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Netflix, Inc is an entertainment business with stocks listed in the US. Netflix shares (NFLX) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was US$530.79 – a decrease of 1.6% over the previous week. Here's how to invest if you're based in Australia.
How to buy shares in Netflix
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Netflix. Find the share by name or ticker symbol: NFLX. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Netflix reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$530.79, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Netflix, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Netflix. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Netflix key stats
- Compare share trading platforms
- Is Netflix stock a buy or sell?
- Netflix performance over time
- Can I short Netflix shares?
- Is Netflix suitable for ethical investing?
- Are Netflix shares over-valued?
- Netflix's financials
- How volatile are Netflix shares?
- Does Netflix pay a dividend?
- Have Netflix shares ever split?
- Other common questions
Netflix share priceUse our graph to track the performance of NFLX stocks over time.
Netflix shares at a glance
|52-week range||US$290.25 - US$572.49|
|50-day moving average||US$511.25|
|200-day moving average||US$501.885|
|Dividend yield||N/A (0%)|
|Earnings per share (TTM)||US$6.192|
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Is it a good time to buy Netflix stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Netflix price performance over time
|1 week (2021-01-13)||4.53%|
|1 month (2020-12-18)||-0.68%|
|3 months (2020-10-20)||1.02%|
|6 months (2020-07-20)||5.65%|
|1 year (2020-01-17)||56.27%|
|2 years (2019-01-18)||56.53%|
|3 years (2018-01-19)||140.76%|
|5 years (2016-01-20)||392.66%|
Is Netflix under- or over-valued?
Valuing Netflix stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Netflix's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Netflix's P/E ratio
Netflix's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 80x. In other words, Netflix shares trade at around 80x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Netflix's PEG ratio
Netflix's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.1667. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Netflix's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Netflix's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$4.2 billion (£3.1 billion).
The EBITDA is a measure of a Netflix's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$23.8 billion|
|Operating margin TTM||17.17%|
|Gross profit TTM||US$7.7 billion|
|Return on assets TTM||7.35%|
|Return on equity TTM||32.64%|
|Market capitalisation||US$218.4 billion|
TTM: trailing 12 months
Shorting Netflix shares
There are currently 8.3 million Netflix shares held short by investors – that's known as Netflix's "short interest". This figure is 7.2% down from 8.9 million last month.
There are a few different ways that this level of interest in shorting Netflix shares can be evaluated.
Netflix's "short interest ratio" (SIR)
Netflix's "short interest ratio" (SIR) is the quantity of Netflix shares currently shorted divided by the average quantity of Netflix shares traded daily (recently around 3.8 million). Netflix's SIR currently stands at 2.19. In other words for every 100,000 Netflix shares traded daily on the market, roughly 2190 shares are currently held short.
However Netflix's short interest can also be evaluated against the total number of Netflix shares, or, against the total number of tradable Netflix shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Netflix's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Netflix shares in existence, roughly 20 shares are currently held short) or 0.0192% of the tradable shares (for every 100,000 tradable Netflix shares, roughly 19 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Netflix.
Find out more about how you can short Netflix stock.
Netflix's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Netflix.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Netflix's total ESG risk score
Total ESG risk: 21.55
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Netflix's overall score of 21.55 (as at 01/01/2019) is excellent – landing it in it in the 19th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Netflix is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Netflix's environmental score
Environmental score: 3.16/100
Netflix's environmental score of 3.16 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Netflix is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Netflix's social score
Social score: 10.56/100
Netflix's social score of 10.56 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Netflix is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Netflix's governance score
Governance score: 15.32/100
Netflix's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that Netflix is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Netflix's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Netflix scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Netflix has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||21.55|
|Total ESG percentile||19.25|
|Environmental score percentile||6|
|Social score percentile||6|
|Governance score percentile||6|
|Level of controversy||2|
Netflix share dividends
We're not expecting Netflix to pay a dividend over the next 12 months.
Have Netflix's shares ever split?
Netflix's shares were split on a 7:1 basis on 15 July 2015. So if you had owned 1 share the day before before the split, the next day you'd have owned 7 shares. This wouldn't directly have changed the overall worth of your Netflix shares – just the quantity. However, indirectly, the new 85.7% lower share price could have impacted the market appetite for Netflix shares which in turn could have impacted Netflix's share price.
Netflix share price volatility
Over the last 12 months, Netflix's shares have ranged in value from as little as US$290.25 up to US$572.49. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Netflix's is 0.9244. This would suggest that Netflix's shares are less volatile than average (for this exchange).
Netflix, Inc. provides subscription streaming entertainment service. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. The company has approximately 195 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.
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