D/E 0.19 — less debt than most Communication Services peers (≈25th pctile)
P/E64.3xC
P/E 64.3 — expensive vs Communication Services peers (≈90th pctile)
PEG1.04B+
PEG 1.04 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 57.3
Quality0.56
Growth0.98
Value0.35
Why this score
Diluting shareholders
Entry · Margin of safety
52-week rangeNear 52-week high
1% off the 12-month high
vs DCF fair value136% aboveest. fair value ~$64
What the price assumes: free cash flow compounding at ~40% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability52% · Agross profit ÷ total assets (Novy-Marx)
ROIC7.6% · C+return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Entertainment · market cap $22.5b. Trading near 52-week high of $153.54 — momentum setup, limited technical margin of safety. Revenue growing +19%, comfortably above the S&P median. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $158.41 (implying +4% upside).
Moat
ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 200% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Trailing P/E 64.3x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Trading within 1% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 2.04 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon
1-3 yr $158.41 (21-analyst consensus) — fundamentals + valuation re-rating. 5 yr $231.92 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $344.04 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
ROKU vs the Top Picks average
Pillar
ROKU
Book avg
Diff
Quality
0.56
0.83
-0.28
Growth
0.98
0.92
+0.06
Value
0.35
0.75
-0.40
Averaged across the 30 names in today's Top Picks (mean score 82.4). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · ROKU
Trend
-0.2 over 37 daily scores
From 57.5 (Jun 22) → 57.3 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · ROKU
$
%
%
Shares to buy
13
Position size
$1,974
3.9% of portfolio
Stop price
$113.88
25% below $151.84
$ at risk if stopped
$493.48
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Roku, Inc. (ROKU): score, valuation & FAQ
Roku, Inc. (ROKU) is a Entertainment company that scores 57.3 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A-), Rev (B+) and PEG (B+). On valuation, ROKU sits about 136% above our discounted-cash-flow fair value — the current price implies roughly 40% annual free-cash-flow growth over the next decade.
Is ROKU a good stock to buy?
Bull Rankings scores ROKU 57.3 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (A-), Rev (B+) and PEG (B+). A score is a quantitative screen of Roku, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does ROKU score 57.3 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). ROKU earns its highest marks on D/E (A-), Rev (B+) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is ROKU overvalued or undervalued?
Based on $151.84, ROKU sits about 136% above our discounted-cash-flow fair value — the current price implies roughly 40% annual free-cash-flow growth over the next decade. It trades at a 64.3x× P/E (graded C). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in ROKU?
Trailing P/E 64.3x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Trading within 1% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 2.04 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.