Netflix Inc (NFLX) is overvalued and Warner Bros. Discovery Inc (WBD) is overvalued.
Both trade above our estimate of their intrinsic value. NFLX is the closer of the two: -23%, against -47% for WBD.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.9% (average of 3 methods) values the shares at $58.62; the price of $72.16 is 23% above that value, and 68% of that value comes from beyond year five.
Leak Score 67/100 on 10 of 12 signals
Discounting its cash flows at 11.5% (average of 2 methods) values the shares at $21.02; the price of $30.83 is 47% above that value, and 69% of that value comes from beyond year five.
Leak Score 32/100 on 9 of 12 signals
| Metric | NFLX | WBD |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $72.16 | $30.83 |
| Intrinsic value | $58.62 | $21.02 |
| Margin of safety | -23% | -47% |
| Leak Score | 67/100 (10/12) | 32/100 (9/12) |
| Market cap | $300.5B | $77.4B |
| Revenue growth, 5 years | 12.6% | 28.5% |
| Operating margin | 30.3% | 7.0% |
| Net margin | 28.0% | -8.8% |
| Return on equity | 49.5% | -9.2% |
| Debt to equity | 0.55 | 0.98 |
| P/E | 22.7x | — |
| Forward P/E | 19.0x | 10779.7x |
| P/B | 10.0x | 2.4x |