Value Investing with Sven Carlin, Ph.D.ANALYSTJul 21, 2026“Netflix is undervalued with a P/E of 22 for double-digit growth, sticky business, strong free cash flow, and intrinsic value supporting a 10%+ return.”
Why he says it — point by point
FAVORABLE & AGAINST · BOTH KEPTWhy
But the P ratio 22 for a company still growing at double digits. This is getting interesting.
the subscription is very sticky
Still 13% growth over the year.
free cash flows are usually at 75 80% of net income
intrinsic value is 56 still a little bit below 68 for a 10% expected return
Netflix is now undervalued for a 10% return.
Risk
one hit to the net income versus free cash flow situation but that is because of taxes and what was it the Warner Bros situation
growth has slowed they're trying different things free trials and then we'll see what gets traction
intense sector competition
Absence of major content hits
The structured call
The receipt
Publish-day price $$68.67 · the claim is anchored to the moment it was said.