Netflix (NFLX): A Great Company Trading at Near Fair Valuation with Strong Growth Projections

As most people know, Netflix is a giant in the media and entertainment services.  It has been around for more than 20 years and continues to take the S&P 500 to school for performance.  As of this writing, I feel that it is a great company trading at near fair valuation with continued strong growth projections (EPS gains of >20% annually).  


In the image above, as of November 18, 2025, we can see the black price line is trading below the orange fair valuation line for the 15-year historical chart.  We can conclude that NFLX is actually near to slightly below fair valuation presently.  The earnings per share growth is greater than 20% for at least the next few years.  Therefore, those who are currently holding NFLX shares can probably feel pretty comfortable holding or adding to their positions.  And for those who do not own shares presently, this is an opportunity to add a position.  


Since about 2019 (image above), NFLX has shown a tendency for increasing operating cash flow which is very desirable. It generally means a company can fund it's core activities without needing external funding (loans).  


For the 13 year performance period from 12/31/2012 through 11/18/2025, NFLX stock has given the S&P 500 a super-sized learning sandwich, with a $10,000 initial investment now worth $862,550 versus the S&P 500 ($58,150).  NFLX may not be in the Magnificent 7 list, however it has certainly made many people wealthy over the past 15 years or more.  I bought some initial shares on November 17, 2025 and I am up +4% thus far.  May my performance continue in the green.  

Best wishes to all investors!

References: 

Disclaimer: This blog has been created for sharing my personal investment ideas only. I do not receive any compensation for this blog or the content within. I am not an investment advisor or professional. This blog is my own personal opinion and is not meant to be a recommendation of the purchase or sale of any stock or ETF. Please do your own due diligence and research before deciding to purchase any investments of your own.

  


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