## NFLX PE Stream Chart Analysis **Current Valuation (Latest Data Point):** As of the most recent data point (mid-March 2026), NFLX is trading at a monthly average price of approximately **$94.70**, which places it significantly **above the 38.6x PE boundary** (score: ~$42.40 at the 16.4x level, and ~$99.74 at the 38.6x level). More precisely, the current price of $94.70 sits between the **31.2x PE boundary** ($80.62) and the **38.6x PE boundary** ($99.74), placing the stock firmly in the **"Warning" zone** — the highest valuation band, indicating the stock is trading at a historically elevated multiple relative to its earnings base. This suggests that at current prices, the potential upside return is limited and investors should exercise significant caution before initiating new positions. **Historical Valuation Trend:** Looking back from early 2021 through mid-March 2026, NFLX's valuation journey has been dramatic and multi-phased. In early 2021, the stock traded around $52–$54, comfortably within the **"Value" Interval** (between the 1.6x and 9.0x PE boundaries), reflecting a period of relative undervaluation. Through mid-2021 into late 2021, prices climbed toward the $60–$66 range, but still remained well below all major PE band boundaries, staying in the **"Value" to "Fair" Interval**. A sharp correction followed from early 2022 through mid-2022, with prices collapsing to the $18–$30 range — paradoxically pushing the stock even deeper into **"Undervalued" territory** as the PE stream boundaries themselves remained elevated. From late 2022 through 2023, prices gradually recovered from the low $20s back toward the $30–$47 range, remaining in the **"Value" Interval** throughout this recovery phase. The pivotal re-rating began in early 2024, as prices surged from ~$50 to over $91 by end of 2024, crossing into the **"Fair" and "Watch" Intervals**. However, a critical structural shift occurred around Q1 2025, when the PE stream boundaries dropped sharply — the 9.0x boundary fell from ~$182 to ~$60, and the 38.6x boundary collapsed from ~$782 to ~$257 — reflecting a significant downward revision in earnings estimates. This recalibration caused the stock price (then ~$90–$124) to suddenly appear **extremely overvalued**, vaulting it into the **"Warning" zone** despite no dramatic change in absolute price levels. Since mid-2025, prices have gradually declined from a peak of ~$124 toward the current ~$94, but the PE boundaries have continued contracting, keeping NFLX persistently in the **"Warning" Interval**. The overall trend of the PE river chart shows a **downward-sloping trajectory** in the boundary lines from Q1 2025 onward, signaling deteriorating earnings expectations — a cautionary signal for long-term investors.