Meta Platforms, Inc. (META) stock analysis

P/E below its 5-year median

Meta Platforms's P/E of 21.4 is below its own 5-year median of 26.7.

P/E below the industry

Meta Platforms's P/E of 21.4 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

Meta Platforms's EV/EBITDA of 15.4 is below its 5-year median of 17.1.

P/B above the industry

Meta Platforms's price-to-book of 5.90 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $628.77 is below our fair value estimate of $681.13.

Margin of safety under 20%

The price is 7.7% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 19.9% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 39.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 28.6% over the last twelve months, against a 5-year average of 15.7% a year.

Growing faster than the industry

Revenue grew 27.5% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance lowered

Meta Platforms lowered its 2026 Reality Labs losses outlook on Oct 21, 2026.

Gross margin slipping

Gross margin was 81.0% over the last twelve months, against 82.0% a year earlier.

Return on equity over 15%

Return on equity was 32.3% over the last twelve months and averaged 29.0% over five years.

Return on capital over 10%

Return on invested capital was 33.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Meta Platforms's return on equity of 32.3% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings grew over 5 years

Net income grew 15.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 31.1% over the last twelve months, against a 5-year average of 30.1%.

Net margin above the industry

Meta Platforms's net margin of 31.1% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

Low debt

Debt is 30.7% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 159% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.90 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.35; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Meta Platforms paid dividends worth 0.3% of the share price over the last twelve months.

Yield below Treasuries

The 0.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Meta Platforms yields 0.3%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 7.2% of net income.

Covered by free cash flow

Dividends take 18.8% of free cash flow.