Revenue by segment flowing through costs to profit (FY2024) | Source: Meta 2024 10-K Filing
FY2024 data from Meta 2024 10-K Filing
| Segment | What They Sell | Revenue | % of Total | Op. Income | Margin |
|---|---|---|---|---|---|
| Family of Apps (FB/IG/WhatsApp) | N/A | $133.0B |
98%
|
$55.0B | 41% |
| Reality Labs (VR/AR) | N/A | $2.2B |
2%
|
$-16.0B | -727% |
Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense
Fair Value: $1247.98
+86.4% Upside
Stock appears undervalued with 86.4% upside to fair value. High confidence based on valuation spread and data quality.
Meta Platforms, Inc. (META) currently trades at $669.66, representing a 86.4% discount to our calculated fair value of $1247.98.
Key Strengths: Strong balance sheet (Net Debt/EBITDA: 0.0x); Strong interest coverage (71.5x); High profit margins (30.1%).
Key Risks: No significant concerns identified.
The company generates $23.43B in levered free cash flow annually, providing real cash returns to shareholders. Wall Street consensus is strong_buy with a mean price target of $859.85.
| Criterion | Status | Notes |
|---|---|---|
| ≤4 operating segments | PASS | Segment count estimated from sector classification. Verify in 10-K for accuracy. |
| Top 2 segments ≥70% of revenue | PASS | Revenue concentration estimated. Verify segment breakdown in 10-K. |
| ≤3 material geographic regions | PASS | Most US-listed companies report US vs International (2 regions). |
| No exotic debt instruments or off-balance-sheet complexity | PASS | Review 10-K for convertibles, derivatives, and off-balance-sheet items. |
Recommendation: PROCEED TO VALUATION
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 (VR) headsets, and AI glasses in the United States, Canada, Europe, Asia-Pacific, and internationally. It operates through two segments, Family of Apps (FoA) and Reality Labs (RL). The FoA segment offers Facebook, which enables people to build community through feed, reels, stories, groups, marketplace, and other; Instagram that brings people closer through Instagram feed, stories, reels, live, and messaging; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; Meta AI, an assistant that's available across apps, as a stand-alone app, on AI glasses, and on the web; Threads, an application for text-based updates and public conversations; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact in a private way. The RL segment provides virtual and augmented reality products, including consumer hardware, software, and content that help people feel connected anytime and anywhere, as well as Meta Quest devices that enable social experiences across gaming, fitness, entertainment, and more. The segment also includes wearables such as AI glasses like Ray Ban Meta and Oakley Meta glasses, featuring Meta AI for advanced conversational and hands free interaction; and the Meta Ray Ban Display, which combines AI glasses with an integrated lens display and the Meta Neural Band, a wrist worn device using electromyography that lets people control their AI glasses through neuromuscular signals. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California.
| Market Capitalization | $1693.76B |
| (+) Total Debt | $85.08B |
| (-) Cash & Equivalents | $81.59B |
| Net Debt | $3.49B |
| Enterprise Value | $1697.25B |
| Metric | Value | What It Means |
|---|---|---|
| Net Debt / EBITDA | 0.03x | Very Strong |
| Interest Coverage | 71.5x | Excellent |
| Debt / Equity | 39.2% | Moderate |
| Current Ratio | 2.60 | Healthy - can easily pay short-term bills |
Overall: Balance sheet is strong with conservative leverage.
Industry: Internet Content & Information | Data: TTM (Trailing 12 Months) as of 2026-02-04 | Source: Yahoo Finance
| Company | Market Cap | P/E | Forward P/E | EV/EBITDA | Profit Margin |
|---|---|---|---|---|---|
| GOOGL | $4034.3B | 32.9x | 29.6x | 27.9x | 32.2% |
| META (Target) | $1694.2B | 28.5x | 18.9x | 17.2x | 30.1% |
| PINS | $13.6B | 7.0x | 10.6x | 37.9x | 49.0% |
| TTD | $13.4B | 31.1x | 13.1x | 19.5x | 15.7% |
| SNAP | $10.2B | 0.0x | 12.1x | -25.8x | -8.6% |
| Peer Average (excl. target) | - | 32.0x | 12.1x | 27.9x | 32.2% |
| Method | Inputs | Fair Value |
|---|---|---|
| Equity (TTM EPS) | EPS: $23.52 x 35.2x P/E | $827.90 |
| Equity (Forward EPS) | EPS: $35.45 x 35.2x P/E | $1247.98 |
| EV-Based (EBITDA) | EBITDA: $101.89B x 30.6x | $1423.94 |
| Headline Fair Value | Median value used (spread 51.1% exceeds 15% threshold) | $1247.98 |
Assessment: Strong positive profile with multiple favorable factors.
META trades at 28.5x TTM P/E and 18.9x Forward P/E. This compares to peer averages of 32.0x TTM and 12.1x Forward P/E.
The company generates positive levered free cash flow of $23.43B, demonstrating its ability to generate real cash after all obligations.
59 analysts cover this stock with a consensus strong_buy rating. Price targets range from $700 to $1144, with a mean of $860.
18.83 - Neutral/Low Fear
Score: 42/100
143.85
SPY YTD: 15.5% | RSP YTD: 13.1%
No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.
Track Record: 7 beats, 1 misses, 0 in-line out of 8 quarters | 88% Beat Rate
| Date | EPS Estimate | EPS Actual | Result | Surprise % |
|---|---|---|---|---|
| 2026-01-28 | $8.22 | $8.88 | BEAT | 8.0% |
| 2025-10-29 | $6.71 | $1.05 | MISS | -84.3% |
| 2025-07-30 | $5.86 | $7.14 | BEAT | 21.8% |
| 2025-04-30 | $5.21 | $6.43 | BEAT | 23.5% |
| 2025-01-29 | $6.74 | $8.02 | BEAT | 19.0% |
| 2024-10-30 | $5.30 | $6.03 | BEAT | 13.9% |
| 2024-07-31 | $4.76 | $5.16 | BEAT | 8.4% |
| 2024-04-24 | $4.32 | $4.71 | BEAT | 8.9% |
All financial data sourced from:
Click any blue number throughout the report to view its source.
This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.
Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.
Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.
This metric shows how much actual cash the company generates after paying for:
A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.
Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.
Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.
Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.
By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.
Not all revenue is equal. Different business segments have different growth rates and profit margins.
For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.
Watch for: