How to buy Netflix shares | $482.88

With social distancing policies in place due to the coronavirus pandemic, Netflix has become one of the remaining sources of entertainment left for millions of people around the world. Investors looking to find value in the stock market may see the current situation as a good time to buy shares in Netflix. Netflix, Inc (NASDAQ: NFLX) is an American media production and streaming company based in California. It is available in over 190 countries, and has over 150 million subscribers worldwide.

How to buy shares in Netflix

1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
2. Open your account. You'll need your ID, bank details and national insurance number.
3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
4. Search the platform for stock code: NFLX in this case.
5. Research Netflix shares. The platform should provide the latest information available.
6. Buy your Netflix shares. It's that simple.

Netflix share price

Use our graph to track the performance of NFLX stocks over time.

Netflix shares at a glance

• Live prices
• Key figures

Information last updated 2020-09-25.

Open	$474.39
High	$484.87
Low	$468.05
Close	$482.88
Previous close	$473.08
Change	$9.8
Change %	2.072%
Volume	3,581,685

Information last updated 2020-09-24.

52-week range	$257.01 - $557.39
50-day moving average	$497.6517
200-day moving average	$446.5038
Wall St. target price	$518.76
PE ratio	79.4949
Dividend yield	N/A (0%)
Earnings per share (TTM)	$5.922

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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

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.

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 79x. In other words, Netflix shares trade at around 79x 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.

However, Netflix's P/E ratio is best considered in relation to those of others within the entertainment industry or those of similar companies.

• The Walt Disney Company (DIS.US): 51.22
• Amazon-com (AMZN.US): 115.29
• ITV (ITV.LSE): 8.90
• Comcast Corporation (CMCSA.US): 18.31

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 2.0494. 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.

However, it's sensible to consider Netflix's PEG ratio in relation to those of similar companies.

• The Walt Disney Company (DIS.US): 13.24
• Amazon-com (AMZN.US): 1.18
• ITV (ITV.LSE): 0.90
• Comcast Corporation (CMCSA.US): 1.30

Netflix's EBITDA

Netflix's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $3.9 billion.

The EBITDA is a measure of a Netflix's overall financial performance and is widely used to measure a its profitability.

To put Netflix's EBITDA into context you can compare it against that of similar companies.

• The Walt Disney Company (DIS.US): USD$11.9 billion
• Amazon-com (AMZN.US): USD$39.6 billion
• ITV (ITV.LSE): £551 million
• Comcast Corporation (CMCSA.US): USD$33 billion

Netflix financials

Revenue TTM	$22.6 billion
Operating margin TTM	16.59%
Gross profit TTM	$7.7 billion
Return on assets TTM	6.97%
Return on equity TTM	34.73%
Profit margin	11.85%
Book value	$21.166
Market capitalisation	$207.5 billion

TTM: trailing 12 months

How to short and sell Netflix shares

1. Create a CFD or spread betting account.
2. Search for the stock code. E.g. "NFLX.US"
3. Choose your position size.
4. Select "sell" rather than "buy".
5. Confirm your position and keep tabs on it. You may wish to set limits on your position.

There are currently 9.9 million Netflix shares held short by investors – that's known as Netflix's "short interest". This figure is 2.5% up from 9.6 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 5.5 million). Netflix's SIR currently stands at 1.78. In other words for every 100,000 Netflix shares traded daily on the market, roughly 1780 shares are currently held short.

To gain some more context, you can compare Netflix's short interest ratio against those of similar companies.

• The Walt Disney Company (DIS.US): 1.82
• Amazon-com (AMZN.US): 0.49
• Comcast Corporation (CMCSA.US): 5.51

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 0.0229% of the tradable shares (for every 100,000 tradable Netflix shares, roughly 23 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: 21.45

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Netflix's overall score of 21.45 (as at 08/01/2020) is excellent – landing it in it in the 18th 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.).

To gain some more context, you can compare Netflix's total ESG risk score against those of similar companies.

• The Walt Disney Company (DIS.US): 20.28
• Amazon-com (AMZN.US): 35.83
• ITV (ITV.LSE): 11.75
• Comcast Corporation (CMCSA.US): 21.15

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: 15.22/100

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. A high-profile company, 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.

Wondering how that compares? Below are the controversy scores of similar companies.

• The Walt Disney Company (DIS.US): 2
• Amazon-com (AMZN.US): 3
• ITV (ITV.LSE): 2
• Comcast Corporation (CMCSA.US): 2

Environmental, social, and governance (ESG) summary

Netflix, Inc was last rated for ESG on: 2020-08-01.

Total ESG score	21.45
Total ESG percentile	17.84
Environmental score	3.16
Environmental score percentile	6
Social score	10.56
Social score percentile	6
Governance score	15.22
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. However, you can browse other dividend-paying shares in our guide.

You may also wish to consider:

• ITV (ITV.LSE) (14.7% forward annual dividend yield)
• Comcast Corporation (CMCSA.US) (2.03% forward annual dividend yield)

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 $257.01 up to $557.39. 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 0.9699. This would suggest that Netflix's shares are less volatile than average (for this exchange).

To put Netflix's beta into context you can compare it against those of similar companies.

• The Walt Disney Company (DIS.US): 1.0819
• Amazon-com (AMZN.US): 1.3239
• ITV (ITV.LSE): 1.4199
• Comcast Corporation (CMCSA.US): 0.9588

Netflix overview

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 167 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.

Frequently asked questions

• What percentage of Netflix is owned by insiders or institutions?

  Currently 1.622% of Netflix shares are held by insiders and 83.487% by institutions.

• How many people work for Netflix?

  Latest data suggests 8,600 work at Netflix.

• When does the fiscal year end for Netflix?

  Netflix's fiscal year ends in December.

• Where is Netflix based?

  Netflix's address is: 100 Winchester Circle, Los Gatos, CA, United States, 95032

• What is Netflix's ISIN number?

  Netflix's international securities identification number is: US64110L1061

• What is Netflix's CUSIP number?

  Netflix's Committee on Uniform Securities Identification Procedures number is: 64110L106