Model Assumptions ↓

Key Financials

TTM
Revenue$39B
Net Income$7.5B
Free Cash Flow$6.9B
P/E Ratio52.0x
EPS (TTM)$18.80
Market Cap$430B
Total Debt$14B
Cash & Equiv.$7B

DCF Valuation

Model Estimate
$450
Est. intrinsic value (DCF model)
vs $980 market price
Our model suggests the current price is ~118% above the estimated intrinsic value. The market may be pricing in growth beyond current fundamentals.
WACC10.0%
Growth Rate (5yr)12%
Terminal Growth3%
Margin of Safety-118%

Model output varies with assumptions (WACC, growth, margins). This is not a price target or investment recommendation.

Score History — 90 Days

Pro
90d Low
38
90d High
58
Zone Changes
3

Netflix Inc. Stock Valuation Analysis — Beer Score Breakdown

Netflix Inc.'s Beer Score of 46 means that, according to our DCF model, less than half of its current $980 stock price is supported by the company's existing fundamentals — revenue, earnings, free cash flow, and assets. The remaining 54% represents an estimated premium the market places on future growth expectations.

Investors buying at this level are betting that future earnings will grow fast enough to close the gap between price and our model estimated intrinsic value.

How Beer Score Is Calculated for NFLX

We pull Netflix Inc.'s latest 10-K and 10-Q filings from SEC EDGAR, run a DCF analysis using a 10.0% WACC and 12% revenue growth rate over 5 years with 3% terminal growth, then compare the resulting model estimate ($450) against the current market price ($980). The Beer Score of 46 represents the ratio: $450 ÷ $980 = 46%. Model output varies with assumptions. Learn more about our methodology →

Important Information

Beer Score is an educational indicator, not investment advice. It measures the model-estimated gap between a stock's current market price and an estimated intrinsic value derived from public financial data. A low Beer Score does not mean "sell" and a high score does not mean "buy." Past Beer Score patterns do not predict future price movements. Model output varies with assumptions (WACC, growth rate, terminal growth, margins).

Prices shown are indicative reference prices for educational purposes only and are not sourced from an official exchange feed. Data sources include SEC EDGAR filings (10-K and 10-Q), indicative market price data, and proprietary DCF models. Scores update daily after market close. For the full ranking of all stocks, visit the Beer Score Heatmap or read Today's Foam Report.

Track NFLX's Beer Score Over Time

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About This Valuation

Why does Netflix Inc. have a Beer Score of 100?
Netflix Inc. (NFLX) scores 100 because the stock is currently trading approximately 485% below its estimated intrinsic value of $450. With $6.9B in annual free cash flow and $39B in revenue, the company's fundamentals more than support the current market price of $76.87 per share. The Beer Score reflects that 100% of the price is backed by estimated fundamental value.
Is NFLX overvalued or undervalued?
Based on our DCF model, Netflix Inc. appears undervalued. The estimated intrinsic value of $450 compared to the current price of $76.87 suggests a meaningful margin of safety. This is a model-based estimate using 10.0% WACC and 12% projected growth — not a buy or sell recommendation. The actual fair value depends on assumptions that may change with new earnings data or market conditions.
What assumptions drive the $450 intrinsic value?
The DCF model uses a 10.0% weighted average cost of capital and projects 12% annual revenue growth over five years. Terminal growth is set at 3%. Starting from $6.9B in current free cash flow, these assumptions produce an estimated intrinsic value of $450 per share. The model is most sensitive to the growth rate and WACC inputs — small changes in either significantly alter the output.
What could change Netflix Inc.'s Beer Score?
Netflix scores 100 because the current price sits well below intrinsic value, suggesting the market undervalues its content moat. The ad-supported tier is expanding monetization without raising churn. However, content cost inflation and increasing competition from bundled streaming services could pressure margins. Password-sharing crackdown gains may normalize, requiring new growth levers.

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