What is Netflix's current P/E ratio?

Netflix's P/E ratio is approximately 22x, which is below the sector average.

Is Netflix stock a buy now?

No buy or sell recommendation can be given, but the low valuation may attract long-term investors if fundamentals improve.

What are the main challenges facing Netflix?

Challenges include slowing subscriber growth, rising content costs, and fierce competition from Disney+, Amazon Prime, and others.

Netflix Plunges 50% in a Year, Drops Again on Earnings: Is the Stock a Buy?

Netflix (NFLX) shares have plummeted more than 50% over the past year and declined again following its Q4 earnings release. Despite solid quarterly results, the stock trades at 22 times earnings, raising questions about whether it's a buy.

July 21, 2026

2 min read

Source: Motley Fool

Key Numbers

pe ratio

22x

stock decline year

over 50%

According to a report from Motley Fool, Netflix (NFLX) reported solid quarterly results for Q4 2025, but the stock continued its sharp decline, down over 50% in the past year. The current P/E ratio stands at 22x, making it cheaper relative to peers.

Key Financial Results

Metric	Value
Revenue	Not disclosed
Net Income	Not disclosed
EPS	Not disclosed
P/E Ratio	22x

Highlights from the Report

The company described its quarterly performance as "solid," but did not provide specific figures. The focus remains on slowing subscriber growth and rising competition.

Future Guidance

Netflix did not issue formal guidance for the next quarter, but analysts expect continued competitive pressures.

Impact on the Stock

The stock has fallen over 50% in 12 months, reflecting investor concerns about market saturation and rising content costs.

What This Means for Investors

Despite the relatively low valuation (22x earnings), there is no buy or sell recommendation. Investors should monitor subscriber growth and free cash flow before making a decision.

Frequently Asked Questions

The decline is due to investor concerns over slowing subscriber growth and increased competition in the streaming market.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.