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 21.69 is considered Fairly compared with the five-year average of 21.58. The fair price of Meta Platforms Inc (META) is between 610.58 to 829.28 according to relative valuation methord.
Relative Value
Fair Zone
610.58-829.28
Current Price：661.73
Fair
22.47
PE
1Y
3Y
5Y
Trailing
Forward
12.20
EV/EBITDA
Meta Platforms Inc. (META) has a current EV/EBITDA of 12.20. The 5-year average EV/EBITDA is 11.42. The thresholds are as follows: Strongly Undervalued below 5.85, Undervalued between 5.85 and 8.64, Fairly Valued between 14.21 and 8.64, Overvalued between 14.21 and 17.00, and Strongly Overvalued above 17.00. The current Forward EV/EBITDA of 12.20 falls within the Historic Trend Line -Fairly Valued range.
19.35
EV/EBIT
Meta Platforms Inc. (META) has a current EV/EBIT of 19.35. The 5-year average EV/EBIT is 17.48. The thresholds are as follows: Strongly Undervalued below 9.67, Undervalued between 9.67 and 13.58, Fairly Valued between 21.39 and 13.58, Overvalued between 21.39 and 25.29, and Strongly Overvalued above 25.29. The current Forward EV/EBIT of 19.35 falls within the Historic Trend Line -Fairly Valued range.
7.15
PS
Meta Platforms Inc. (META) has a current PS of 7.15. The 5-year average PS is 6.41. The thresholds are as follows: Strongly Undervalued below 2.62, Undervalued between 2.62 and 4.52, Fairly Valued between 8.31 and 4.52, Overvalued between 8.31 and 10.21, and Strongly Overvalued above 10.21. The current Forward PS of 7.15 falls within the Historic Trend Line -Fairly Valued range.
12.83
P/OCF
Meta Platforms Inc. (META) has a current P/OCF of 12.83. The 5-year average P/OCF is 13.08. The thresholds are as follows: Strongly Undervalued below 6.70, Undervalued between 6.70 and 9.89, Fairly Valued between 16.27 and 9.89, Overvalued between 16.27 and 19.46, and Strongly Overvalued above 19.46. The current Forward P/OCF of 12.83 falls within the Historic Trend Line -Fairly Valued range.
71.73
P/FCF
Meta Platforms Inc. (META) has a current P/FCF of 71.73. The 5-year average P/FCF is 31.23. The thresholds are as follows: Strongly Undervalued below 4.88, Undervalued between 4.88 and 18.05, Fairly Valued between 44.40 and 18.05, Overvalued between 44.40 and 57.58, and Strongly Overvalued above 57.58. The current Forward P/FCF of 71.73 falls within the Strongly Overvalued range.
Meta Platforms Inc (META) has a current Price-to-Book (P/B) ratio of 8.31. Compared to its 3-year average P/B ratio of 7.27 , the current P/B ratio is approximately 14.23% higher. Relative to its 5-year average P/B ratio of 6.57, the current P/B ratio is about 26.56% higher. Meta Platforms Inc (META) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.67%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.26% , the current FCF yield is about -100.00% lower.
8.59
P/B
Median3y
7.27
Median5y
6.57
2.78
FCF Yield
Median3y
3.67
Median5y
4.26
Competitors Valuation Multiple
The average P/S ratio for META's competitors is , providing a benchmark for relative valuation. Meta Platforms Inc Corp (META) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 26.25%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of META increased by 12.98% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 40.59B to 51.24B.
The secondary factor is the Margin Expansion, contributed -5.90%to the performance.
Overall, the performance of META in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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