* Note: Prices are in Million (M) USD.
Description:
Roblox Corporation is a leading online entertainment platform based in San Mateo, California, that enables users to create, share, and engage in immersive 3D experiences and games. By combining social networking elements with user-generated content, Roblox has cultivated a vibrant community of millions of developers and players, positioning itself as a significant player in the rapidly growing gaming and metaverse sectors. The company's innovative tools empower creators to monetize their work, fostering a dynamic economy while attracting a diverse audience across various demographics. With a strong focus on user engagement and continuous platform enhancements, Roblox is well-positioned for sustained growth in the evolving digital landscape.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $995 M
Debt : $1,144 M
EBITDA : $-685 M
Net Debt (Debt - Cash): $149 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Electronic gaming & multimedia
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $247 M
Average Revenue: $1,758 M
Revenue Converted To Free Cash Flow (%): 14.0%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $3,602 M
Revenue 5 Years Ago (2019-12-31): $508 M
Total Growth over 5 Years: 608.5%
5-Year Revenue CAGR (Historical): 47.9%
Forward 5-Year CAGR (Tapered): 24.0%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $647 M
Share Count 5 Years Ago (2020-12-31): $535 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-1.38
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-1.38
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 4 valid ROE years (max 20).Average ROE: -579.6%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $126.27
52-Week Low: $39.30
Threshold Price (15% Above 52-Week Low): $45.20
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $87,536 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $1.45
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $0.99
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 15 points to above Roblox Corp (RBLX) stock.
Fair Value PE 20, Industry Based PE 20, Growth Based PE 23.97, RCFC Based PE 14.04, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 5 values, average assigned is 19.24. The fair value of Roblox Corp (RBLX) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
