Facebook (NasdaqGS:FB) - Share price, News & Analysis

FB fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

FB Overview

Facebook, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide.

Rewards

Trading at 30.8% below our estimate of its fair value

Earnings are forecast to grow 13.97% per year

Earnings grew by 65.6% over the past year

Risk Analysis

No risks detected for FB from our risk checks.

Facebook Competitors

Alphabet

NasdaqGS:GOOG.L

US$1.9t

Snap

NYSE:SNAP

US$132.2b

Match Group

NasdaqGS:MTCH

US$44.5b

NYSE:PINS

US$34.9b

Price History & Performance

Summary of all time highs, changes and price drops for Facebook
Historical stock prices
Current Share Price	US$353.58
52 Week High	US$244.61
52 Week Low	US$384.33
Beta	1.3
1 Month Change	-5.11%
3 Month Change	0.48%
1 Year Change	37.68%
3 Year Change	117.67%
5 Year Change	174.58%
Change since IPO	824.83%

Recent News & Updates

Sep 23

Facebook Stock: Now's Your Chance To Buy

FB has sold off hard in the past three weeks. The selloff looks overdone and Facebook is a buy. While fundamental issues and threats exist, the stock is quite reasonably valued.

Sep 15

Will Metaverse Be The Gamechanger For Facebook?

Facebook has an ambitious vision to build the metaverse, the next iteration of the internet. Their three pillars strategy will be the key to achieving this vision. Facebook’s focus on creating personalized experiences for consumers and creators will attract businesses to opt for Facebook to shift their digital presence. With a forward EV/EBIT multiple of 19 times, Facebook is fairly valued now excluding the metaverse growth opportunity.

Sep 09

Facebook: Underpromising, Overachieving, Unloved

Facebook's earnings releases and quarterly forecasts play down amazing results and may scare away some skeptical investors. Facebook appears to offer more value than any other company within Big Tech. A simple model shows that FB's stock price is below the range of its reasonable valuations. Besides investors, nobody seems to like Facebook, but the company keeps delivering each quarter.

Sep 03

Facebook: Despite Being Near All-Time Highs, Plenty Of Upside Ahead

Facebook has a leading position in social media, being a cash cow business that allows it to invest in new technologies, such as the metaverse. The company is very well-run with a clear long-term strategy and its financial figures are quite strong. Its share price is near all-time highs, but my price target is $533 per share by end-2024, thus there is still significant upside over the next three years.

Sep 02

This is why Facebook's (NASDAQ:FB) high Returns can Convert into double-digit Revenue Growth

Facebook (NASDAQ:FB) has had a great run on the share market, with its stock up by a significant 14% over the last three months. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Facebook's return measures, particularly on its ROE.

Aug 24

Will Facebook Stock Ever Split?

Facebook is an attractive growth name trading at an inexpensive valuation, especially when we account for FB's cash pile. The company had planned a stock split in the past but eventually canceled it. A stock split could become beneficial in the future, due to factors such as index inclusion. Investors shouldn't buy based on stock splits alone. FB seems like an attractive choice with or without a stock split.

Shareholder Returns

	FB	US Interactive Media and Services	US Market
7D	-0.6%	-0.09%	0.1%
1Y	37.7%	70.1%	35.3%

Return vs Industry: FB underperformed the US Interactive Media and Services industry which returned 70.1% over the past year.

Return vs Market: FB exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is FB's price volatile compared to industry and market?
FB volatility
FB Beta	1.3
Industry Beta	1.12
Market Beta	1

Stable Share Price: FB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: FB's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	63,404	Mark Zuckerberg	https://investor.fb.com

Facebook, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide. The company’s products include Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing photos, videos, and private messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application that is used by people and businesses to communicate in a private way. It also provides Facebook Reality Labs, an augmented and virtual reality product that help people feel connected, anytime, and anywhere.

Facebook Fundamentals Summary

How do Facebook's earnings and revenue compare to its market cap?
FB fundamental statistics
Market Cap	US$995.15b
Earnings (TTM)	US$38.96b
Revenue (TTM)	US$104.79b

25.6x

P/E Ratio

9.5x

P/S Ratio

Is FB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FB income statement (TTM)
Revenue	US$104.79b
Cost of Revenue	US$19.93b
Gross Profit	US$84.86b
Expenses	US$45.90b
Earnings	US$38.96b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	13.82
Gross Margin	80.98%
Net Profit Margin	37.18%
Debt/Equity Ratio	0%

How did FB perform over the long term?

See historical performance and comparison

Valuation

Is Facebook undervalued compared to its fair value and its price relative to the market?

30.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: FB ($352.96) is trading below our estimate of fair value ($509.96)

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

Price To Earnings Ratio

PE vs Industry: FB is good value based on its PE Ratio (25.5x) compared to the US Interactive Media and Services industry average (41.3x).

PE vs Market: FB is poor value based on its PE Ratio (25.5x) compared to the US market (17.9x).

Price to Earnings Growth Ratio

PEG Ratio: FB is poor value based on its PEG Ratio (1.8x)

Price to Book Ratio

PB vs Industry: FB is overvalued based on its PB Ratio (7.2x) compared to the US Interactive Media and Services industry average (3.9x).

Future Growth

How is Facebook forecast to perform in the next 1 to 3 years based on estimates from 45 analysts?

14.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FB's forecast earnings growth (14% per year) is above the savings rate (2%).

Earnings vs Market: FB's earnings (14% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: FB's earnings are forecast to grow, but not significantly.

Revenue vs Market: FB's revenue (15.2% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: FB's revenue (15.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FB's Return on Equity is forecast to be high in 3 years time (21.7%)

Past Performance

How has Facebook performed over the past 5 years?

24.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FB has high quality earnings.

Growing Profit Margin: FB's current net profit margins (37.2%) are higher than last year (31.3%).

Past Earnings Growth Analysis

Earnings Trend: FB's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: FB's earnings growth over the past year (65.6%) exceeds its 5-year average (24.3% per year).

Earnings vs Industry: FB earnings growth over the past year (65.6%) exceeded the Interactive Media and Services industry -5.3%.

Return on Equity

High ROE: FB's Return on Equity (28.2%) is considered high.

Financial Health

How is Facebook's financial position?

Financial Position Analysis

Short Term Liabilities: FB's short term assets ($80.7B) exceed its short term liabilities ($14.9B).

Long Term Liabilities: FB's short term assets ($80.7B) exceed its long term liabilities ($17.5B).

Debt to Equity History and Analysis

Debt Level: FB is debt free.

Reducing Debt: FB had no debt 5 years ago.

Debt Coverage: FB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FB has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Facebook current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FB's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FB's dividend in 3 years as they are not forecast to pay a notable one for the US market.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure

CEO

Mark Zuckerberg (37 yo)

17.17yrs

Tenure

US$25,288,265

Compensation

Mr. Mark Elliot Zuckerberg founded Facebook, Inc. in 2004 and its Chief Executive Officer since July 2004 and Chairman since January 2012. Mr. Zuckerberg is responsible for setting the overall direction an...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD25.29M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: FB's management team is seasoned and experienced (6 years average tenure).

Board Members

Experienced Board: FB's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2021/09/27 22:08
End of Day Share Price	2021/09/27 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data