Is Roku, Inc. overvalued or undervalued?

As of 28 July 2022, the valuation grade for Roku, Inc. has moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued given its current metrics, including a Price to Book Value of 4.56, an EV to EBITDA ratio of 98.22, and a negative ROCE of -49.00%. In comparison, Whirlpool Corp. has a P/E ratio of 37.42 and an EV to EBITDA of 14.17, while IMAX Corp. shows a P/E of 34.92 and an EV to EBITDA of 13.95, highlighting the significant disparity in valuation.
Roku's recent stock performance shows a 33.39% year-to-date return compared to the S&P 500's 12.22%, suggesting it has outperformed the benchmark in the short term. However, the long-term perspective is concerning, with a 5-year return of -38.21% compared to the S&P 500's 96.61%, reinforcing the notion that the stock may be overvalued relative to its peers and the broader market.