* Note: Prices are in Million (M) USD.
Description:
Roblox Corporation develops and operates an online entertainment platform. The company is headquartered in San Mateo, California.
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:
Message: Cannot calculate payout ratio because EPS is either 0 or negative.
Using default values for calculation.
Based on default values, 1 points 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: $136
52-Week Low: $38
Threshold Price (15% Above 52-Week Low): $43
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: $92,091 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 Buffet's Owners' Earnings:
Latest Positive Owners' Earnings (FCF/Share) (2024-12-31): $0.99
Note: Many highly growing companies reinvest heavily back into the business,
so their Owners' Earnings may appear very low. In such cases, other criteria should
be considered to assess the company’s true worth.
Value-Trade has assigned 16 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) 17.61. Based on these 5 values, average assigned is 19.12. The fair value of Roblox Corp (RBLX) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
