Roku, Inc.

NasdaqGS:ROKU Stock Report

Market Cap: US$11.7b

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 ($80.59) is trading below our estimate of fair value ($129.94)

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?

Key metric: As ROKU is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ROKU. This is calculated by dividing ROKU's market cap by their current revenue.
What is ROKU's PS Ratio?
PS Ratio3x
SalesUS$3.90b
Market CapUS$11.70b

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 Average3.5x
EDR Endeavor Group Holdings
1.3x3.0%US$14.6b
WMG Warner Music Group
2.5x5.2%US$16.1b
MSGS Madison Square Garden Sports
5.2x3.9%US$5.4b
TME Tencent Music Entertainment Group
5x9.1%US$18.7b
ROKU Roku
3x11.5%US$11.7b

Price-To-Sales vs Peers: ROKU is good value based on its Price-To-Sales Ratio (3x) compared to the peer average (3.8x).

Price to Sales Ratio vs Industry

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

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
IQ iQIYI
0.5x1.8%US$1.95b
LGF.A Lions Gate Entertainment
0.5x5.0%US$1.78b
AMC AMC Entertainment Holdings
0.4x9.1%US$1.54b
RDBX Redbox Entertainment
0.08x34.4%US$76.65m
ROKU 3.0xIndustry Avg. 1.3xNo. of Companies24PS0246810+
24 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ROKU is expensive based on its Price-To-Sales Ratio (3x) 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 Ratio3x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: ROKU is expensive based on its Price-To-Sales Ratio (3x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).

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$80.59
US$78.70
-2.3%
18.2%US$100.00US$50.00n/a25
Dec ’25US$69.03
US$77.70
+12.6%
17.7%US$100.00US$50.00n/a25
Nov ’25US$65.70
US$77.80
+18.4%
17.1%US$100.00US$50.00n/a24
Oct ’25US$74.34
US$72.05
-3.1%
21.2%US$105.00US$50.00n/a24
Sep ’25US$67.77
US$68.26
+0.7%
20.1%US$105.00US$50.00n/a23
Aug ’25US$55.33
US$72.86
+31.7%
21.0%US$105.00US$50.00n/a22
Jul ’25US$62.47
US$73.18
+17.1%
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$50.00US$69.0326
Nov ’24US$59.70
US$82.30
+37.9%
20.2%US$115.00US$50.00US$65.7025
Oct ’24US$70.59
US$85.28
+20.8%
19.2%US$115.00US$50.00US$74.3427
Sep ’24US$81.72
US$80.21
-1.8%
17.8%US$100.00US$50.00US$67.7726
Aug ’24US$97.49
US$77.44
-20.6%
16.9%US$95.00US$50.00US$55.3327
Jul ’24US$63.96
US$69.35
+8.4%
16.9%US$90.00US$41.00US$62.4726
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:46
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Roku, Inc. is covered by 44 analysts. 29 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Richard KramerArete Research Services LLP
David MakArete Research Services LLP
Vikram KesavabhotlaBaird