ROKU PE Ratio & Valuation,Is ROKU Overvalued

ROKU Relative Valuation

ROKU's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ROKU is overvalued; if below, it's undervalued.

Historical Valuation

Roku Inc (ROKU) is now in the Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of 294.03. The fair price of Roku Inc (ROKU) is between NaN to NaN according to relative valuation methord.

Relative Value

Fair Zone

NaN-NaN

Current Price：109.03

Fair

128.15

27.25

EV/EBITDA

Roku Inc. (ROKU) has a current EV/EBITDA of 27.25. The 5-year average EV/EBITDA is 21.10. The thresholds are as follows: Strongly Undervalued below -200.82, Undervalued between -200.82 and -89.86, Fairly Valued between 132.06 and -89.86, Overvalued between 132.06 and 243.03, and Strongly Overvalued above 243.03. The current Forward EV/EBITDA of 27.25 falls within the Historic Trend Line -Fairly Valued range.

188.48

EV/EBIT

Roku Inc. (ROKU) has a current EV/EBIT of 188.48. The 5-year average EV/EBIT is -602.71. The thresholds are as follows: Strongly Undervalued below -5865.17, Undervalued between -5865.17 and -3233.94, Fairly Valued between 2028.52 and -3233.94, Overvalued between 2028.52 and 4659.76, and Strongly Overvalued above 4659.76. The current Forward EV/EBIT of 188.48 falls within the Historic Trend Line -Fairly Valued range.

3.08

Roku Inc. (ROKU) has a current PS of 3.08. The 5-year average PS is 5.45. The thresholds are as follows: Strongly Undervalued below -4.99, Undervalued between -4.99 and 0.23, Fairly Valued between 10.67 and 0.23, Overvalued between 10.67 and 15.89, and Strongly Overvalued above 15.89. The current Forward PS of 3.08 falls within the Historic Trend Line -Fairly Valued range.

19.90

P/OCF

Roku Inc. (ROKU) has a current P/OCF of 19.90. The 5-year average P/OCF is 43.44. The thresholds are as follows: Strongly Undervalued below -213.56, Undervalued between -213.56 and -85.06, Fairly Valued between 171.94 and -85.06, Overvalued between 171.94 and 300.44, and Strongly Overvalued above 300.44. The current Forward P/OCF of 19.90 falls within the Historic Trend Line -Fairly Valued range.

18.19

P/FCF

Roku Inc. (ROKU) has a current P/FCF of 18.19. The 5-year average P/FCF is 77.55. The thresholds are as follows: Strongly Undervalued below -290.65, Undervalued between -290.65 and -106.55, Fairly Valued between 261.66 and -106.55, Overvalued between 261.66 and 445.76, and Strongly Overvalued above 445.76. The current Forward P/FCF of 18.19 falls within the Historic Trend Line -Fairly Valued range.

Roku Inc (ROKU) has a current Price-to-Book (P/B) ratio of 6.13. Compared to its 3-year average P/B ratio of 4.32 , the current P/B ratio is approximately 42.12% higher. Relative to its 5-year average P/B ratio of 8.28, the current P/B ratio is about -25.92% higher. Roku Inc (ROKU) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.13%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 0.79% , the current FCF yield is about -100.00% lower.

6.13

P/B

Median3y

4.32

Median5y

8.28

2.83

FCF Yield

Median3y

1.13

Median5y

0.79

Competitors Valuation Multiple

The average P/S ratio for ROKU's competitors is , providing a benchmark for relative valuation. Roku Inc Corp (ROKU) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 13.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ROKU increased by 46.66% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -120.12 to -569.23.

The secondary factor is the Revenue Growth, contributed 13.97%to the performance.

Overall, the performance of ROKU in the past 1 year is driven by P/E Change. Which is more unsustainable.

13.97%

1.06B → 1.21B

Revenue Growth

-341.18%

-0.85 → 2.05

Margin Expansion

373.87%

-120.12 → -569.23

P/E Change

46.66%

74.34 → 109.03

Mkt Cap Growth

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Frequently Asked Questions

Is Roku Inc (ROKU) currently overvalued or undervalued?

What is Roku Inc (ROKU) fair value?

ROKU's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Roku Inc (ROKU) is between NaN to NaN according to relative valuation methord.

How does ROKU's valuation metrics compare to the industry average?

What is the current P/B ratio for Roku Inc (ROKU) as of Dec 16 2025?

As of Dec 16 2025, Roku Inc (ROKU) has a P/B ratio of 6.13. This indicates that the market values ROKU at 6.13 times its book value.

What is the current FCF Yield for Roku Inc (ROKU) as of Dec 16 2025?

As of Dec 16 2025, Roku Inc (ROKU) has a FCF Yield of 0.00%. This means that for every dollar of Roku Inc’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Roku Inc (ROKU) as of Dec 16 2025?

As of Dec 16 2025, Roku Inc (ROKU) has a Forward P/E ratio of 128.15. This means the market is willing to pay $128.15 for every dollar of Roku Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Roku Inc (ROKU) as of Dec 16 2025?

As of Dec 16 2025, Roku Inc (ROKU) has a Forward P/S ratio of 0.00. This means the market is valuing ROKU at $0.00 for every dollar of expected revenue over the next 12 months.

ROKU Valuation