Meta Platforms, Inc.(META) - Stock detail

Meta Platforms, Inc.

US
META
Meta Platforms, Inc.(Listing date: 05/18/2012)

Meta Platforms, Inc. was incorporated in Delaware in July 2004 and is the world's largest social networking website. The company provides various tools that enable users to connect, share, explore, and communicate with each other on mobile devices and computers.

AI Value AnalystBuy
Overall Rating9/10
Generated at:2026-06-11 17:40:41
Analysis based on real financial data. Data sources include company financial reports. The analysis uses a total of 5 financial reports covering periods from 2025-03-31 to 2026-03-31. The current stock price is as of the 2026-06-11 close. Data is considered complete for the periods analyzed.
Overview

Meta Platforms, Inc. (META) presents a compelling fundamental picture characterized by accelerating revenue growth, dramatically expanding profitability, and robust financial health. The company is a global technology leader with a strong market position, and its current stock price appears undervalued relative to its financial performance and growth trajectory.

Valuation
8/10
Profitability
10/10
Financial health
9/10
Operation Advice
  • Based on fundamental analysis, the stock is recommended as a Buy.
  • The current price of $568.43 is below the calculated fundamental fair value range of $620-$680, suggesting an attractive entry point.
  • Investors should consider accumulating shares, while being mindful of the inherent volatility typical of technology stocks.

Valuation

P/E TTM
21.95
P/E LYR
30.89
P/B MRQ
6.36
P/S TTM
--
AI Analysis
  • Valuation analysis indicates the stock may be undervalued relative to its growth. While traditional multiples like P/E and P/S are rich, they are justified by exceptional profitability and growth. The current price sits below a reasonable fundamental fair value range.
  • Forward P/E (Dynamic) is 30.89x, based on projected earnings.
  • Trailing P/E (TTM) is 21.95x, based on the last twelve months of actual earnings.
  • The forward P/E is higher than the trailing P/E, reflecting market expectations for future earnings growth.
  • Price-to-Book (P/B) is 6.36x, which is elevated but common for technology companies whose value drivers are not fully captured on the balance sheet.
  • Price-to-Sales (P/S) is 6.71x (TTM), a rich multiple consistent with a high-margin, high-growth market leader.
  • An implied PEG ratio using Forward P/E and Q1 Net Income Growth is very low (~0.51), suggesting the stock could be undervalued relative to its growth rate.
  • The recent 60-day trading range is from $520.26 to $691.52, with the current price of $568.43 towards the lower end.
  • A reasonable fundamental fair value range is $620 - $680, considering the premium multiples justified by the company's market position and growth profile.
  • At $568.43, the stock is trading below the lower bound of the calculated fundamental range, suggesting the market may be undervaluing the company's performance.
Valuation trend

Profitability

ROE TTM
32.80%
Net margin
47.54%
Gross margin
81.85%
Total revenue
56.31B
AI Analysis
  • Profitability is exceptional and improving, with industry-leading margins and outstanding returns on capital. Recent performance shows accelerating revenue growth and dramatically expanding net income, far outpacing revenue growth.
  • The company maintains industry-leading margins, with a gross margin of 81.85% (Q1 2026) reflecting the highly scalable nature of its digital advertising business.
  • The net margin surged to 47.54% in Q1 2026, a significant increase from 30.08% for the full year 2025, indicating dramatically improved cost efficiency and operating leverage.
  • Return on Equity (ROE) is 32.80% (TTM), which is exceptionally high.
  • Return on Assets (ROA) is 19.88% (TTM), showing high effectiveness at generating profits from company assets.
  • Recent performance shows accelerating growth, with Q1 2026 revenue growing 33.08% year-over-year.
  • Q1 2026 net income grew 60.86% year-over-year, far outpacing revenue growth and confirming the expansion in net margins.
  • The company is in a phase of accelerating revenue growth coupled with dramatically expanding profitability.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--18.52%20.01%30.24%32.80%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue42.31B89.83B141.07B200.97B56.31B

Financial health

Debt/Asset
38.35%
Current ratio
2.35
Quick ratio
--
Cash ratio
2.35
AI Analysis
  • The company exhibits a strong and healthy financial position with robust liquidity, manageable debt levels, and a solid overall financial foundation.
  • The current ratio of 2.35 indicates robust short-term liquidity, meaning the company has more than twice the current assets to cover its current liabilities.
  • The debt-to-asset ratio of 38.35% is at a manageable level.
  • The debt level suggests the company uses a moderate amount of leverage while maintaining a strong equity base, which is typical for a mature, cash-generative tech firm.
  • The combination of high liquidity and a reasonable debt level points to a very solid financial foundation, providing stability and flexibility for investments and operations.
  • The company's financial health is robust.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset33.97%33.82%36.13%40.65%38.35%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio2.661.971.982.602.35