We’ve recently updated our valuation analysis.

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

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue2.4x
Enterprise Value/EBITDA-1079.9x
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.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.1x
TME Tencent Music Entertainment Group
3.4x5.8%US$14.3b
DIS Walt Disney
2.4x5.8%US$202.2b
WBD Warner Bros. Discovery
1.4x4.2%US$37.4b
NFLX Netflix
5.2x9.4%US$163.0b
ROKU Roku
2.8x11.7%US$8.8b

Price-To-Sales vs Peers: ROKU is good value based on its Price-To-Sales Ratio (2.8x) compared to the peer average (3.1x).


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/a28.3%
n/an/an/a

Price-To-Sales vs Industry: ROKU is expensive based on its Price-To-Sales Ratio (2.8x) compared to the US Entertainment industry average (1.8x)


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 Ratio2.8x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: ROKU is expensive based on its Price-To-Sales Ratio (2.8x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).


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 ($62.84) is trading below our estimate of fair value ($147.53)

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


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$62.84
US$56.93
-9.4%
26.0%US$80.00US$30.00n/a24
Jan ’24US$40.70
US$60.10
+47.7%
25.0%US$90.00US$40.00n/a24
Dec ’23US$59.78
US$60.10
+0.5%
25.0%US$90.00US$40.00n/a24
Nov ’23US$56.79
US$78.84
+38.8%
26.1%US$130.00US$50.00n/a25
Oct ’23US$56.40
US$80.28
+42.3%
24.4%US$130.00US$53.00n/a25
Sep ’23US$68.30
US$83.20
+21.8%
24.3%US$130.00US$53.00n/a25
Aug ’23US$71.69
US$86.00
+20.0%
29.6%US$165.00US$53.00n/a25
Jul ’23US$83.91
US$149.38
+78.0%
27.2%US$240.00US$80.00n/a24
Jun ’23US$90.77
US$155.54
+71.4%
25.6%US$240.00US$80.00n/a24
May ’23US$92.90
US$159.67
+71.9%
25.3%US$240.00US$80.00n/a24
Apr ’23US$125.56
US$188.30
+50.0%
32.4%US$342.00US$94.00n/a23
Mar ’23US$136.62
US$197.29
+44.4%
36.9%US$389.00US$94.00n/a24
Feb ’23US$166.26
US$346.15
+108.2%
30.5%US$550.00US$136.00US$60.0526
Jan ’23US$228.20
US$379.96
+66.5%
22.7%US$550.00US$190.00US$40.7025
Dec ’22US$207.75
US$401.76
+93.4%
20.3%US$550.00US$195.00US$59.7825
Nov ’22US$317.72
US$451.96
+42.3%
19.5%US$600.00US$195.00US$56.7924
Oct ’22US$314.46
US$453.42
+44.2%
20.0%US$600.00US$170.00US$56.4024
Sep ’22US$368.10
US$468.00
+27.1%
19.1%US$600.00US$170.00US$68.3022
Aug ’22US$428.31
US$456.95
+6.7%
21.2%US$560.00US$170.00US$71.6921
Jul ’22US$435.67
US$453.18
+4.0%
20.4%US$560.00US$170.00US$83.9122
Jun ’22US$347.71
US$445.91
+28.2%
20.6%US$560.00US$170.00US$90.7722
May ’22US$342.97
US$466.73
+36.1%
21.3%US$600.00US$170.00US$92.9022
Apr ’22US$331.90
US$468.95
+41.3%
22.1%US$600.00US$150.00US$125.5621
Mar ’22US$420.31
US$469.65
+11.7%
22.3%US$600.00US$150.00US$136.6220
Feb ’22US$416.20
US$326.81
-21.5%
32.7%US$500.00US$150.00US$166.2621

Analyst Forecast: Target price is lower than the current share price.


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