Roku Valuation

Is ROKU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ROKU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ROKU ($54.4) is trading below our estimate of fair value ($97.95)

Significantly Below Fair Value: ROKU is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for ROKU?

Other financial metrics that can be useful for relative valuation.

ROKU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA-132.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ROKU's PS Ratio compare to its peers?

The above table shows the PS ratio for ROKU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.4x
EDR Endeavor Group Holdings
1.3x7.7%US$12.5b
WMG Warner Music Group
2.4x5.9%US$15.6b
MSGS Madison Square Garden Sports
4.9x2.0%US$4.5b
FWON.K Formula One Group
4.9x8.6%US$16.7b
ROKU Roku
2.2x10.4%US$7.8b

Price-To-Sales vs Peers: ROKU is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (3.4x).


Price to Earnings Ratio vs Industry

How does ROKU's PE Ratio compare vs other companies in the US Entertainment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.4%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.4%
n/an/an/a
No more companies

Price-To-Sales vs Industry: ROKU is expensive based on its Price-To-Sales Ratio (2.2x) compared to the US Entertainment industry average (1.3x).


Price to Sales Ratio vs Fair Ratio

What is ROKU's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ROKU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.2x
Fair PS Ratio1.9x

Price-To-Sales vs Fair Ratio: ROKU is expensive based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ROKU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$54.40
US$73.18
+34.5%
20.5%US$105.00US$50.00n/a22
Jun ’25US$57.40
US$75.45
+31.5%
21.1%US$105.00US$50.00n/a23
May ’25US$59.13
US$75.66
+28.0%
20.8%US$105.00US$50.00n/a24
Apr ’25US$64.19
US$83.60
+30.2%
22.5%US$120.00US$50.00n/a23
Mar ’25US$63.35
US$84.25
+33.0%
21.8%US$120.00US$50.00n/a23
Feb ’25US$88.65
US$90.24
+1.8%
17.6%US$120.00US$63.00n/a24
Jan ’25US$91.66
US$88.58
-3.4%
19.4%US$120.00US$50.00n/a27
Dec ’24US$103.54
US$85.28
-17.6%
18.0%US$115.00US$50.00n/a26
Nov ’24US$59.70
US$82.30
+37.9%
20.2%US$115.00US$50.00n/a25
Oct ’24US$70.59
US$85.28
+20.8%
19.2%US$115.00US$50.00n/a27
Sep ’24US$81.72
US$80.21
-1.8%
17.8%US$100.00US$50.00n/a26
Aug ’24US$97.49
US$77.44
-20.6%
16.9%US$95.00US$50.00n/a27
Jul ’24US$63.96
US$69.35
+8.4%
16.9%US$90.00US$41.00n/a26
Jun ’24US$58.55
US$68.88
+17.6%
18.4%US$90.00US$41.00US$57.4025
May ’24US$56.68
US$68.88
+21.5%
18.4%US$90.00US$41.00US$59.1325
Apr ’24US$65.82
US$70.93
+7.8%
19.1%US$90.00US$36.00US$64.1923
Mar ’24US$63.64
US$71.05
+11.7%
19.3%US$90.00US$36.00US$63.3524
Feb ’24US$60.05
US$56.93
-5.2%
26.0%US$80.00US$30.00US$88.6524
Jan ’24US$40.70
US$60.10
+47.7%
25.0%US$90.00US$40.00US$91.6624
Dec ’23US$59.78
US$60.10
+0.5%
25.0%US$90.00US$40.00US$103.5424
Nov ’23US$56.79
US$78.84
+38.8%
26.1%US$130.00US$50.00US$59.7025
Oct ’23US$56.40
US$80.28
+42.3%
24.4%US$130.00US$53.00US$70.5925
Sep ’23US$68.30
US$83.20
+21.8%
24.3%US$130.00US$53.00US$81.7225
Aug ’23US$71.69
US$86.00
+20.0%
29.6%US$165.00US$53.00US$97.4925
Jul ’23US$83.91
US$149.38
+78.0%
27.2%US$240.00US$80.00US$63.9624
Jun ’23US$90.77
US$155.54
+71.4%
25.6%US$240.00US$80.00US$58.5524

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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