Roblox Corporation (RBLX) in San Mateo, Calif., develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds, while its Roblox Studio enables developers and creators to build, publish and operate 3D experiences and other content. The company’s revenue for its fiscal third quarter, ended Sept. 30, 2021, increased 102% year-over-year to $509.33 million. However, its loss from operations widened 50.3% to $77.44 million, while its net loss widened 52.2% year-over-year to $74 million.
The stock has declined 41.1% in price year-to-date to close yesterday’s trading session at $60.67. It is currently trading 57.1% below its 52-week high of $141.60. The stock looks overvalued at the current price level. In terms of forward EV/S and P/S, RBLX’s respective 13.45x and 12.89x are higher than 2.39x and 1.71x industry averages. In addition, its 61.28x forward P/B is 2,217.3% higher than the 2.64x industry average. So, we think it is best avoided now.
