Skip Navigation Links
Review of Netflix (NFLX)
21 Apr 2022 (370 views)  

The price of Netflix stock dropped from $682 in Nov 2021 to $226 in Apr 2022. It is a drop of 67% over the past five months.

At the current price of $226, the PE ratio is 20.12 times. This is an acceptable ratio. 

However, at the price of $682, the PE ratio was 60.0 times. This is insanely high. 

Many US stocks have high PE ratios similar to Netflix. Some of them are still holding their price well. However, any disappointing results of events could cause the stock price to fall sharply.

It is best to avoid stocks with PE ratios above 30.0 times. There are a few exceptions, e.g. where the investor is confident that the stock can achieve high growth rates and are not challenged by competitors. 

Note - this is a personal observation. It is not investment advice. 

Tan Kin Lian


Review of Netflix (NFLX)
[Back] [Print]


The price of Netflix stock dropped from $682 in Nov 2021 to $226 in Apr 2022. It is a drop of 67% over the past five months.

At the current price of $226, the PE ratio is 20.12 times. This is an acceptable ratio. 

However, at the price of $682, the PE ratio was 60.0 times. This is insanely high. 

Many US stocks have high PE ratios similar to Netflix. Some of them are still holding their price well. However, any disappointing results of events could cause the stock price to fall sharply.

It is best to avoid stocks with PE ratios above 30.0 times. There are a few exceptions, e.g. where the investor is confident that the stock can achieve high growth rates and are not challenged by competitors. 

Note - this is a personal observation. It is not investment advice. 

Tan Kin Lian