Roku, Inc. (ROKU) is a publicly traded company in the Communication Services — Entertainment industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Roku, Inc., alongside its affiliated companies, operates a significant platform for television streaming. The enterprise is segmented into two primary areas: Platform and Player. Through its platform, users can effortlessly explore and access a vast selection of content, including films, television series, live broadcasts, news updates, sports events, and other forms of entertainment. As of December 31, 2021, Roku had garnered 60.1 million active user accounts.
Is Roku, Inc. stock overvalued or undervalued in 2026?
Roku, Inc. (ROKU) trades at 47.4× earnings (P/E), above the median of the 81 communication companies over $2bn in Kaplio's universe. At its sector median (19.1×) $64 (-60 %).
Kaplio overview: Roku, Inc.
Market cap $21B · 52 weeks $83 – $160 (3 % below the high) · P/E 47.4× · 2027 est. P/E 40.7× · Dividend none · Next earnings February 11, 2027 · expected EPS $0.80 · Closing price, Nov 3 · accounts published Nov 2.
- Valuation: TTM P/E 47.4× (expensive).
- Business: EBITDA margin 9.2 % (weak).
- Balance sheet: Net cash/EBITDA 3.3× (solid).
- Earnings: 8 of 8 (uneven).
What would it be worth at its usual multiples?
At its sector median (19.1×) $64 (-60 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Why is Roku, Inc.'s P/E so low?
Roku, Inc. trades at a P/E of 47.4× on reported earnings, but over the last 12 months 20 % of its pre-tax income ($109M) came from outside the business, such as revaluations or sales of stakes in other companies. It is real money, but it doesn't repeat every year. Without that part, its P/E would be about 59.5×. Kaplio's calculation from the official quarterly accounts filed up to the quarter ended September 30, 2026.
| Quarter ended | From the business | Outside the business | Net income |
|---|---|---|---|
| December 31, 2025 | $66.0M | $25.7M | $80.5M |
| March 31, 2026 | $51.8M | $36.9M | $85.7M |
| June 30, 2026 | $146M | $23.2M | $164M |
| September 30, 2026 | $164M | $23.3M | $183M |
What matters in communication: 4 of 6 pass
- EBITDA margin 9.2 %, fails.
- FCF yield 2.0 %, fails.
- 3y revenue growth 12.3 %, passes.
- Capex / Revenue 0.1 %, passes.
- Net debt / EBITDA −3.3×, passes.
- EV/EBITDA vs own 5y 26.6×, passes.
- Payout on FCF n/a: it pays no dividend, info.
Against its peers (reference peers) — Roku, Inc.: P/E 47.4×; EV/EBITDA 26.6×; ROIC 11.8 %; $21.2B. Netflix, Inc. (P/E 18.3×; EV/EBITDA 7.3×; ROIC 26.6 %; $264B), Spotify Technology S.A. (P/E 37.2×; EV/EBITDA 29.2×; ROIC 22.8 %; $123B), Formula One Group (P/E 47.7×; EV/EBITDA 18.1×; ROIC 2.7 %; $22.0B).
Profitability
| Return on Equity | 18.37% |
| Return on Invested Capital | 11.82% |
| Return on Assets | 10.43% |
| Gross Margin | 45.34% |
| Operating Margin | 7.78% |
| Net Margin | 9.34% |
Financial Health
| Debt / Equity | 0.10 |
| Current Ratio | 2.70 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 6.57 |
Price Performance
| 1 month | +1.38% |
| 3 months | +3.63% |
| Year-to-date | +43.35% |
| 1 year | +46.58% |
| 3 years | +83.50% |
| 5 years | -44.18% |
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Explore sector: Communication Services · Entertainment
More sections of ROKU: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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