Roku Valuation
| ROKU Stock | USD 72.03 0.24 0.33% |
At this time, the company appears to be fairly valued. Roku Inc holds a recent Real Value of $70.09 per share. The prevailing price of the company is $72.03. Our model determines the value of Roku Inc from analyzing the company fundamentals such as Operating Margin of (0.02) %, shares outstanding of 127.89 M, and Return On Equity of -0.0722 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Roku's valuation include:
Price Book 4.1114 | Enterprise Value 9 B | Enterprise Value Ebitda (13.40) | Price Sales 2.5963 | Forward PE 57.8035 |
Fairly Valued
Today
Please note that Roku's price fluctuation is very steady at this time. Calculation of the real value of Roku Inc is based on 3 months time horizon. Increasing Roku's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Roku's intrinsic value may or may not be the same as its current market price of 72.03, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 72.03 | Real 70.09 | Target 83.35 | Hype 72.03 | Naive 69.56 |
The intrinsic value of Roku's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Roku's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Roku Inc helps investors to forecast how Roku stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Roku more accurately as focusing exclusively on Roku's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Roku's intrinsic value based on its ongoing forecasts of Roku's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Roku's closest peers.
Roku Cash |
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Roku Valuation Trend
Roku's real value is important for investors to make better decisions and a more accurate overall view of Roku's financial worth over time. Using both Roku's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Roku Valuation Data Drivers
Roku Total Value Analysis
Roku Inc is at this time forecasted to have valuation of 8.98 B with market capitalization of 10.49 B, debt of 654.27 M, and cash on hands of 2.02 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Roku fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
8.98 B | 10.49 B | 654.27 M | 2.02 B |
Roku Investor Information
About 79.0% of the company shares are owned by institutional investors. The book value of Roku was at this time reported as 16.95. The company recorded a loss per share of 1.19. Roku Inc had not issued any dividends in recent years. Based on the key indicators related to Roku's liquidity, profitability, solvency, and operating efficiency, Roku Inc is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.Roku Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Roku has an asset utilization ratio of 81.76 percent. This implies that the Company is making $0.82 for each dollar of assets. An increasing asset utilization means that Roku Inc is more efficient with each dollar of assets it utilizes for everyday operations.Roku Ownership Allocation
Roku owns a total of 127.89 Million outstanding shares. The majority of Roku Inc outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Roku Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Roku. Please pay attention to any change in the institutional holdings of Roku Inc as this could imply that something significant has changed or is about to change at the company. On January 10, 2022, Representative David Kustoff of US Congress acquired $15k to $50k worth of Roku Inc's common stock.Roku Profitability Analysis
The company reported the previous year's revenue of 3.48 B. Net Loss for the year was (709.56 M) with profit before overhead, payroll, taxes, and interest of 1.44 B.About Roku Valuation
The stock valuation mechanism determines Roku's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Roku Inc based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Roku. We calculate exposure to Roku's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Roku's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.5 B | 779.5 M | |
| Pretax Profit Margin | (0.20) | (0.19) | |
| Operating Profit Margin | (0.13) | (0.12) | |
| Net Loss | (0.20) | (0.19) | |
| Gross Profit Margin | 0.43 | 0.33 |
Roku Growth Indicators
Investing in growth stocks can be very risky. If the company such as Roku does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 141.6 M | |
| Quarterly Earnings Growth Y O Y | -0.649 | |
| Forward Price Earnings | 57.8035 |
Roku Current Valuation Indicators
Roku's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Roku's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Roku, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Roku's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Roku's worth.Additional Tools for Roku Stock Analysis
When running Roku's price analysis, check to measure Roku's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Roku is operating at the current time. Most of Roku's value examination focuses on studying past and present price action to predict the probability of Roku's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Roku's price. Additionally, you may evaluate how the addition of Roku to your portfolios can decrease your overall portfolio volatility.