Roku Inc (ROKU) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Roku Inc stock (ROKU) is currently trading at $95.06. Roku Inc PE ratio is 162.02. Roku Inc PS ratio (Price-to-Sales) is 2.98. Analyst consensus price target for ROKU is $126.52. WallStSmart rates ROKU as Sell.
- ROKU PE ratio analysis and historical PE chart
- ROKU PS ratio (Price-to-Sales) history and trend
- ROKU intrinsic value — DCF, Graham Number, EPV models
- ROKU stock price prediction 2025 2026 2027 2028 2029 2030
- ROKU fair value vs current price
- ROKU insider transactions and insider buying
- Is ROKU undervalued or overvalued?
- Roku Inc financial analysis — revenue, earnings, cash flow
- ROKU Piotroski F-Score and Altman Z-Score
- ROKU analyst price target and Smart Rating
Roku Inc
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ROKU Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Roku Inc (ROKU)
ROKU trades 2092% above its Graham fair value of $4.01, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Roku Inc (ROKU) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, institutional own.. Concerns around return on equity and operating margin. Mixed signals suggest waiting for clearer direction before acting.
Roku Inc (ROKU) Key Strengths (3)
Growing significantly faster than its price suggests
85.62% of shares held by major funds and institutions
Large-cap company with substantial market presence
Supporting Valuation Data
Roku Inc (ROKU) Areas to Watch (7)
Earnings declining -64.90%, profits shrinking
Very low returns on shareholder equity
Near-zero operating margins, business under pressure
Very expensive at 5.3x book value
Very thin margins, barely profitable
Revenue is fairly priced at 2.98x sales
Solid revenue growth at 16.10% per year
Supporting Valuation Data
Roku Inc (ROKU) Detailed Analysis Report
Overall Assessment
This company scores 44/100 in our Smart Analysis, earning a D grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.7/10) while 7 fall into concern territory (avg 2.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Institutional Own., Market Cap. Valuation metrics including PEG Ratio (0.86) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, Return on Equity, Operating Margin. Some valuation metrics including Price/Sales (2.98), Price/Book (5.30) suggest expensive pricing. Growth concerns include Revenue Growth at 16.10%, EPS Growth at -64.90%, which may limit upside. Profitability pressure is visible in Return on Equity at 3.43%, Operating Margin at 4.54%, Profit Margin at 1.87%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 3.43% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 16.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and Return on Equity are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ROKU Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ROKU's Price-to-Sales ratio of 2.98x sits near its historical average of 3x (43th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 5% below its historical high of 3.12x set in Mar 2026, and 3% above its historical low of 2.9x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Roku Inc (ROKU) · COMMUNICATION SERVICES › ENTERTAINMENT
The Big Picture
Roku Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 4.7B with 16% growth year-over-year. Profit margins are thin at 1.9%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 222M in free cash flow and 223M in operating cash flow. Earnings are translating into actual cash generation.
ROE of 3.4% suggests the company isn't efficiently converting equity into profits.
Profit margin at 1.9% is thin. While this is common for high-growth companies, margins need to expand as growth naturally decelerates.
What to Watch Next
Margin expansion: can Roku Inc push profit margins above 15% as the business scales?
Valuation compression risk at a P/E of 162.0x. Any growth miss could trigger a sharp correction.
Volatility is elevated with a beta of 2.04, so expect amplified moves relative to the broader market.
Sector dynamics: monitor ENTERTAINMENT industry trends, competitive moves, and regulatory changes that could impact Roku Inc.
Bottom Line
Roku Inc offers an attractive blend of growth (16% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(106 last 3 months)
| Insider | Type | Shares |
|---|---|---|
COLLIER, CHARLES President, Roku Media | Sell | -1,715 |
| Insider | Type | Shares |
|---|---|---|
JEDDA, DAN CFO & COO | Sell | -3,000 |
Data sourced from SEC Form 4 filings
Last updated: 10:12:54 AM
About Roku Inc(ROKU)
NASDAQ
COMMUNICATION SERVICES
ENTERTAINMENT
USA
Roku, Inc. operates a TV streaming platform. The company is headquartered in San Jose, California.