Meta Platforms Valuation

Is FB2A 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 FB2A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FB2A (€581.7) is trading below our estimate of fair value (€990.7)

Significantly Below Fair Value: FB2A is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for FB2A?

Key metric: As FB2A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FB2A. This is calculated by dividing FB2A's market cap by their current earnings.
What is FB2A's PE Ratio?
PE Ratio27.2x
EarningsUS$55.54b
Market CapUS$1.51t

Price to Earnings Ratio vs Peers

How does FB2A's PE Ratio compare to its peers?

The above table shows the PE ratio for FB2A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.2x
G24 Scout24
35.7x15.0%€6.3b
GOOGL Alphabet
24.6x11.0%US$2.3t
700 Tencent Holdings
20.9x10.9%HK$3.8t
NWO New Work
31.7x32.3%€378.8m
FB2A Meta Platforms
27.2x10.6%€1.5t

Price-To-Earnings vs Peers: FB2A is good value based on its Price-To-Earnings Ratio (27.2x) compared to the peer average (28.3x).


Price to Earnings Ratio vs Industry

How does FB2A's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
FB2A 27.2xIndustry Avg. 15.1xNo. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FB2A is expensive based on its Price-To-Earnings Ratio (27.2x) compared to the European Interactive Media and Services industry average (15.1x).


Price to Earnings Ratio vs Fair Ratio

What is FB2A'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.

FB2A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.2x
Fair PE Ratio33.7x

Price-To-Earnings vs Fair Ratio: FB2A is good value based on its Price-To-Earnings Ratio (27.2x) compared to the estimated Fair Price-To-Earnings Ratio (33.7x).


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 FB2A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€581.70
€638.75
+9.8%
9.1%€790.24€462.84n/a61
Dec ’25€541.90
€618.37
+14.1%
8.5%€772.72€452.58n/a61
Nov ’25€524.50
€593.95
+13.2%
9.0%€748.39€438.33n/a61
Oct ’25€521.00
€532.24
+2.2%
11.1%€732.66€345.10n/a60
Sep ’25€471.60
€512.35
+8.6%
9.0%€582.11€343.69n/a56
Aug ’25€459.25
€518.73
+13.0%
9.7%€599.57€354.00n/a56
Jul ’25€469.35
€488.27
+4.0%
9.5%€590.44€335.27n/a55
Jun ’25€421.85
€485.66
+15.1%
9.2%€591.01€335.59n/a56
May ’25€405.60
€490.11
+20.8%
8.2%€592.98€374.12n/a56
Apr ’25€452.75
€488.15
+7.8%
7.6%€566.98€370.54n/a54
Mar ’25€463.80
€477.39
+2.9%
10.2%€531.36€226.40n/a55
Feb ’25€364.60
€363.14
-0.4%
13.0%€433.48€161.40n/a53
Jan ’25€324.10
€340.08
+4.9%
11.2%€391.72€157.59€568.2052
Dec ’24€297.20
€344.04
+15.8%
11.2%€399.98€160.91€541.9051
Nov ’24€295.45
€352.39
+19.3%
11.2%€402.18€165.60€524.5051
Oct ’24€284.65
€346.84
+21.8%
14.1%€414.08€95.19€521.0051
Sep ’24€274.95
€335.25
+21.9%
15.4%€402.68€92.57€471.6053
Aug ’24€293.70
€324.79
+10.6%
17.4%€396.07€91.05€459.2551
Jul ’24€263.35
€255.74
-2.9%
17.8%€329.83€91.62€469.3552
Jun ’24€252.45
€249.34
-1.2%
17.0%€325.29€92.94€421.8552
May ’24€216.80
€237.57
+9.6%
17.7%€317.63€90.75€405.6053
Apr ’24€195.36
€205.28
+5.1%
17.4%€279.65€73.35€452.7553
Mar ’24€164.48
€195.97
+19.1%
17.2%€265.34€74.48€463.8051
Feb ’24€139.68
€140.54
+0.6%
23.0%€236.68€72.82€364.6051
Jan ’24€111.12
€144.86
+30.4%
26.7%€257.42€74.97€324.1052

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


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/03 10:52
End of Day Share Price 2025/01/02 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Meta Platforms, Inc. is covered by 97 analysts. 63 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David HeasmanAccountability Research Corporation
Richard KramerArete Research Services LLP
Joseph BonnerArgus Research Company