Netflix Inc
LSE:0QYI
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (12.8), the stock would be worth $94.52 (1% upside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 12.6 | $93.13 |
0%
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| 3-Year Average | 12.8 | $94.52 |
+1%
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| 5-Year Average | 12.5 | $92.31 |
-1%
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| Industry Average | 11.4 | $84.21 |
-10%
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| Country Average | 14.4 | $106.1 |
+14%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
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$410.8B
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/ |
Apr 2026
$31.1B
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= |
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$410.8B
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/ |
Dec 2026
$17.5B
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= |
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$410.8B
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/ |
Dec 2027
$20.9B
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= |
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$410.8B
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/ |
Dec 2028
$24.3B
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= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Netflix Inc
LSE:0QYI
|
390.8B USD | 12.6 | 29.2 | |
| US |
|
Walt Disney Co
NYSE:DIS
|
186.9B USD | 11.4 | 15.3 | |
| LU |
|
Spotify Technology SA
NYSE:SPOT
|
106.2B USD | 35.4 | 40.7 | |
| US |
|
Warner Bros Discovery Inc
NASDAQ:WBD
|
66.7B USD | 5 | 91.8 | |
| NL |
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Universal Music Group NV
AEX:UMG
|
36.5B EUR | 15.9 | 23.8 | |
| US |
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Live Nation Entertainment Inc
NYSE:LYV
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36.1B USD | 19.5 | -654.1 | |
| US |
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TKO Group Holdings Inc
NYSE:TKO
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36.1B USD | 25.6 | 157.9 | |
| US |
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Roku Inc
NASDAQ:ROKU
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17B USD | 221.3 | 192.8 | |
| FR |
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Bollore SE
PAR:BOL
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14.4B EUR | -45.6 | 41.5 | |
| US |
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Warner Music Group Corp
NASDAQ:WMG
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15.1B USD | 13.4 | 50.6 | |
| CN |
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Tencent Music Entertainment Group
NYSE:TME
|
14.3B USD | 6.9 | 8.8 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10 |
| Median | 14.4 |
| 70th Percentile | 21.5 |
| Max | 1 767 274.1 |
Other Multiples
Netflix Inc
Glance View
In the heart of Silicon Valley, amidst its rapid technological evolution, Netflix Inc. emerged from a simple DVD rental service by mail into a streaming colossus that altered the entertainment landscape. Founded in 1997 by Reed Hastings and Marc Randolph, the company's pivot to online streaming in 2007 marked the beginning of a new era. This agile transformation allowed Netflix to capitalize on the burgeoning capabilities of broadband internet, leading to their now-iconic subscription service that offers unlimited streaming of films, TV shows, and documentaries. Distinguished by its user-friendly interface and algorithm-driven recommendations, Netflix hooked audiences worldwide and accrued a massive subscriber base. Netflix's revenue model predominantly hinges on its subscription fees, which deliver a steady and predictable stream of income. These monthly fees form the backbone of its revenue, supporting the company's continued investment in not only buying rights to licensed content but more critically, producing original programming under its streaming brand. Hits like "Stranger Things" and "The Crown" have not only captivated viewers but also cemented Netflix’s reputation as a creative powerhouse in content creation. Netflix's global reach allows for content tailored to local tastes while also offering it across borders, thereby maximizing its investments. The company’s strategy of reinvesting a significant portion of its revenue into fresh content has cemented its competitive edge, driving subscriber growth and maintaining its status as a premiere streamer.
