Is Meta Platforms Inc. (META) overvalued?
On Equity Rank's model estimate, META trades 27% above its fair value. Meta Platforms Inc. (META) last closed at $610.15; the multi-method model fair value is $478.84.
| Price | Model fair value | Price vs model |
|---|---|---|
| $610.15 | $478.84 | 27% above |
What the answer rests on
- 1 of 11 valuation methods put META's value above its price and 10 put it below, so the methods mostly agree.
- To justify today's price, META's free cash flow would need to grow about 15.8% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 34.3% a year.
- META trades at 21.5 times its last year's earnings, against a median of 13.4 for 15 profitable Internet Platform companies.
- Over the past year the price sat below the model fair value on 7% of trading days. The gap ranged from 13% below to 44% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind META's fair value · What prices assume · Other companies