Is Roku, Inc. overvalued or undervalued?

As of 28 July 2022, Roku, Inc. has moved from a valuation grade of very expensive to risky, indicating a significant shift in its market perception. The company is currently assessed as overvalued, especially given its negative performance indicators. Key ratios include a Price to Book Value of 4.56, an EV to EBITDA of 98.22, and a ROCE of -49.00%.
In comparison to its peers, Roku's valuation metrics are starkly unfavorable; for instance, SharkNinja, Inc. has a P/E ratio of 25.56 and an EV to EBITDA of 16.05, while Whirlpool Corp. boasts a P/E of 22.10 and an EV to EBITDA of 13.29. This highlights the disparity in valuation, reinforcing the notion that Roku is overvalued. Notably, while Roku has outperformed the S&P 500 over the past year with a return of 48.71% compared to the S&P's 10.26%, the long-term outlook remains concerning given its substantial losses and high valuation ratios.