Roblox (RBLX) Is Overvalued and Burning Cash

Roblox logged a -1.82% change during today's afternoon session, and is now trading at a price of $42.07 per share. On average, analysts give it a target price of $41.86.

Roblox Corporation develops and operates an online entertainment platform. Before considering an investment in Roblox, make sure to consider the following:

  • Roblox has moved -10.62% over the last year.

  • Based on its trailing earning per share of -1.47, Roblox has a trailing 12 month Price to Earnings (P/E) ratio of -28.62

  • RBLX has a forward P/E ratio of 192.31.

  • The company has a price to earnings growth (PEG) ratio of 8.18 — a number between 0 and 1 signifying that Roblox is fairly valued compared to its estimated growth potential

  • Its Price to Book (P/B) ratio is 46.98

  • The large-cap company is based in the United States.

  • Here's an overview of the company's last 2 years of cash flows:

Date Reported Cash Flow from Operations (k) Capital Expenditures (k) Free Cash Flow (k) YoY Growth
2022-12-31 $369,296 $427,663 -$58,367 -110.46%
2021-12-31 $659,109 $101,129 $557,980 n/a
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.