Meta Platforms Valuation

Q: What is the Fair Price of FB20 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FB20 (€20.4) is trading below our estimate of [[fair value]] (€31.31)

Is FB20 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 FB20 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FB20 (€20.4) is trading below our estimate of fair value (€31.31)

Significantly Below Fair Value: FB20 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FB20?

Key metric: As FB20 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FB20. This is calculated by dividing FB20's market cap by their current earnings.
What is FB20's PE Ratio?
PE Ratio	25.7x
Earnings	US$55.54b
Market Cap	US$1.42t

FB20 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	8.9x
Enterprise Value/EBITDA	17.6x
PEG Ratio	2.4x

Price to Earnings Ratio vs Peers

How does FB20's PE Ratio compare to its peers?

The above table shows the PE ratio for FB20 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	27.1x
G24 Scout24	34.9x	14.8%	€6.1b
GOOGL Alphabet	22.3x	10.9%	US$2.2t
700 Tencent Holdings	20.5x	11.3%	HK$3.7t
NWO New Work	30.7x	32.3%	€367.0m
FB20 Meta Platforms	25.7x	10.9%	€1.4t

Price-To-Earnings vs Peers: FB20 is good value based on its Price-To-Earnings Ratio (25.7x) compared to the peer average (27.4x).

Price to Earnings Ratio vs Industry

How does FB20's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: FB20 is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the European Interactive Media and Services industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is FB20'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.

FB20 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	25.7x
Fair PE Ratio	34.3x

Price-To-Earnings vs Fair Ratio: FB20 is good value based on its Price-To-Earnings Ratio (25.7x) compared to the estimated Fair Price-To-Earnings Ratio (34.3x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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