Most Investors Think Netflix (NFLX) Is Too Expensive. I Think They're Wrong.

Netflix is argued to be undervalued despite its expensive reputation. The company is generating strong free cash flow ($11B in last 12 months), returning capital through $4.7B in quarterly buybacks, and growing revenue 13.4% YoY. New revenue streams from advertising (projected $3B in 2026) and sports rights acquisitions support future growth. At a P/E of 24, significantly lower than historical levels, the stock appears cheap relative to its growth potential.