Roku EBITDA vs. Revenue
| R35 Stock | EUR 80.88 2.33 2.97% |
For Roku profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Roku to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Roku Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Roku's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Roku Inc over time as well as its relative position and ranking within its peers.
Roku |
Roku Inc Revenue vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Roku's current stock value. Our valuation model uses many indicators to compare Roku value to that of its competitors to determine the firm's financial worth. Roku Inc is currently regarded as top stock in ebitda category among its peers. It also is currently regarded number one company in revenue category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Roku's earnings, one of the primary drivers of an investment's value.Roku Revenue vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Roku |
| = | (382.96 M) |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Roku |
| = | 3.13 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Roku Revenue vs Competition
Roku Inc is currently regarded number one company in revenue category among its peers. Market size based on revenue of Pay TV industry is at this time estimated at about 35.06 Billion. Roku holds roughly 3.13 Billion in revenue claiming about 9% of equities listed under Pay TV industry.
Roku Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Roku, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Roku will eventually generate negative long term returns. The profitability progress is the general direction of Roku's change in net profit over the period of time. It can combine multiple indicators of Roku, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Its platform allows users to discover and access various movies and TV episodes, as well as live sports, music, news, and others. The company was founded in 2002 and is headquartered in Los Gatos, California. ROKU INC operates under Pay TV classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1111 people.
Roku Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Roku. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Roku position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Roku's important profitability drivers and their relationship over time.
Use Roku in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Roku position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Roku will appreciate offsetting losses from the drop in the long position's value.Roku Pair Trading
Roku Inc Pair Trading Analysis
The ability to find closely correlated positions to Roku could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Roku when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Roku - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Roku Inc to buy it.
The correlation of Roku is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Roku moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Roku Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Roku can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Roku position
In addition to having Roku in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Steel Works Etc theme has 54 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Steel Works Etc Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Roku Stock
When determining whether Roku Inc is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Roku Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Roku Inc Stock. Highlighted below are key reports to facilitate an investment decision about Roku Inc Stock:Check out Your Equity Center. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
To fully project Roku's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Roku Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Roku's income statement, its balance sheet, and the statement of cash flows.