Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 16.13%, higher than industry average of 13.88%.

Growth Trajectory

Profitability

In the growth phase company makes 45.17% profit on every dollar of sales, higher than industry average of 4.86%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.07% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
2.19T USD
Equity Value
2.19T USD
FCF Yield
77.65%
Average ROIC
51.00%
Cost of Capital
9.61%
P/E Ratio
26.73x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues178.80B USD164.50B USD
Operating Income or EBIT81.23B USD71.38B USD
Interest Expense940M USD715M USD
Book Value Of Equity195.07B USD182.64B USD
Book Value Of Debt49.56B USD49.06B USD
Cash and Marketable Securities47.07B USD77.81B USD
Number of Shares Outstanding2.52B--
Minority interests0 USD0 USD
Current Stock Price764.14 USD--
Effective Tax Rate12.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-5.18%
8.69%Company
vs
13.87%Industry
Below Industry
Operating Margin
+40.57%
45.42%Company
vs
4.85%Industry
Above Industry
Meta Platforms, Inc. demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
17.66%
Reinvestment Rate
26.04%
Terminal value represents 65% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 1.43T USD Add
Present Value (Cash Flow Over Next 10 Years) 759.39B USD Add
Value of Operating Assets 2.19T USD Sub-total
Debt 49.56B USD Subtract
Minority Interests — Subtract
Cash 47.07B USD Add
Value of Equity 2.19T USD Sub-total
Number of Shares 2.52B shares Divisor
Estimated Value per Share (Fair Value) 870.72 USD Total
Current Market Price 759.55 USD Reference

Financial Projections

Total FCF Present Value
759.39B USD
Avg Revenue Growth
10.95%
Avg Operating Margin
45.11%
Avg ROIC
51.00%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue207.94B USD241.48B USD280.42B USD325.64B USD378.16B USD430.42B USD479.99B USD524.20B USD560.40B USD586.18B USD613.14B USD
Growth Rate 16.29% 16.12% 16.12% 16.12% 16.12% 13.82% 11.51% 9.21% 6.90% 4.59% 4.59%
PROFITABILITY
Operating Income94.47B USD109.29B USD126.67B USD146.82B USD170.17B USD193.69B USD215.99B USD235.89B USD252.18B USD263.78B USD275.91B USD
Operating Margin 45.42% 45.25% 45.17% 45.08% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00%
EBIT (1-tax)83.13B USD96.17B USD111.47B USD129.20B USD149.75B USD165.41B USD178.84B USD189.18B USD195.69B USD197.83B USD206.93B USD
CASH FLOW
Reinvestment9.45B USD10.97B USD12.74B USD14.80B USD14.73B USD27.93B USD24.92B USD20.40B USD14.53B USD15.19B USD53.90B USD
Free Cash Flow73.68B USD85.19B USD98.72B USD114.40B USD135.02B USD137.47B USD153.92B USD168.78B USD181.16B USD182.63B USD153.03B USD
Terminal Value--------------------3.61T USD
Present Value66.94B USD70.32B USD74.03B USD77.93B USD83.57B USD77.47B USD79.17B USD79.40B USD78.13B USD72.38B USD—
EFFICIENCY
ROIC 42.08% 46.45% 51.13% 55.99% 60.99% 63.55% 62.05% 60.41% 58.67% 56.84% 17.66%
Cost of Capital 10.07% 10.07% 10.07% 10.07% 10.07% 9.82% 9.57% 9.32% 9.07% 8.83% 8.83%
Sales/Capital 3.54x 3.54x 3.54x 3.54x 3.54x 1.77x 1.77x 1.77x 1.77x 1.77x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)