Roku, Inc. (ROKU)

If ROKU was worth being in the high $90:s with 60m subscribers it is surely worth more with 61.8m and 28% more revenue than a year ago.
For companies with double digit growth PEG is a better indicator than PE. Let me explain my understanding of that:
If a company is mature and just hlding its own in a mature market and paying a dividend, the PE ratio indicates what dividend yoeld it can afford to oay. For example a PE of 20 indicates it could afford to pay a 5% dividend.
For a company growing fadt in an evolving market however, such s PE gives no cfedit for future revenue and profit increases. Tje market doesn't wait till that growth happens - if they don't get in early somebody else will and they will miss out. So how much credit do you have to give to growth? If you expect 28% YOY growth should the OE be 28% higher? No: It's way more than that. You have to appreviate that the 28% growth is not just a growth in the ability to pay a future dividend - there is also gain from the appreciation of the stock which will in the long run follow the growth in revenue. So investors anticipate both types of reward and give growth stocks a much higher PE that takes into accoubt both the potential for dividends AND stock appreciation.
I have tried to do the math to show how PEG better describes the valuation of a growth stock like ROKU. but it's highly non-linear. Empirically it appears that a PEG of 1 to 2 is a good investment when the growth rate is in the 10% to 20% range and a PEG or 2 to 3 is a good investment when the growth rate is over 20% YOY.

With a growth rate of say 30% YOY, a PE of 60 to 90 is not overvalued for ROKU.
Note: Forcthe "E" of ROKU you don't use the bottom line necessarily as thete is no way s smart management lets the E get into +ve (taxable) territory when thete are better wsys to use the money than giving it to the government. Any sole proprietor learns that real quick!