Stock fact sheet · data as of
Roku, Inc. (ROKU): fair value, margin of safety and Wheel Score
Communication Services · Entertainment · United States · High Growth
Is ROKU undervalued?
At 152.57 (close of 16 Oct 2026), ROKU trades 46% over the GLS average fair value of 104.70, with 1 of 7 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between EPV (26.67) and Payback Time (220.77). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files ROKU under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for ROKU
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 32.10 | -79% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 132.55 | -13% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 57.58 | -62% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 146.96 | -4% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 116.28 | -24% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 220.77 | +45% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 26.67 | -83% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 12.30 | -92% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 161.38 | +6% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Roku, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 2.5%, ROE 3.3%, ROA 2.0% - with debt at 0.33 times equity and a free-cash-flow yield of 4.1%.
Roku, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Advertising 50%, Subscriptions 41%, Devices 10% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 2.5% |
|---|---|---|---|
| GLS Moat | 3.5 / 10 | ROE | 3.3% |
| Debt / equity | 0.33 | ROA | 2.0% |
| Free-cash-flow yield | 4.1% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 47: Weak
With a Wheel Score of 47 Roku, Inc. sits in the Weak band. The parts - Value 0/25, Health 16/20, Moat 5/15, Premium 9/20, Stability 17/20 - show where: Value (0/25) scores lowest.
Implied volatility is 24% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (9 of 20 points). The option chain is deep: 82,720 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 1.8M shares a day on a market cap of $20.2B, with a beta of 2.05 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -46% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 5 / 15 | moat 3.5/10 | |
| Premium | 9 / 20 | implied volatility 24% | |
| Stability | 17 / 20 | 1.8M shares/day, $20.2B cap, beta 2.05 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (after the close), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Entertainment
The 12 companies below are the closest to Roku, Inc. by market cap within the Entertainment industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| FWONA Formula One Group | 83.32 | 83.10 | -0% | 60Fair | $20.9B |
| FWONB Formula One Group | 85.00 | 69.04 | -23% | 33No options | $21.0B |
| FWONK Liberty Media Corporation | 90.81 | 73.34 | -24% | 56Fair | $22.8B |
| FOX Fox Corporation | 57.14 | 59.46 | +4% | 75Good | $25.4B |
| WMG Warner Music Group Corp. | 28.91 | 23.45 | -23% | 63Fair | $15.1B |
| FOXA Fox Corporation | 63.98 | 58.37 | -10% | 74Good | $27.0B |
| TKO TKO Group Holdings, Inc. | 172.38 | 215.97 | +20% | 80Prime | $12.6B |
| LYV Live Nation Entertainment, Inc. | 172.51 | 59.90 | -188% | 53Fair | $40.2B |
| MSGS Madison Square Garden Sports Corp. | 404.66 | 18.83 | -2049% | 53Fair | $9.7B |
| LLYVA Liberty Live Group | 96.44 | 120.78 | +20% | 45Weak | $9.2B |
| LLYVK Liberty Live Group | 99.66 | 120.73 | +17% | 45Weak | $9.2B |
| CNK Cinemark Holdings, Inc. | 38.52 | 59.12 | +35% | 80Prime | $4.5B |
⚖ Compare ROKU with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about ROKU
Is ROKU undervalued right now?
No: at 152.57 the stock trades 46% above the GLS average fair value of 104.70 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of ROKU and what does it mean?
ROKU scores 47 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for ROKU?
104.70 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Roku, Inc. report earnings next?
The next earnings report is due on 4 Nov 2026 (after the close), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ROKU have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 82,720 open interest across all expiries and implied volatility of 24% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.