Meta Platforms, operating in the Interactive Media & Services sector, has shown promising potential in the stock market. Despite a quarterly earnings growth showing a loss of 19%, the company's EBITDA stands at a robust
$42.5B, with an EBIT of
$28.9B. This demonstrates the company's ability to generate substantial earnings before interest, taxes, depreciation, and amortization. The company's total assets are valued at a staggering
$185.73B, underlining its strong financial position. The stock's 200-day moving average is 191.83, while the target price is set at 325.77, indicating potential for significant price surge. The company's operating margin of 0.2847 and return on assets of 0.12 further highlight its profitability. Despite a sale purchase of stock resulting in a loss of $28B, other cash flows from financing activities have added $6.7B. With a beta of 1.2145, Meta Platforms offers a slightly higher risk-reward ratio, which could be attractive to certain investors. The company's price to earnings to growth (PEG) ratio is 2.63X, suggesting that the stock may be undervalued given its earnings growth. Many of us are intrigued by the interactive media and services sector, and it's worth taking a closer look at Meta Platforms. We aim to assess whether the shares of Meta Platforms are reasonably priced as we approach September. Is the current stock value sustainable? We will examine the valuation drivers of Meta Platforms to provide you with a clearer perspective on whether to consider investing in it.
We determine the current worth of Meta Platforms using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. 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 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.
Meta Platforms Investment Alerts
Meta investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Meta Platforms performance across your portfolios.Please check all
investment alerts for Meta
Meta Platforms Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Meta 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 the intrinsic value of Meta.
Meta Platforms Gross Profit
Meta Platforms Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Meta Platforms previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Meta Platforms Gross Profit growth over the last 10 years. Please check Meta Platforms'
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Meta Platforms
The current price rise of Meta Platforms may encourage investors to take a closer look at the firm as it is trading at a share price of
314.31 on
19,845,626 in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit
market volatility in
September. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.79. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2020 | 2021 | 2022 | 2023 (projected) |
Accounts Payable | 1.33 B | 4.08 B | 4.99 B | 5.38 B | Receivables | 11.34 B | 14.04 B | 13.47 B | 14.53 B |
Margins Breakdown
Meta profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Meta Platforms itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Meta Platforms profit margins.
| Operating Margin | 35.16 |
| EBITDA Margin | 0.43 |
| Gross Margin | 0.88 |
| Profit Margin | 0.26 |
Meta Platforms Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The previous year's value of Meta Platforms Earnings Before Interest Taxes and Depreciation Amortization USD was 32,934,526,316. Meta Platforms Average Assets is increasing over the last 8 years. The previous year's value of Meta Platforms Average Assets was 141,220,407,895. Furthermore, Meta Platforms Revenue Per Employee is increasing over the last 8 years. Meta Platforms Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. Meta Platforms Average Assets is increasing over the last 8 years.
The current value of Meta Platforms Average Assets is 141,220,407,895. Furthermore, Meta Platforms Revenue Per Employee is somewhat stable at the moment. Meta Platforms, traded on NASDAQ under the ticker META, has been showing promising signs of growth and stability. The company's net borrowings stand at a substantial
$9.9 billion, while its long-term debt is also at $9.9 billion. Despite these figures, the company maintains a healthy current ratio of 2.52X, indicating its ability to cover short-term liabilities. The company's operating margin is at 0.28%, with a profit margin of 0.18%, reflecting a decent profitability. The total revenue for the company is a staggering
$116.6 billion, with a cost of revenue at $25.2 billion. This leaves a gross profit of $92.86 billion, a significant figure that underscores the company's financial strength. Meta Platforms also boasts a robust EBITDA of $37.63 billion. The company's Price to Earnings (PE) ratio stands at 41.323, while the Price to Book ratio is at 2.60X, suggesting a fair valuation. The company's shares are also popular among institutions, with 76.24% of shares owned by them. In conclusion, Meta Platforms presents a compelling investment opportunity. Its strong financials, coupled with its fair valuation and institutional backing, make it a stock to watch in the coming months. .
Is Meta showing appearance of lower volatility?
Meta Platforms, Inc., previously known as Facebook, is showing signs of reduced volatility, as indicated by its declining Jensen Alpha value of 0.37. This metric, which gauges the risk-adjusted performance of an investment, implies that the company's stock is currently generating less excess return for
the level of risk assumed by investors. This could suggest a stabilizing market perception of Meta's operations and
future prospects, or simply a period of lower overall market volatility. It's crucial for investors to track these trends and modify their trading strategies accordingly. Meta Platforms exhibits relatively low volatility, with a skewness of -0.07 and a kurtosis of 0.34. However, we recommend that all investors independently research Meta Platforms to ensure that all available information aligns with their expectations about its upside potential and future expected returns. Understanding different
market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to measure Meta Platforms' stock risk against market volatility during both bullish and bearish trends. The increased level of volatility that accompanies bear markets can directly affect
Meta Platforms' stock price, adding stress to investors as they watch the value of their shares decline.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. Despite the recent price rise of Meta Platforms (USA Stocks:META), investors should approach with caution. The Valuation Hype Value of
316.89 and the Valuation Market Value of
314.31 suggest that the stock may be overvalued. Furthermore, the Analyst Lowest Estimated Target Price stands at 80, indicating a potential downside. However, the Analyst Overall Consensus is a 'Buy', with 33 strong buys, 2 buys, and only 1 strong sell. The Analyst Target Price Estimated Value is 320.228, slightly above the current price, suggesting a possible upside. But, with 10 estimates raised and 10 lowered, the market appears divided on the
future performance of Meta Platforms. Therefore, while the stock may appear attractive due to its recent price rise, investors should carefully consider these factors before making a decision. .
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Meta Platforms. Please refer to our
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