Roku ROKU
United StatesCommunication Services · EntertainmentUSD
162.33 USD (+6.3%)
20 analysts
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Roku operates a leading streaming platform in the US that combines the sale of playback devices with a digital advertising business on its operating system, monetizing both users and advertisers.
Key points
from its scores- ✓Good share-price trend9.6
- ✓Strong growth9.2
- ✓Very solid balance sheet8.0
- ✕Little or no dividend1.5
- ✕Unfavourable risk and backdrop1.9
AI analysis
bottom line, main risk, context and newsGrowth and cash position justify the premium, but valuation requires flawless execution going forward.
Roku shows explosive growth (revenue +21.9%, earnings +1442.9%) with net cash and a 19.2% ROIC, although its demanding valuation (P/E 64.99) and lack of dividend limit appeal for value investors; momentum is very strong (91st percentile in 52 weeks).
Intense competition in streaming (Netflix, Disney+, Amazon) and dependence on cyclical advertising spend could slow revenue growth and compress the operating margin (12.17%).
Context and risks
Roku has no material exposure to current macro factors: its streaming platform business does not depend on commodities, shipping routes, or interest rates significantly. Its balance sheet shows net cash, insulating it from tighter financial conditions. The main risk is specific to its business: competition in the streaming market and seasonality of advertising spend.
Is Roku stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 275% above the Communication Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 65.0 | 17.1 | +279% |
| EV / EBITDA | 35.6 | 9.6 | +271% |
| Price / book | 8.0 | 2.3 | +247% |
| Price / sales | 4.4 | 1.9 | +125% |
Sector: median of the 102 Communication Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Communication Services: 6.3).
Average analyst target: 162.33 USD, +6.3% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 7.4 (sector 6.1), Growth 9.2 (sector 5.4).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Communication Services medianValuation
- P/E
- 65.0
- Forward P/E
- 38.6
- EV / EBITDA
- 35.6
- Price / book
- 8.0
- Price / sales
- 4.4
- PEG
- 0.59
- Market cap
- 22.7B USD
- Enterprise value
- 20.6B USD
Profitability
- ROE
- 13.1%
- ROA
- 4.2%
- ROIC (approx.)
- 19.2%
- Gross margin
- 45.5%
- Operating margin
- 12.2%
- Net margin
- 6.8%
- Free cash flow
- 836.6M USD
- FCF yield
- 3.7%
- Cash conversion
- 144%
Solvency
- Total debt
- 474.1M USD
- Net debt
- −2.1B USD
- Cash
- 2.6B USD
- EBITDA
- 579.0M USD
- Net debt / EBITDA
- −3.60
- Debt / equity
- 16.79
- Current ratio
- 2.87
- Quick ratio
- 2.65
Growth
- Revenue growth
- +21.9%
- Earnings growth
- +1,442.9%
- EPS (TTM)
- 2.35 USD
- EPS (forward)
- 3.95 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 2.05
- Analyst consensus
- Hold (20)
- Target price
- 162.33 USD
- 52-week range
- 78.53 – 159.89
Recent news
All ROKU news →Compare it with its sector
All 102 in Communication Services →Frequently asked questions about Roku
Is Roku stock cheap or expensive?
On P/E and EV / EBITDA, it trades 275% above the Communication Services median on average. Valuation score: 5.0 out of 10 (median for Communication Services: 6.3). Average analyst target: 162.33 USD, +6.3% versus the price. This is not investment advice.
What score does Roku get on MeridIAn Screener?
It scores 6.4 out of 10, rank 653 of 2,130 (better than 68% of the companies analysed). Its strongest category is Momentum (9.6) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Roku's P/E ratio?
Its P/E is 65.0: the share price equals 65.0 times earnings per share over the last 12 months. The Communication Services median is 17.1. Based on the earnings analysts expect, the forward P/E is 38.6.
How much is Roku worth on the stock market?
Its market capitalisation is 22.7B USD and its enterprise value, debt included, is 20.6B USD.
How much debt does Roku have?
It has more cash than debt: net cash of 2.1B USD.
Does Roku pay a dividend?
It pays no dividend, or almost none.
How has Roku stock performed over the last year?
It has risen 66.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 78.53 and 159.89 USD. Past performance does not guarantee future results.
What do analysts think of Roku?
20 analysts cover it; their average recommendation is “Hold” and their average target is 162.33 USD (+6.3% versus the price). It is an estimate, not market data.