Roku, Inc. (ROKU) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-101.0%

-$1.56

vs $156.10 price

Levered DCF

$23.57

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

8.25

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	180.82×	-83.53×	-18.3×	-11.24×	124.7×	-2,371.57×	-257.5×	-361.75×
P/B	6.01×	4.31×	5.58×	2.12×	10.95×	31×	22.09×	13.1×
P/S	3.37×	2.61×	3.72×	1.79×	10.95×	23.15×	13.67×	4.32×
EV / EBITDA	34.94×	41.77×	-31.98×	-29.34×	70.11×	811.33×	-745.84×	-5,100.22×
Gross margin	43.8%	43.9%	43.7%	46.1%	51.0%	45.4%	43.9%	44.7%
Operating margin	-0.1%	-5.3%	-22.7%	-17.0%	8.5%	-1.1%	-5.8%	-1.8%
Net margin	1.9%	-3.1%	-20.4%	-15.9%	8.8%	-1.0%	-5.3%	-1.2%
Current ratio	2.75×	2.62×	2.41×	2.74×	4.19×	3.26×	2.58×	2.23×
Debt / equity	0.33×	0.24×	0.28×	0.27×	0.19×	0.33×	0.6×	0×
Interest coverage	-2.95×	-530.82×	-1,085.45×	-102.87×	78.89×	-5.9×	-27.5×	-38.43×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	3.3%	-5.2%	-30.5%	-18.8%	8.8%	-1.3%	-8.6%	-3.6%
Return on invested capital	-0.2%	-6.9%	-25.9%	-15.3%	6.9%	-1.1%	-5.6%	-4.7%
Return on assets	2.0%	-3.0%	-16.6%	-11.3%	5.9%	-0.8%	-4.1%	-1.9%
Free cash flow yield	3.0%	2.0%	1.3%	-2.7%	0.6%	0.2%	-0.5%	-0.1%
Earnings yield	0.6%	-1.2%	-5.5%	-8.9%	0.8%	-0.0%	-0.4%	-0.3%
Enterprise value	$15.2B	$9.2B	$11.6B	$4.4B	$28.7B	$40.5B	$15.3B	$3B
Net debt / EBITDA	-1.64×	-7.13×	3.78×	8.36×	-3.97×	-13.11×	4.68×	260.14×
Cash conversion cycle (days)	62	54	31	76	79	86	70	71