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Netflix Inc. (NFLX) intrinsic value & 10-year financials

Netflix Inc. (NFLX) has a Graham intrinsic value of $84.04 per share. At $70.53 on Oct 17, 2026, the stock trades 16% below that value. Over the last 10 fiscal years revenue grew 19.9% a year to $45.2B, with an average return on invested capital of 19.2%.

Graham intrinsic value: $84.04
Share price (Oct 17, 2026): $70.53
Price vs Graham value: 16% below
Market cap: $306.4B
Revenue (FY2025): $45.2B
Revenue growth (10-yr CAGR): 19.9%
ROIC (10-yr avg): 19.2%
Free cash flow (FY2025): $9.5B

NFLX 10-year financial history

Fiscal year	Revenue	Net income	EPS (diluted)	Free cash flow	Operating margin	ROIC
FY2025	$45.2B	$11.0B	$2.53	$9.5B	29.5%	33.5%
FY2024	$39.0B	$8.7B	$1.98	$6.9B	26.7%	28.2%
FY2023	$33.7B	$5.4B	$1.20	$6.9B	20.6%	19.5%
FY2022	$31.6B	$4.5B	$0.99	$1.6B	17.8%	16.1%
FY2021	$29.7B	$5.1B	$1.12	-$132.0M	20.9%	22.3%
FY2020	$25.0B	$2.8B	$0.61	$1.9B	18.3%	19.9%
FY2019	$20.2B	$1.9B	$0.41	-$3.1B	12.9%	15.4%
FY2018	$15.8B	$1.2B	$0.27	-$2.9B	10.2%	16.6%
FY2017	$11.7B	$558.9M	$0.12	-$2.0B	7.2%	14.2%
FY2016	$8.8B	$186.7M	$0.04	-$1.6B	4.3%	5.9%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Netflix is a consistent compounder, expanding top-line revenue at 19.9% annually over the past decade.

Netflix has earned high returns on invested capital, averaging 19.2% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

Over the decade, Netflix shows that the company has leveraged its balance sheet to sustain operations.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Netflix is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $84.04 per share.

NFLX stock: frequently asked questions

What is the intrinsic value of Netflix Inc. (NFLX) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, NFLX's intrinsic value is about $84.04 per share.

Is NFLX stock undervalued?

At $70.53 (close on Oct 17, 2026), NFLX trades 16% below its Graham value of $84.04. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Netflix Inc. grown?

Revenue went from $8.8B in fiscal 2016 to $45.2B in fiscal 2025, a compound annual growth rate of 19.9%. Net income was $11.0B in fiscal 2025.

Does Netflix Inc. generate free cash flow?

Netflix Inc. generated $9.5B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 5 of the last 10 reported years.

What is NFLX's return on invested capital?

Average ROIC over the last 10 fiscal years was 19.2%, and average return on equity was 28.1%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this NFLX data come from?

From Netflix Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Jul 17, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.