As a leading force in building video streaming into what it is today, Netflix (NASDAQ: NFLX) and its struggles in the first half of 2022 sent shockwaves through the industry. The company's loss of 200,000 subscribers in the first quarter of 2022, with a projection of 2 million further losses in Q2, had investors scrambling to sell the streaming stock. While Netflix's more modest loss of 1 million members in Q2 2022 eased many investors' worst fears, the stock remains down over 60% year to date.  

However, the company's financials suggest Netflix is a safer bet than its stock price would have you think. As a result, prospective investors might be able to buy the streaming stock at a bargain now. Here's why.

Despite investors' caution with Netflix's stock, the company's price-to-earnings (P/E) ratio is down 66% since August 2021 and not far off its lows of the last five years. The company may have been overvalued a year ago, but the valuation looks much more reasonable now. 

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Source Fool.com