We’ve recently updated our valuation analysis.

Meta Platforms Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue2.9x
Enterprise Value/EBITDA7.1x
PEG Ratio1x

Price to Earnings Ratio vs Peers

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

META PE Ratio vs 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.
CompanyPEEstimated GrowthMarket Cap
Peer Average41.4x
AMZN Amazon.com
100.8x53.0%US$1.2t
GOOGL Alphabet
17.6x12.9%US$1.3t
MSFT Microsoft
24.4x11.3%US$1.8t
AAPL Apple
23x3.1%US$2.3t
META Meta Platforms
10.9x11.1%US$366.6b

Price-To-Earnings vs Peers: META is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (41.4x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: META is good value based on its Price-To-Earnings Ratio (10.9x) compared to the US Interactive Media and Services industry average (23.2x)


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 Ratio10.9x
Fair PE Ratio35.3x

Price-To-Earnings vs Fair Ratio: META is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (35.3x).


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 ($136.41) is trading below our estimate of fair value ($890.3)

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


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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