Meta Platforms Stock Alpha and Beta Analysis

FB -  USA Stock  

USD 191.29  0.95  0.49%

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Meta Platforms. It also helps investors analyze the systematic and unsystematic risks associated with investing in Meta Platforms over a specified time horizon. Remember, high Meta Platforms' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please check Meta Platforms Backtesting, Meta Platforms Valuation, Meta Platforms Correlation, Meta Platforms Hype Analysis, Meta Platforms Volatility, Meta Platforms History and analyze Meta Platforms Performance.
  
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Please note that although Meta Platforms alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Meta Platforms did 0.15  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Meta Platforms stock's relative risk over its benchmark. Meta Platforms has a beta of 1.97  . Let's try to break down what Meta Platforms's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Meta Platforms will likely underperform.
Meta Platforms Enterprise Value over EBIT is projected to decrease significantly based on the last few years of reporting. The past year's Enterprise Value over EBIT was at 20.00. The current year Enterprise Value over EBITDA is expected to grow to 20.04, whereas Book Value per Share is forecasted to decline to 36.29.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Meta Platforms Quarterly Book Value per Share

45.221

Share

Meta Platforms Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Meta Platforms market risk premium is the additional return an investor will receive from holding Meta Platforms long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Meta Platforms. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Meta Platforms' performance over market.
α0.15   β1.97
90 days against DJI

Meta Platforms expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Meta Platforms' Buy-and-hold return. Our buy-and-hold chart shows how Meta Platforms performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Meta Platforms Market Price Analysis

Market price analysis indicators help investors to evaluate how Meta Platforms stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Meta Platforms shares will generate the highest return on investment. By understating and applying Meta Platforms stock market price indicators, traders can identify Meta Platforms position entry and exit signals to maximize returns.

Meta Platforms Return and Market Media

The median price of Meta Platforms for the period between Fri, Feb 18, 2022 and Thu, May 19, 2022 is 207.84 with a coefficient of variation of 6.54. The daily time series for the period is distributed with a sample standard deviation of 13.52, arithmetic mean of 206.92, and mean deviation of 11.12. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
      Timeline 
1
Sale by Newstead Jennifer of 330 shares of Meta Platforms02/24/2022
2
Filing03/01/2022
3
Meta Platforms exotic insider transaction detected03/18/2022
4
EPS Estimate03/31/2022
5
Elon Musk Brings Money, and Some Oomph, to U.S. Stock Market...04/04/2022
6
Metaverse Stocks To Buy Today 4 For Your April Watchlist - S...04/11/2022
7
Sale by Newstead Jennifer of 476 shares of Meta Platforms04/14/2022
8
Sale by Newstead Jennifer of 476 shares of Meta Platforms04/21/2022
9
Meta Platforms Stock Before Earnings Buy or Sell - The Motle...04/26/2022
10
EPS Reported04/27/2022
11
Amazons Biggest Drop Since 2006 Caps Miserable Month for Tec...04/29/2022
12
Top Stock Market News For Today May 3, 2022 - Nasdaq05/03/2022
13
You dont want to be shocked Its rank day and heres what that...05/06/2022
14
Sale by Newstead Jennifer of 311 shares of Meta Platforms05/12/2022
15
Stock market news today Wall Steet sizes up chances of a US ...05/16/2022

About Meta Platforms Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Meta Platforms has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2022 (projected)
Long Term Debt to Equity0.0027830.002856
Interest Coverage68.2154.75

Meta Platforms Upcoming Company Events

As portrayed in its financial statements, the presentation of Meta Platforms' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Meta Platforms' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Meta Platforms' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Meta Platforms. Please utilize our Beneish M Score to check the likelihood of Meta Platforms' management manipulating its earnings.
Upcoming Quarterly Report2nd of February 2022
Next Financial Report27th of April 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End2nd of February 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

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Please check Meta Platforms Backtesting, Meta Platforms Valuation, Meta Platforms Correlation, Meta Platforms Hype Analysis, Meta Platforms Volatility, Meta Platforms History and analyze Meta Platforms Performance. Note that the Meta Platforms information on this page should be used as a complementary analysis to other Meta Platforms' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Complementary Tools for Meta Platforms Stock analysis

When running Meta Platforms price analysis, check to measure Meta Platforms' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Meta Platforms is operating at the current time. Most of Meta Platforms' value examination focuses on studying past and present price action to predict the probability of Meta Platforms' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Meta Platforms' price. Additionally, you may evaluate how the addition of Meta Platforms to your portfolios can decrease your overall portfolio volatility.
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Meta Platforms technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Meta Platforms technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Meta Platforms trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...