Roku, Inc. (ROKU) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Communication Services · Entertainment
Is Roku, Inc. a safe investment right now?
Roku, Inc.'s Altman Z-Score of 7.15 places it in the safe zone. Our fair value estimate is $22.80 (Overvalued). Moat rating: 2.6/5 stars.
Could Roku, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 7.15 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives ROKU's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.4881 | 1.2 | 0.59 |
| B · Retained Earnings / Total Assets | RE / TA | -0.3358 | 1.4 | -0.47 |
| C · EBIT / Total Assets | EBIT / TA | 0.0216 | 3.3 | 0.07 |
| D · Market Cap / Total Liabilities | MCap / TL | 9.8261 | 0.6 | 5.9 |
| E · Revenue / Total Assets | Rev / TA | 1.0685 | 1.0 | 1.07 |
How has ROKU's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 6.6 | Safe |
| 2023 | 5.76 | Safe |
| 2024 | 6.74 | Safe |
| 2025 | 7.15 | Safe |
Source: Calculated from ROKU's latest 10-K filing on SEC EDGAR.
What is Roku, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $0.57 | Proprietary blend of reported actuals (4Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $-0.89 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $2.03 | 27 analysts consensus |
| Trailing P/E | 200.6x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Stable | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $127.44 (27 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Roku, Inc. have a durable competitive advantage?
Moat rating: 2.6/5.
What makes up ROKU's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is ROKU's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -17.9% | — |
| 2023 | -30.0% | Declining |
| 2024 | -4.8% | Rising |
| 2025 | 3.6% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Roku, Inc.'s dividend safe?
Roku, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $4.7B | $4.1B | $3.1B | Rising |
| Net Income | $0.1B | −$0.1B | −$0.5B | Rising |
| Free Cash Flow | $0.5B | $0.2B | −$0.1B | Rising |
| Gross Margin | 43.8% | 43.9% | 46.1% | Stable |
Recent events that affect our ROKU analysis
ROKU earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.35. Revenue estimate: $1.20B. Our current Fair Value: $22.80 — a significant beat or miss could shift this estimate.
ROKU analyst consensus: 86% bullish (24 of 28 analysts)
5 Strong Buy, 19 Buy, 3 Hold, 0 Sell, 1 Strong Sell. Consensus target: $127.44 (7.7% upside). Compare with our independent Fair Value: $22.80.
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ROKU filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ROKU beat EPS estimates by 92.2%
Reported EPS: $0.53 vs estimate $0.28. Earnings strength supports our Fair Value of $22.80 (80.7% below current price).
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ROKU filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ROKU beat EPS estimates by 71.4%
Reported EPS: $0.16 vs estimate $0.09. Earnings strength supports our Fair Value of $22.80 (80.7% below current price).
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ROKU filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ROKU beat EPS estimates by 144.1%
Reported EPS: $0.07 vs estimate $-0.16. Earnings strength supports our Fair Value of $22.80 (80.7% below current price).
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ROKU filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ROKU beat EPS estimates by 24.8%
Reported EPS: $-0.19 vs estimate $-0.25. Earnings strength supports our Fair Value of $22.80 (80.7% below current price).
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ROKU filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ROKU beat EPS estimates by 44.2%
Reported EPS: $-0.24 vs estimate $-0.43. Earnings strength supports our Fair Value of $22.80 (80.7% below current price).
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ROKU filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Roku, Inc.
What is Roku, Inc. stock price today?
Roku, Inc. (ROKU) stock price is $118.34 as of the latest market close, traded on the NASDAQ exchange.
What does Roku, Inc. do?
Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United States and internationally. It operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others, as well as offers digital advertising services.
What is Roku, Inc. market cap?
Roku, Inc. has a market capitalization of $17.45B, classifying it as a large-cap stock in the Communication Services sector.
What sector and industry is ROKU in?
Roku, Inc. operates in the Communication Services sector, specifically within the Entertainment industry. It trades on the NASDAQ under the ticker symbol ROKU.
Is ROKU stock overvalued or undervalued?
Based on our valuation model, Roku, Inc. trades 419.0% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $22.80
- Current Price: $118.34
- Valuation Zone: Overvalued
What is ROKU stock forecast and analyst target price?
Based on 27 Wall Street analysts, the consensus price target for Roku, Inc. is $127.44, implying upside of 7.7% from the current price.
- Analyst High Target: $160.00
- Analyst Low Target: $85.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Roku, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Roku, Inc.:
- Revenue growth (current year est.): 16.3%
- EPS growth (current year est.): 236.5%
- Revenue growth (next year est.): 12.0%
- EPS growth (next year est.): 58.1%
What are Roku, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $4.7B | Rising |
| Net Income | $0.1B | Rising |
| Free Cash Flow | $0.5B | Rising |
| Gross Margin | 43.8% | Stable |
What is ROKU's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 200.6x
- Forward P/E (next 12 months est.): 36.8x
- FairValueLabs Fair P/E: 40.0x
How volatile is ROKU stock?
Roku, Inc. has a beta of 2.00, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Roku, Inc. have?
Roku, Inc.'s balance sheet shows:
- Total Cash: $2.32B
- Total Debt: $523.3M
- Net Cash Position: $1.79B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Roku, Inc.'s free cash flow?
Roku, Inc. generated $661.0M in trailing twelve-month free cash flow (from $483.7M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Roku, Inc. pay a dividend?
Roku, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Roku, Inc. at risk of going bankrupt?
Roku, Inc.'s Altman Z-Score is 7.15, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Roku, Inc. have a durable competitive advantage?
Roku, Inc. scores 2.6/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is ROKU's return on equity (ROE)?
Roku, Inc.'s return on equity is 3.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy ROKU stock?
ROKU shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol ROKU
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is ROKU a value stock or speculative?
FairValueLabs classifies Roku, Inc. as Pure Speculation. It lacks the financial stability or valuation margin typically required for value investing. This stock is considered high risk.
Who is the CEO of Roku, Inc.?
The current CEO of Roku, Inc. is Mr. Anthony J. Wood.
What is ROKU's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $0.59
- Forward EPS (next 12 months est.): $3.22
- Analyst consensus EPS (this year): $2.03
- Analyst consensus EPS (next year): $3.22
Other Communication Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
ROKU analysis methodology: How we calculate fair value, Z-Scores, and moat ratings