Meta Platforms Stock Valuation

FB -  USA Stock  

USD 338.69  5.57  1.67%

Do you wonder what the value of Meta Platforms is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Meta Platforms, is its stock price multiplied by the total number of shares outstanding, calculating Meta Platforms' enterprise value requires a different approach. It uses Meta Platforms' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Meta Platforms Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 23.63 Billion. The current year Tangible Asset Value is expected to grow to about 150.7 B, whereas Enterprise Value is forecasted to decline to about 617.5 B.
Meta Platforms secures a last-minute Real Value of $366.77 per share. The latest price of the firm is $338.69. At this time, the firm appears to be undervalued. Our model forecasts the value of Meta Platforms from analyzing the firm fundamentals such as Return On Equity of 32.10 %, profit margin of 35.88 %, and Current Valuation of 903.89 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend taking in undervalued stocks and trading overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.

Meta Platforms Valuation 

 
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Meta Platforms Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Meta Platforms's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
338.69
29th of November 2021
Share
Please note that Meta Platforms' price fluctuation is very steady at this time. Calculation of the real value of Meta Platforms is based on 3 months time horizon. Increasing Meta Platforms' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Meta Platforms is useful when determining the fair value of the Meta Platforms stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Meta Platforms. Since Meta Platforms is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Meta Platforms Stock. However, Meta Platforms' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
304.82
Downside
366.77
Real Value
368.58
Upside
Estimating the potential upside or downside of Meta Platforms helps investors to forecast how Meta Platforms stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Meta Platforms more accurately as focusing exclusively on Meta Platforms' fundamentals will not take into account other important factors:
Earnings
Estimates (14)
LowProjected EPSHigh
12.9214.1014.88
Details
Hype
Prediction
LowEstimated ValueHigh
337.23339.04340.85
Details
28 Analysts
Consensus
LowTarget PriceHigh
300.00390.52460.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Meta Platforms' intrinsic value based on its ongoing forecasts of Meta Platforms' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Meta Platforms' closest peers. When choosing an evaluation method for Meta Platforms, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Meta Platforms Investments

54.61 BillionShare

Meta Platforms Valuation Drivers Correlation

Many accounts on the financial statements of Meta Platforms are highly interrelated and sometimes correlated. Consequently, when conducting Meta Platforms's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Meta Platforms
Click cells to compare fundamentals

Meta Platforms Valuation Trend

Knowing Meta Platforms' actual value is paramount for traders to make sound investment determinations. Meta Platforms' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Meta Platforms' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Meta Platforms' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Meta Platforms Market Cap

Meta Platforms is one of the top stocks in market capitalization category among related companies. Market capitalization of Internet Content & Information industry is currently estimated at about 1.01 Trillion. Meta Platforms totals roughly 960.34 Billion in market capitalization claiming about 95% of equities under Internet Content & Information industry.
Capitalization  Workforce  Revenue  Total debt  Valuation

Meta Platforms Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Meta Platforms's current stock value. Our valuation model uses many indicators to compare Meta Platforms value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Meta Platforms competition to find correlations between indicators driving Meta Platforms's intrinsic value. More Info.
Meta Platforms is rated # 3 in price to sales category among related companies. It is rated # 2 in beta category among related companies totaling about  0.15  of Beta per Price to Sales. The ratio of Price to Sales to Beta for Meta Platforms is roughly  6.73 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Meta Platforms by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Meta Platforms' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Meta Platforms' earnings, one of the primary drivers of an investment's value.

About Meta Platforms Valuation

The equity valuation mechanism determines the current worth of Meta Platforms on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Meta Platforms. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Meta Platforms based exclusively on its fundamental and basic technical indicators. By analyzing Meta Platforms's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Meta Platforms's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Meta Platforms. We calculate exposure to Meta Platforms's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Meta Platforms's related companies.
Last ReportedProjected for 2021
Gross Profit69.3 B74.7 B
Profit Margin 0.34  0.33 
Meta Platforms, 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. Meta Platforms, Inc. was founded in 2004 and is headquartered in Menlo Park, California. Meta Platforms operates under Internet Content Information classification in the United States and is traded on NASDAQ Exchange. It employs 68177 people.

Meta Platforms Quarterly Enterprise Value

952.71 BillionShare

Meta Platforms Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Meta Platforms does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio3.94
Earnings Quarterly Growth17.20%
Revenue Growth35.10%
Enterprise Value To Ebitda16.51
Earnings Growth18.80%
Enterprise Value To Revenue8.05

Meta Platforms Current Valuation Indicators

Valuation refers to the process of determining the present value of Meta Platforms and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Meta Platforms we look at many different elements of the entity such as Meta Platforms's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Meta Platforms, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Meta Platforms' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Meta Platforms' worth.
Please check Investing Opportunities. 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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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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Is Meta Platforms' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Meta Platforms. If investors know Meta Platforms will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Meta Platforms listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Meta Platforms is measured differently than its book value, which is the value of Meta Platforms that is recorded on the company's balance sheet. Investors also form their own opinion of Meta Platforms' value that differs from its market value or its book value, called intrinsic value, which is Meta Platforms' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Meta Platforms' market value can be influenced by many factors that don't directly affect Meta Platforms' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Meta Platforms' value and its price as these two are different measures arrived at by different means. Investors typically determine Meta Platforms value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Meta Platforms' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.