Meta Platforms, Inc. (META) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-56.5%

$266.28

vs $612.06 price

Levered DCF

$565.17

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

5.65

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	27.53×	23.79×	23.3×	13.94×	24.04×	26.73×	31.67×	17.14×
P/B	7.66×	8.12×	5.95×	2.57×	7.58×	6.07×	5.8×	4.5×
P/S	8.28×	9.02×	6.75×	2.77×	8.03×	9.06×	8.29×	6.78×
EV / EBITDA	16.38×	17.14×	15.35×	8.9×	17.08×	19.52×	16.62×	12.64×
Gross margin	82.0%	81.7%	80.8%	78.3%	80.8%	80.6%	81.9%	83.2%
Operating margin	41.4%	42.2%	34.7%	24.8%	39.6%	38.0%	33.9%	44.6%
Net margin	30.1%	37.9%	29.0%	19.9%	33.4%	33.9%	26.1%	39.6%
Current ratio	2.6×	2.98×	2.67×	2.2×	3.15×	5.05×	4.4×	7.19×
Debt / equity	0.39×	0.27×	0.24×	0.21×	0.11×	0.08×	0.1×	0.01×
Interest coverage	71.48×	97.03×	104.82×	156.45×	2,032.74×	0×	1,199.3×	2,768.11×
Dividend yield	0.3%	0.3%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	8.8%	8.1%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	27.8%	34.1%	25.5%	18.5%	31.5%	22.7%	18.3%	26.3%
Return on invested capital	18.0%	25.1%	19.3%	14.6%	26.7%	19.7%	15.0%	23.9%
Return on assets	16.5%	22.6%	17.0%	12.5%	23.7%	18.3%	13.9%	22.7%
Free cash flow yield	2.8%	3.6%	4.8%	5.9%	4.1%	3.0%	3.6%	4.1%
Earnings yield	3.6%	4.2%	4.3%	7.2%	4.2%	3.7%	3.2%	5.8%
Enterprise value	$1.7T	$1.5T	$906.5B	$335.3B	$944.1B	$771.9B	$577.3B	$369.3B
Net debt / EBITDA	0.46×	0.06×	-0.08×	0.32×	-0.05×	-0.18×	-0.24×	-0.33×
Cash conversion cycle (days)	-54	-55	-24	-30	-22	19	10	18