Think Roku Stock Is Expensive? This Chart Might Change Your Mind.
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Roku's stock appears expensive at 100 times forward earnings, yet its impressive growth challenges this perception. Despite an 81% stock decline over four years, revenue surged 89%, averaging 17.3% annual growth. Compared to Netflix and Meta, which have higher price-to-sales ratios, Roku's 2.9 multiple suggests it is undervalued. The analysis indicates that Roku's valuation should reflect its strong business growth rather than just profit metrics, highlighting its potential for a higher market value.
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