META Valuation

Meta Platforms Inc

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754.100

+0.8(0.106%)1D

Overview
Forecast
Valuation
Earnings

META Relative Valuation

META's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, META is overvalued; if below, it's undervalued.

Historical Valuation

Meta Platforms Inc (META) is now in the Fair zone, suggesting that its current forward PE ratio of 26.62 is considered Fairly compared with the five-year average of 21.82. The fair price of Meta Platforms Inc (META) is between 594.55 to 804.72 according to relative valuation methord.

Relative Value

Fair Zone

594.55-804.72

Current Price：752.60

Fair

26.65

Trailing

Forward

14.91

EV/EBITDA

Meta Platforms Inc. (META) has a current EV/EBITDA of 14.91. The 5-year average EV/EBITDA is 11.52. The thresholds are as follows: Strongly Undervalued below 5.77, Undervalued between 5.77 and 8.64, Fairly Valued between 14.39 and 8.64, Overvalued between 14.39 and 17.26, and Strongly Overvalued above 17.26. The current Forward EV/EBITDA of 14.91 falls within the Overvalued range.

23.07

EV/EBIT

Meta Platforms Inc. (META) has a current EV/EBIT of 23.07. The 5-year average EV/EBIT is 17.53. The thresholds are as follows: Strongly Undervalued below 9.64, Undervalued between 9.64 and 13.58, Fairly Valued between 21.48 and 13.58, Overvalued between 21.48 and 25.42, and Strongly Overvalued above 25.42. The current Forward EV/EBIT of 23.07 falls within the Overvalued range.

8.95

Meta Platforms Inc. (META) has a current PS of 8.95. The 5-year average PS is 6.42. The thresholds are as follows: Strongly Undervalued below 2.63, Undervalued between 2.63 and 4.52, Fairly Valued between 8.32 and 4.52, Overvalued between 8.32 and 10.21, and Strongly Overvalued above 10.21. The current Forward PS of 8.95 falls within the Overvalued range.

16.22

P/OCF

Meta Platforms Inc. (META) has a current P/OCF of 16.22. The 5-year average P/OCF is 13.26. The thresholds are as follows: Strongly Undervalued below 6.60, Undervalued between 6.60 and 9.93, Fairly Valued between 16.59 and 9.93, Overvalued between 16.59 and 19.93, and Strongly Overvalued above 19.93. The current Forward P/OCF of 16.22 falls within the Historic Trend Line -Fairly Valued range.

59.37

P/FCF

Meta Platforms Inc. (META) has a current P/FCF of 59.37. The 5-year average P/FCF is 29.18. The thresholds are as follows: Strongly Undervalued below 10.08, Undervalued between 10.08 and 19.63, Fairly Valued between 38.72 and 19.63, Overvalued between 38.72 and 48.27, and Strongly Overvalued above 48.27. The current Forward P/FCF of 59.37 falls within the Strongly Overvalued range.

Meta Platforms Inc (META) has a current Price-to-Book (P/B) ratio of 9.72. Compared to its 3-year average P/B ratio of 6.70 , the current P/B ratio is approximately 44.98% higher. Relative to its 5-year average P/B ratio of 6.44, the current P/B ratio is about 50.88% higher. Meta Platforms Inc (META) has a Forward Free Cash Flow (FCF) yield of approximately 2.64%. Compared to its 3-year average FCF yield of 4.21%, the current FCF yield is approximately -37.24% lower. Relative to its 5-year average FCF yield of 4.25% , the current FCF yield is about -37.83% lower.

9.73

P/B

Median3y

6.70

Median5y

6.44

2.65

FCF Yield

Median3y

4.21

Median5y

4.25

Competitors Valuation Multiple

The average P/S ratio for META's competitors is 6.83, providing a benchmark for relative valuation. Meta Platforms Inc Corp (META) exhibits a P/S ratio of 8.95, which is 31.03% above the industry average. Given its robust revenue growth of 21.61%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Tencent Music Entertainment Group

Spotify Technology SA

6.66

10.14%

142.57B

Performance Decomposition

Market capitalization of META increased by 44.91% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 39.07B to 47.52B.

The secondary factor is the P/E Change, contributed 16.99%to the performance.

Overall, the performance of META in the past 1 year is driven by Revenue Growth. Which is more sustainable.

21.61%

39.07B → 47.52B

Revenue Growth

6.31%

36.30 → 38.59

Margin Expansion

16.99%

23.38 → 27.35

P/E Change

44.91%