Meta Platforms, Inc.

NasdaqGS:META Stock Report

Market Cap: US$1.4t

Meta Platforms Valuation

Is META undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of META when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: META ($559.14) is trading below our estimate of fair value ($804.01)

Significantly Below Fair Value: META is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for META?

Key metric: As META is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for META. This is calculated by dividing META's market cap by their current earnings.
What is META's PE Ratio?
PE Ratio25.4x
EarningsUS$55.54b
Market CapUS$1.42t

Price to Earnings Ratio vs Peers

How does META's PE Ratio compare to its peers?

The above table shows the PE ratio for META vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.5x
NFLX Netflix
49.3x15.9%US$383.6b
GOOGL Alphabet
21.4x10.9%US$2.1t
MSFT Microsoft
34.3x12.6%US$3.1t
AAPL Apple
37.1x10.2%US$3.5t
META Meta Platforms
25.4x10.9%US$1.4t

Price-To-Earnings vs Peers: META is good value based on its Price-To-Earnings Ratio (25.4x) compared to the peer average (35.5x).

Price to Earnings Ratio vs Industry

How does META's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CHR Cheer Holding
0.7xn/aUS$26.33m
MI NFT
2.9xn/aUS$12.98m
No more companies available in this PE range
META 25.4xIndustry Avg. 23.4xNo. of Companies5PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: META is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the US Interactive Media and Services industry average (23.4x).

Price to Earnings Ratio vs Fair Ratio

What is META's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

META PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.4x
Fair PE Ratio35x

Price-To-Earnings vs Fair Ratio: META is good value based on its Price-To-Earnings Ratio (25.4x) compared to the estimated Fair Price-To-Earnings Ratio (35x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst META forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$559.14
US$648.35
+16.0%
8.6%US$811.00US$475.00n/a61
Nov ’25US$567.16
US$643.64
+13.5%
9.0%US$811.00US$475.00n/a61
Oct ’25US$576.47
US$589.15
+2.2%
11.1%US$811.00US$382.00n/a60
Sep ’25US$521.31
US$569.47
+9.2%
9.0%US$647.00US$382.00n/a56
Aug ’25US$497.74
US$559.76
+12.5%
9.7%US$647.00US$382.00n/a56
Jul ’25US$504.68
US$524.29
+3.9%
9.5%US$634.00US$360.00n/a55
Jun ’25US$466.83
US$520.98
+11.6%
9.2%US$634.00US$360.00n/a56
May ’25US$439.19
US$524.01
+19.3%
8.2%US$634.00US$400.00n/a56
Apr ’25US$491.35
US$524.33
+6.7%
7.6%US$609.00US$398.00n/a54
Mar ’25US$502.30
US$516.60
+2.8%
10.2%US$575.00US$245.00n/a55
Feb ’25US$394.78
US$393.74
-0.3%
13.0%US$470.00US$175.00n/a53
Jan ’25US$353.96
US$377.65
+6.7%
11.2%US$435.00US$175.00n/a52
Dec ’24US$324.82
US$374.16
+15.2%
11.2%US$435.00US$175.00n/a51
Nov ’24US$311.85
US$372.39
+19.4%
11.2%US$425.00US$175.00US$567.1651
Oct ’24US$300.21
US$364.36
+21.4%
14.1%US$435.00US$100.00US$576.4751
Sep ’24US$296.38
US$362.16
+22.2%
15.4%US$435.00US$100.00US$521.3153
Aug ’24US$322.71
US$356.72
+10.5%
17.4%US$435.00US$100.00US$497.7451
Jul ’24US$286.98
US$279.13
-2.7%
17.8%US$360.00US$100.00US$504.6852
Jun ’24US$272.61
US$268.28
-1.6%
17.0%US$350.00US$100.00US$466.8352
May ’24US$243.18
US$261.78
+7.7%
17.7%US$350.00US$100.00US$439.1953
Apr ’24US$211.94
US$223.89
+5.6%
17.4%US$305.00US$80.00US$491.3553
Mar ’24US$173.42
US$210.49
+21.4%
17.2%US$285.00US$80.00US$502.3051
Feb ’24US$153.12
US$154.39
+0.8%
23.0%US$260.00US$80.00US$394.7851
Jan ’24US$120.34
US$154.59
+28.5%
26.7%US$274.70US$80.00US$353.9652
Dec ’23US$120.44
US$151.87
+26.1%
26.9%US$274.70US$80.00US$324.8250
Nov ’23US$95.20
US$164.55
+72.9%
37.3%US$466.00US$80.00US$311.8550

Analyst Forecast: Target price is less than 20% higher than the current share price.

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