Using the PEG framework with analyst consensus forward EPS growth of 18.7%, Netflix, Inc. has a fair value of $58.89 based on NTM EPS (FY2026) of $3.15. The current PEG ratio is 1.59.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 18.7% |
| Adjusted Growth (clamped 8–25%) | 18.7% |
| Fair P/E | 18.7x |
| NTM EPS (FY2026) | $3.15 |
| Fair Value | $58.89 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.53 | — | — |
| FY2026E | $3.15 | +24.6% | 36 |
| FY2027E | $3.82 | +21.3% | 34 |
| FY2028E | $4.53 | +18.6% | 28 |
| FY2029E | $5.16 | +13.8% | 23 |
| FY2030E | $5.96 | +15.4% | 27 |
5Y Forward EPS CAGR: 18.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $5.1B | $1.12 | — |
| FY2022 | $4.5B | $1.00 | -10.7% |
| FY2023 | $5.4B | $1.20 | +20.0% |
| FY2024 | $8.7B | $1.98 | +65.0% |
| FY2025 | $11.0B | $2.53 | +27.8% |
4Y Historical EPS CAGR: 22.6%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.