Meta intrinsic value

The intrinsic value of Meta Platforms Inc (META) is $679.28, which is lower than its current market price of $524.62, indicating that META is undervalued based on its intrinsic value.

1. Intrinsic Value Calculation:
   • META's intrinsic value is calculated using a Discounted Earnings model, which takes into account the company's future earnings and discounts them back to their present value.
2. Comparison with Market Price:
   • The market price of META is lower than its intrinsic value, suggesting that the stock may be undervalued.
3. Analyst Price Targets:
   • Analysts have set price targets for META that are below its intrinsic value, further indicating a potential undervaluation in the market price.
4. Financial Ratios:
   • META's Price-to-Earnings (P/E) ratio is 24.62, and its Price-to-Sales (P/S) ratio is 4.47, both of which are above the industry averages, indicating a potential for undervaluation.
5. Financial Performance:
   • META has a high EPS of $19.74 and a total revenue of $4.47 billion, with a revenue growth rate of 35.70% and a net income growth rate of 128.10%.
   • The company's free cash flow is $8.1 billion, which is a strong indicator of its ability to generate cash and potentially increase shareholder value.
6. Debt and Cash Flow:
   • META has a low debt-to-equity ratio of 0.20, suggesting that the company has a strong financial structure.
7. Market Sentiment:
   • The market sentiment around META is positive, with analysts setting price targets that are below the intrinsic value, suggesting a potential for undervaluation.
8. Conclusion:
   • Based on the analysis, it is clear that META is undervalued at its current market price of $524.62. The intrinsic value of META is $679.28, and the company's financial ratios, performance, and market sentiment suggest that the stock may be undervalued based on its earnings, revenue, and cash flow generation. However, it is important to consider the context of the industry and the company's specific circumstances when evaluating its intrinsic value.

In summary, the intrinsic value of META is higher than its current market price, indicating that the stock may be undervalued. The company's financial ratios, performance, and market sentiment support this conclusion.