Roku (ROKU) - 0.48% Below 52-Week High: Buy or Wait?

Stock Details

Roku Inc (ROKU), a prominent company in the communication services sector within the entertainment industry, is based in USA and primarily trades on the NASDAQ.Currently, the stock is trading at $157.11. Over the past 52 weeks, it has ranged between $78.53 and $157.86. This places the current price at 99.5% of its 52-week high and 100.1% above its 52-week low. Recent trading volume was recorded at 913,587. The 14-day Relative Strength Index (RSI) stands at 36.96, suggesting neutral conditions. The stock is currently trading above its 50-day moving average of $94.57 by 66.13%. Similarly, it is above its 200-day moving average of $81.53 by 92.70%. The MACD histogram is -1.03, indicating bearish momentum (MACD Line: 0.86, Signal Line: 1.89).

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

66.53

Above market average

Forward P/E

65.36

Earnings expected to grow

PEG Ratio

1.08

Reasonably valued

Price to Book

7.98

EV/EBITDA

27.99

EPS (TTM)

$2.37

Price to Sales

4.49

Beta

2.04

More volatile than market

Q:How is ROKU valued relative to its earnings and growth?

Roku Inc trades at a P/E ratio of 66.53, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 65.36 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.08 indicates reasonable value when growth is considered.

Q:What is ROKU's risk profile compared to the market?

With a beta of 2.04, Roku Inc is significantly more volatile than the market. For every 10% market move, this stock tends to move 20% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 7.98 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

6.82%

Operating Margin

12.20%

EBITDA

$579.00M

Return on Equity

13.10%

Return on Assets

4.25%

Revenue Growth (YoY)

21.90%

Earnings Growth (YoY)

1443.00%

Q:How profitable and efficient is ROKU's business model?

Roku Inc achieves a profit margin of 6.82%, meaning it retains $6.82 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 12.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 13.10% and ROA at 4.25%, the company achieves moderate returns on invested capital.

Q:What are ROKU's recent growth trends?

Roku Inc's revenue grew by 21.90% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 1443.00% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against ENTERTAINMENT industry averages for proper context.

Company Size & Market

Market Cap

$23.4B

Revenue (TTM)

$5.21B

Revenue/Share (TTM)

$35.26

Shares Outstanding

132.05M

Book Value/Share

$18.10

Asset Type

Common Stock

Q:What is ROKU's market capitalization and position?

Roku Inc has a market capitalization of $23.4B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 132.05M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ENTERTAINMENT industry, it competes with other firms in this sector.

Q:How does ROKU's price compare to its book value?

Roku Inc's book value per share is $18.10, while the current stock price is $157.11, resulting in a price-to-book (P/B) ratio of 8.68. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$162.55

3.46% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for ROKU?

26 analysts cover ROKU with 38% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $162.55 implies 3.5% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on ROKU?

Current analyst recommendations:1 Strong Buy, 9 Buy, 15 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Aug 16, 2026, 02:37 AM

Technical Indicators

RSI (14-day)

36.96

Neutral

50-Day Moving Average

$94.57

66.13% above MA-50

200-Day Moving Average

$81.53

92.70% above MA-200

MACD Line

0.86

MACD Signal

1.89

MACD Histogram

-1.03

Bearish

Q:What does ROKU's RSI value tell investors?

The RSI (Relative Strength Index) for ROKU is currently 36.96, indicating the stock is showing bearish momentum (30-40 range). Selling pressure is evident but not extreme. This often occurs during pullbacks in uptrends or early stages of downtrends. Combined with the price being above the 50-day moving average, this shows mixed signals requiring careful analysis.

Q:How should traders interpret ROKU's MACD and moving average crossovers?

MACD analysis shows the MACD line at 0.86 below the signal line at 1.89, with histogram at -1.03. This bearish crossover indicates downward pressure. The wide histogram confirms strong momentum. The 50-day MA ($94.57) is above the 200-day MA ($81.53), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 12, 2025, 12:40 AM

Roku Inc (ROKU) Stock