Is Roku, Inc. (ROKU) overvalued or undervalued?
Updated Sep 3, 2026 · auto-modeled from live data · educational, not advice
At a recent price of $157.70, Roku, Inc. (ROKU) trades 57% above TickerWorth's blended fair value of $68.55 per share. For this company that blend leans on peer multiples: our discounted-cash-flow model holds margins flat and fades growth toward a long-run rate, which systematically understates a business growing this fast, so its figure (about $8.00) is shown as a reference beside the range rather than blended into it. Our estimate sits below the market — read that as a statement about how the market prices ROKU against comparable companies, not as a finding that it is overvalued on cash flow. This is an educational model, not a price target or a recommendation.
The valuation discounts Roku, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 14.2%, with a long-run terminal growth rate of 2.5%. About 75% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, ROKU's modeled DCF value ranges from about $6.24 to $9.14 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Roku, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of ROKU's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind ROKU's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $5,209,110,000 | Live feed — totalRevenue (TTM) |
| Base EBIT margin | 9.1% | Computed — reported operating margin exceeded the EBITDA margin (impossible); held to 9.1% so D&A stays positive |
| Forecast revenue growth | 26% → 21% → 15% → 10% → 4% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 4.8% | Live feed — US 10-year Treasury yield (^TNX) |
| Beta | 2.04 | Live feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) |
| Terminal growth | 2.5% | Assumption — TickerWorth house default 2.5%, held below WACC |
| Diluted shares | 148M | Live feed — sharesOutstanding |
| Market price | $157.70 | Delayed quote · as of 2026-09-03 07:24 UTC |
Auto-modeled from live market data — this is NOT a hand-researched model. Every growth, margin and capital assumption is an algorithmic ESTIMATE, cached and refreshed periodically.
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Most undervalued stocks (per our valuation) · All valued stocks · Interactive ROKU valuation & downloadable modelEducational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is an educational DCF tool, not a licensed investment adviser. Figures are estimates derived from public filings and market data and can be wrong.