Meta Platforms, Inc.
META
Services-Computer Programming, Data Processing, Etc.
Mkt Cap
$1.221TPE
26.69Debt
$18.39BCash
$33.28BEV
$1.207TFCF
$49.54BP/E Ratio
26.69Debt
$18.39BCash
$33.28BEV
$1.207TFCF
$49.54BCharts data: {"Earnings":[{"time":"2014-12-30","value":2925000000},{"time":"2015-12-30","value":3669000000},{"time":"2016-12-30","value":10188000000},{"time":"2017-12-30","value":15920000000},{"time":"2018-12-30","value":22111000000},{"time":"2019-12-30","value":18485000000},{"time":"2020-12-30","value":29146000000},{"time":"2021-12-30","value":39370000000},{"time":"2022-12-30","value":23200000000},{"time":"2023-12-30","value":39098000000}],"Sales":[{"time":"2014-12-30","value":12466000000},{"time":"2015-12-30","value":17928000000},{"time":"2016-12-30","value":27638000000},{"time":"2017-12-30","value":40653000000},{"time":"2018-12-30","value":55838000000},{"time":"2019-12-30","value":70697000000},{"time":"2020-12-30","value":85965000000},{"time":"2021-12-30","value":117929000000},{"time":"2022-12-30","value":116609000000},{"time":"2023-12-30","value":134902000000}],"Net Margins":[{"time":"2014-12-30","value":0.23463821594737685},{"time":"2015-12-30","value":0.20465194109772422},{"time":"2016-12-30","value":0.36862291048556334},{"time":"2017-12-30","value":0.39160701547241283},{"time":"2018-12-30","value":0.3959848132096422},{"time":"2019-12-30","value":0.2614679547929898},{"time":"2020-12-30","value":0.3390449601582039},{"time":"2021-12-30","value":0.3338449405998525},{"time":"2022-12-30","value":0.19895548371051977},{"time":"2023-12-30","value":0.28982520644616094}],"Assets":[{"time":"2014-12-30","value":40184000000},{"time":"2015-12-30","value":49407000000},{"time":"2016-12-30","value":64961000000},{"time":"2017-12-30","value":84524000000},{"time":"2018-12-30","value":97334000000},{"time":"2019-12-30","value":133376000000},{"time":"2020-12-30","value":159316000000},{"time":"2021-12-30","value":165987000000},{"time":"2022-12-30","value":185727000000},{"time":"2023-12-30","value":229623000000}],"Stockholders Equity":[{"time":"2014-12-30","value":36096000000},{"time":"2015-12-30","value":44218000000},{"time":"2016-12-30","value":59194000000},{"time":"2017-12-30","value":74347000000},{"time":"2018-12-30","value":84127000000},{"time":"2019-12-30","value":101054000000},{"time":"2020-12-30","value":128290000000},{"time":"2021-12-30","value":124879000000},{"time":"2022-12-30","value":125713000000},{"time":"2023-12-30","value":153168000000}],"ROE":[{"time":"2014-12-30","value":0.08103390957446809},{"time":"2015-12-30","value":0.08297525894432131},{"time":"2016-12-30","value":0.17211203838226846},{"time":"2017-12-30","value":0.21413103420447363},{"time":"2018-12-30","value":0.2628288183341852},{"time":"2019-12-30","value":0.18292200209788825},{"time":"2020-12-30","value":0.22718840127835374},{"time":"2021-12-30","value":0.31526517669103693},{"time":"2022-12-30","value":0.18454734196145187},{"time":"2023-12-30","value":0.25526219575890524}],"ROA":[{"time":"2014-12-30","value":0.12427831972924547},{"time":"2015-12-30","value":0.12599429230675815},{"time":"2016-12-30","value":0.19270023552593094},{"time":"2017-12-30","value":0.24364677488050732},{"time":"2018-12-30","value":0.26055643454496885},{"time":"2019-12-30","value":0.18603047024952016},{"time":"2020-12-30","value":0.20826533430415023},{"time":"2021-12-30","value":0.2848656822522246},{"time":"2022-12-30","value":0.15584163853397728},{"time":"2023-12-30","value":0.20654725354167483}]}
Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. Meta Platforms, Inc. was incorporated in 2004 and is headquartered in Menlo Park, California.
DCF
Discounted Cash Flow Valuation of Meta Platforms, Inc.
Value
Growth
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Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $49.54B | $60.58B | $72.92B | $86.38B | $100.7B | $115.4B | $130B | $144B | $156.7B | $167.6B | $176B | $1.76T |
| DCF | $52.68B | $55.14B | $56.8B | $57.55B | $57.36B | $56.2B | $54.13B | $51.24B | $47.64B | $43.49B | $434.9B | |
| Value | $967.2B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 28%
Earnings Stability 74%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 20% | 37% | 39% | 40% | 26% | 34% | 33% | 20% | 29% | 32% |
| ROA | 13% | 19% | 24% | 26% | 19% | 21% | 28% | 16% | 21% | 24% |
| ROE | 8.3% | 17% | 21% | 26% | 18% | 23% | 32% | 18% | 26% | 31% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +30.32%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -2.07%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +21.7%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.81%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +23.8%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +0.16%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 0.03 | 0.00 | - | - | - | - | 0.00 | 0.53 | 0.42 | 0.37 |
| Debt Equity | 0.00 | 0.00 | - | - | - | - | 0.00 | 0.08 | 0.12 | 0.12 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 80% | 100% | 80% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 0.37.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.21.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.80.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 25% | 19% | 16% | 16% | -5.2% |
| Net Income | 21% | 12% | 10% | 69% | -8.5% |
| Stockholders Equity | 15% | 13% | 6.1% | 22% | -2.4% |
| FCF | 21% | 23% | 23% | 130% | -2.1% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +19.29%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -5.23%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +12.08%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -8.46%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +12.73%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -2.42%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +23.34%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -2.05%.