Netflix(US:NFLX) Ge Long Hui A P P·2026-01-09 12:13Core Viewpoint - Netflix's stock has experienced a significant decline of 27% since October, when it was rumored to be a potential acquirer of Warner Bros. Discovery, yet it remains perceived as too expensive for investors [1] Valuation Comparison - Netflix's current expected price-to-earnings (P/E) ratio is approximately 28 times, which is higher than competitors such as Walt Disney, Amazon, and Alphabet, as well as the S&P 500 and Nasdaq 100 indices [1] - In contrast, Paramount Global, which is also bidding for Warner Bros. and operates Paramount+, has an expected P/E ratio of less than 13 times [1] Historical Context - Despite the current valuation, Netflix's stock can be considered "cheap" relative to its historical trading levels, with an average P/E ratio of 34 times over the past five years [1] - Since reaching a peak on June 30, Netflix's market capitalization has decreased by one-third [1]