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ROKU

Roku Inc. — Beer Score

ROKU · US Equity · Communication Services — Streaming Devices
$75.00
Market Price (indicative) · Mar 2026
↓ Price vs intrinsic
Reference price only. Not an official exchange feed.
53
/ 100
Mostly Foam — Est. 47% Speculation
Updated: Mar 2026 · Model: DCF v1.0
Not investment advice · Model-based estimate
Estimated Value (Beer)
$40.00
53%
Est. Speculation Premium (Foam)
$35.00
47%
🍺 53% Est. Fundamental Value 🫧 47% Est. Speculation
Track Score Alerts (Pro) See Model Assumptions ↓

Key Financials

TTM
Revenue$4B
Net Income$100M
Free Cash Flow$200M
P/E Ratio120.0x
EPS (TTM)$0.20
Market Cap$11B
Total Debt$500M
Cash & Equiv.$2B

DCF Valuation

Model Estimate
$40
Est. intrinsic value (DCF model)
vs $75.00 market price
Our model suggests the current price is ~88% above the estimated intrinsic value. The market may be pricing in growth beyond current fundamentals.
WACC10.0%
Growth Rate (5yr)15%
Terminal Growth3%
Margin of Safety-88%

Model output varies with assumptions. This is not a price target or investment recommendation.

Score History — 90 Days

Pro
90d Low
35
90d High
68
Zone Changes
2

Roku Inc. Stock Valuation Analysis — Beer Score Breakdown

Roku Inc.'s Beer Score of 53 means that, according to our DCF model, more than half of its current $75.00 stock price is supported by the company's existing fundamentals — revenue, earnings, free cash flow, and assets. The remaining 47% represents an estimated premium the market places on future growth expectations.

Investors buying at this level are betting that future earnings will grow fast enough to close the gap between price and our model estimated intrinsic value.

How Beer Score Is Calculated for ROKU

We pull Roku Inc.'s latest 10-K and 10-Q filings from SEC EDGAR, run a DCF analysis using a 10.0% WACC and 15% revenue growth rate over 5 years with 3% terminal growth, then compare the resulting model estimate ($40) against the current market price ($75.00). The Beer Score of 53 represents the ratio: $40 ÷ $75.00 = 53%. Model output varies with assumptions. Learn more about our methodology →

Important Information

Beer Score is an educational indicator, not investment advice. It measures the model-estimated gap between a stock's current market price and an estimated intrinsic value derived from public financial data. A low Beer Score does not mean "sell" and a high score does not mean "buy." Past Beer Score patterns do not predict future price movements. Model output varies with assumptions (WACC, growth rate, terminal growth, margins).

Prices shown are indicative reference prices for educational purposes only and are not sourced from an official exchange feed. Data sources include SEC EDGAR filings (10-K and 10-Q), indicative market price data, and proprietary DCF models. Scores update daily after market close. For the full ranking of all stocks, visit the Beer Score Heatmap or read Today's Foam Report.

Track ROKU's Beer Score Over Time

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About This Valuation

Why does Roku Inc. have a Beer Score of 53?
Roku Inc. (ROKU) scores 53 because the stock is currently trading roughly 88% above its estimated intrinsic value of $40. The Beer Score reflects that 53% of the price is backed by estimated fundamental value.
Is ROKU overvalued or undervalued?
Based on our DCF model, Roku Inc. appears significantly overvalued. The estimated intrinsic value of $40 compared to the current price of $75.00 carries a 47% speculation premium. This is a model-based estimate using 10.0% WACC — not a buy or sell recommendation.
What assumptions drive the $40 intrinsic value estimate?
The DCF model uses a 10.0% weighted average cost of capital and projects 15% annual revenue growth over five years. Terminal growth is set at 3%. The model is most sensitive to the growth rate and WACC inputs — small changes in either significantly alter the output.

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