Meta Platforms Inc's Intrinsic Value Estimated at $862.38, Modestly Undervalued

This article analyzes Meta Platforms Inc's intrinsic value using a discounted cash flow (DCF) model. The GuruFocus DCF calculator uses EPS without NRI as the default, as it has been historically correlated with stock prices. As of September 1, 2025, the intrinsic value is estimated to be $862.38, while the current price is $738.7, resulting in a margin of safety of 14.34%. The model assumes a growth stage with a 25.4% growth rate for 10 years, followed by a terminal stage with a 4% growth rate for 10 years.

Meta Platforms Inc. (NASDAQ: META), a leading social networking company, has seen a significant reduction in its stock price over the past few quarters. To assess the intrinsic value of Meta Platforms Inc. and determine if the stock is undervalued, a discounted cash flow (DCF) model can be employed. This analysis will provide a comprehensive understanding of the company's financial health and future prospects.

Using the GuruFocus DCF calculator with EPS without NRI as the default, the intrinsic value of Meta Platforms Inc. is estimated to be $862.38 as of September 1, 2025. The current market price of the stock stands at $738.7, resulting in a margin of safety of 14.34%. This margin of safety indicates that the stock may be undervalued by the market, presenting an opportunity for investors seeking long-term growth.

The DCF model assumes a growth stage with a 25.4% growth rate for the next 10 years, followed by a terminal stage with a 4% growth rate for the subsequent 10 years. This growth assumption is based on historical performance and industry trends, providing a conservative estimate of future earnings.

Institutional investors and analysts have shown mixed interest in Meta Platforms Inc. Panagora Asset Management Inc. reduced its stake by 2.2% in the first quarter of 2025, selling 24,425 shares and retaining approximately 1.08 million shares valued at $626 million [1]. Meanwhile, Csenge Advisory Group increased its position by 12% during the same period, highlighting the diverse views among investors [1].

Meta Platforms Inc. reported strong quarterly earnings, with earnings per share (EPS) of $7.14, surpassing analysts' expectations of $5.75. The company generated revenue of $47.52 billion, marking a 21.6% year-over-year increase. This robust performance underscores the company's ability to generate significant cash flows, supporting the DCF model's assumptions [1].

In conclusion, the DCF analysis suggests that Meta Platforms Inc. may be undervalued, with an intrinsic value of $862.38 compared to the current market price of $738.7. The margin of safety of 14.34% indicates that the stock could present an attractive investment opportunity for long-term investors. However, it is essential to monitor the company's financial performance and adjust the DCF model's assumptions as needed.

References:

[1] https://www.marketbeat.com/instant-alerts/filing-meta-platforms-inc-meta-shares-sold-by-panagora-asset-management-inc-2025-08-30/