Roblox Corporation Intrinsic Value – Roblox Corporation Shares Rise as Investors Show Strong Demand, Stock Price Falls by -0.76% to $39.65
July 28, 2023
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Roblox Corporation ($NYSE:RBLX), the leading provider of user-generated online gaming experiences, has seen its stock price rise on Thursday, July 27th despite a slight decrease of -0.76%. The stock closed at $39.65, showing that investors have continued to show strong demand for the company’s shares. This comes as the company continues to expand its reach within the gaming industry, with millions of users playing its popular platforms such as Roblox Studio and Roblox Studio Mobile. Its popularity has helped it become one of the most valuable startups in the world, valued at over $38 billion.
As such, investors have continued to show faith in Roblox’s future prospects, leading to the stock price increase despite Thursday’s small dip. Roblox Corporation is now one of the most recognizable names in the gaming industry, and is likely to see further growth as more users flock to its platforms. With its continued success, the company will be sure to remain a strong investment for many years to come.
Analysis – Roblox Corporation Intrinsic Value
At GoodWhale, we recently conducted an analysis of ROBLOX CORPORATION‘s wellbeing. Our proprietary Valuation Line provided an estimated fair value of ROBLOX CORPORATION stocks at around $67.9. A comparison of the fair value against the current market price of $37.9 indicates that the stocks are undervalued by 44.1%. This shows a great opportunity for investors to purchase ROBLOX CORPORATION stocks at discounted prices and benefit from potential future gains. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Roblox Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.34k | -1.03k | -44.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Roblox Corporation. More…
| Operations | Investing | Financing |
| 386.64 | -2.74k | 44.34 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Roblox Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.47k | 5.23k | 0.41 |
Key Ratios Snapshot
Some of the financial key ratios for Roblox Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 63.6% | – | -42.7% |
| FCF Margin | ROE | ROA |
| -3.5% | -225.6% | -11.4% |
Peers
The company was founded in 2004 and is headquartered in San Mateo, California. Roblox’s flagship product is Roblox Studio, a game creation platform that allows users to design and publish their own games. The company also operates roblox.com, a social networking and online gaming platform with over 30 million active monthly users. Roblox’s competitors include Meta Platforms, Electronic Arts, and Zynga.
– Meta Platforms Inc ($NASDAQ:EA)
Electronic Arts Inc. is an American video game company based in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization, after Activision Blizzard. EA develops and publishes games primarily for consoles such as the PlayStation 4, Xbox One, and Nintendo Switch, personal computers (PC), and online platforms such as Origin and EA Sports Ultimate Team. The company has over 350 million registered players and operates in 75 countries.
Summary
Roblox Corporation‘s stock price fell by -0.76% to $39.65 on Thursday, July 27, indicating an overall positive market sentiment towards the company. This suggests that investors are showing strong demand for the company’s shares, as the decreased stock value is a relatively minor event. Roblox Corporation has thus established itself as a reliable and valuable investment for financial analysts and investors alike.
