Roku, Inc. (ROKU) Stock

Roku, Inc. (ROKU) is a Communication Services stock trading at $143.31 (as of 2026-07-15), with a market capitalization of $21.64B and a trailing P/E of 107.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Roku, Inc. operates a television streaming platform through two segments: Platform and Player. The Platform provides ways to discover and watch content and supports advertising, content distribution, subscriptions, billing, and other transactions, while the Player segment includes Roku-branded smart TVs, streaming devices, and audio products sold via retailers and direct-to-customer channels.

Understand Roku, Inc.: how it makes money

Roku runs a TV streaming platform, it makes money through its Platform business (ads plus content discovery and access, content distribution, subscriptions and billing, and other commerce and sponsorships) and also through its Player and device activities (including manufacturing, selling, and licensing smart TVs under the Roku TV name).

Roku’s profit engine is its Platform, it monetizes viewer engagement through advertising and subscription and billing services, while device sales and licensing are comparatively smaller supplemental revenue streams.

Revenue by segment (latest quarter)
Platform	$1.1B
Player	$0.1B

Business quality (Mixed): Good qualitative clarity on what Roku sells, but the provided segment revenue numbers are inconsistent across candidates, so only a close-to-total two segment split was used.

Valuation: At 100× earnings, ROKU trades 468% above the Communication average (18×). Note: one-time items can distort reported P/E.

Bull case

Platform monetization breadth: Roku monetizes the platform through digital and video advertising, content distribution, subscription and billing services, other commerce transactions, and brand sponsorships.
Engagement can support multiple revenue lines: Because the platform supports discovery and access to movies and TV episodes and live TV and sports, changes in engagement (active accounts and streaming hours) can translate into advertising and subscription related revenue.

Bear case

Revenue mix depends on platform monetization: A large part of Platform monetization is tied to advertising and subscriptions and billing services, which can be sensitive to changes in advertiser demand and consumer subscription behavior.
Device exposure is a smaller but distinct risk: Roku also manufactures, sells, and licenses smart TVs under the Roku TV name, device and licensing demand can differ from platform usage trends.

Valuation — source: SEC EDGAR (first-party)
Price	$143.31
Market Cap	$21.64B
P/E Ratio	107.4
EV / EBITDA	131.8
Price / Book	8.10
Price / Sales	4.36
FCF Yield	2.5%
DCF Value (model)	$30.81
DCF Upside vs Price	-78.5%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$4.74B
Net Margin	1.9%
Revenue Growth (YoY)	22.4%
EPS Growth (YoY)	-405.3%
FCF Growth (YoY)	43.3%

Financial Health — source: SEC EDGAR
Altman Z-Score	8.34 (safe)

Valuation vs Sector & Industry
Stock P/E	107.4
Sector P/E (Communication Services)	22.7
Industry P/E (Communication)	15.9
vs Sector	373.8%
vs Industry	575.3%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	FMR LLC ($1.61B)
Institutional Holders Tracked	10
Congressional Trades (recent)	10

Company
Sector	Communication Services
Industry	Communication
CEO	Anthony J. Wood
Employees	3,340
Country	US
IPO Date	2017-09-28

Related Companies (Business model: Telecom Carrier; 8 closest by market cap; US-domiciled)

Data as of 2026-07-15.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.