Netflix Trades at 21 Times Forward Earnings After Falling 43% From Its High. Here's How Th

Netflix ( $NFLX+WL +2.30% ) stock is down 43% from its high, something that has happened only twice in the last 15 years. However, what may be more surprising is how this has affected the stock's valuation. Thanks to the pullback, Netflix trades at a forward earnings multiple of 21. The stock traded at a premium valuation for most of its history and had almost reached a forward P/E of 50 as recently as last fall. That may also lead investors to wonder what happened following previous pullbacks in Netflix stock, as knowing that could offer insight into when contrarian investors might want to take a chance on the communications stock .