Meta Platforms, Inc.

NasdaqGS:META Stock Report

Market Cap: US$1.2t

Meta Platforms Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • PM 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 ($471.75) is trading below our estimate of fair value ($569.97)

Significantly Below Fair Value: META is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

META 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/Revenue8.7x
Enterprise Value/EBITDA19.5x
PEG Ratio2.2x

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 Average33.5x
NFLX Netflix
46x16.9%US$248.9b
GOOGL Alphabet
23.8x11.9%US$1.8t
MSFT Microsoft
36.3x12.4%US$3.0t
AAPL Apple
27.8x4.7%US$2.8t
META Meta Platforms
30.8x14.1%US$1.2t

Price-To-Earnings vs Peers: META is good value based on its Price-To-Earnings Ratio (30.8x) compared to the peer average (33.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: META is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the US Interactive Media and Services industry average (21.9x).


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 Ratio30.8x
Fair PE Ratio37.7x

PM vs Fair Ratio: META is good value based on its Price-To-Earnings Ratio (30.8x) compared to the estimated Fair Price-To-Earnings Ratio (37.7x).


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 META forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$471.75
US$513.85
+8.9%
11.3%US$575.00US$245.00n/a54
Feb ’25US$394.78
US$393.45
-0.3%
12.9%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$175.00n/a51
Oct ’24US$300.21
US$364.36
+21.4%
14.1%US$435.00US$100.00n/a51
Sep ’24US$296.38
US$362.16
+22.2%
15.4%US$435.00US$100.00n/a53
Aug ’24US$322.71
US$356.72
+10.5%
17.4%US$435.00US$100.00n/a51
Jul ’24US$286.98
US$279.13
-2.7%
17.8%US$360.00US$100.00n/a52
Jun ’24US$272.61
US$268.28
-1.6%
17.0%US$350.00US$100.00n/a52
May ’24US$243.18
US$261.78
+7.7%
17.7%US$350.00US$100.00n/a53
Apr ’24US$211.94
US$223.00
+5.2%
17.4%US$305.00US$80.00n/a52
Mar ’24US$173.42
US$210.49
+21.4%
17.2%US$285.00US$80.00n/a51
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
Oct ’23US$135.68
US$221.59
+63.3%
22.7%US$466.00US$150.00US$300.2150
Sep ’23US$165.36
US$223.03
+34.9%
22.2%US$466.00US$150.00US$296.3850
Aug ’23US$159.93
US$226.52
+41.6%
23.4%US$466.00US$150.00US$322.7150
Jul ’23US$160.03
US$280.40
+75.2%
21.0%US$466.00US$180.00US$286.9849
Jun ’23US$188.64
US$285.57
+51.4%
19.0%US$466.00US$185.00US$272.6150
May ’23US$200.47
US$293.68
+46.5%
19.4%US$466.00US$195.00US$243.1850
Apr ’23US$224.85
US$326.00
+45.0%
16.9%US$466.00US$220.00US$211.9449
Mar ’23US$203.49
US$335.19
+64.7%
15.2%US$466.00US$220.00US$173.4248
Feb ’23US$319.00
US$401.38
+25.8%
9.4%US$466.00US$250.00US$153.1248

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


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