Aug. 2 at 6:36 AM
$ROKU is fundamentally undervalued given the company's long-term cash flow potential, margin expansion, and platform leverage. In the most conservative Bear scenario for 2030, Roku is projected to generate
$4.50 EPS. Applying a depressed 2030 forward P/E of just 31x—well below historical and peer levels—yields a target price of
$140, representing a 75% upside from today’s price. In Base and Bull scenarios, with EPS of
$9.50 and
$14.00 respectively, and applying reasonable multiples (37x–40x), target prices extend to
$350 and
$560. This implies a 4.4x to 7x return potential. The recent quarterly report confirms accelerating monetization of Roku’s 81M active accounts, improving ARPU trends, positive adjusted EBITDA, and early signs of operating leverage. Advertising secular tailwinds and connected TV adoption support robust revenue CAGR. At
$80, the stock is priced for stagnation, yet even in a low-growth regime, the embedded earnings power makes this a compelling asymmetric bet.
