Meta Platforms, Inc. (META) Fair Value & PE Analysis
Internet Content & Information · NASDAQ
Current Price
$585.61
PE Ratio (TTM)
21.8x
Intrinsic Value
$1,071.37
+45.3% margin of safety
What Is Meta Platforms, Inc.'s Fair Value?
As of 2026-07-29, applying a 22.0x earnings multiple to Meta Platforms, Inc.'s (META) earnings per share of $26.78 yields a fair value estimate of $1,071.37 per share, versus a market price of $585.61.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $877.31 to $1,291.34. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · META intrinsic value (DCF view)
Is Meta Platforms, Inc. (META) Overvalued?
At $585.61, META trades below its PE-based fair value estimate by a wide margin. By this model the stock looks cheap relative to its earnings power, but check whether earnings are sustainable before reading too much into it.
COMPETITIVE MOAT
↑Vast Social Network Effects
Meta's platforms (Facebook, Instagram, WhatsApp) benefit from immense network effects. More users attract more users, creating a powerful barrier to entry for new social media competitors.
↑Data Advantage for Ad Targeting
Decades of user data across its family of apps provide Meta with unparalleled insights for highly effective advertising targeting. This data advantage is difficult for rivals to replicate.
↑Open-Source AI Model Leadership
Meta's strategy of releasing powerful AI models as open-source fosters widespread adoption and developer engagement. This builds an ecosystem around its AI, potentially driving future innovation and integration.
INVESTMENT RISKS
↓Shifting User Engagement Trends
While Meta's platforms are dominant, user attention can shift to new platforms or content formats. Failure to adapt to evolving user preferences could erode engagement and ad revenue.
↓AI Competition and Innovation Pace
The rapid pace of AI development by competitors could challenge Meta's leadership. Other companies might develop superior AI models or applications that capture user interest and advertiser spend.
↓Economic Sensitivity of Ad Market
Meta's core revenue is heavily reliant on advertising. Economic downturns or reduced corporate spending can significantly impact its advertising revenue and overall financial performance.
Base case
META base case PE valuation
Intrinsic Value
$1,071.37
Margin of safety
+45.3%
Expected annual return
+12.8%
Base case assumptions: 19.7% annual earnings growth, 22x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the META PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Meta Platforms, Inc. respond.
Open PE Calculator for METACompany Overview
Meta Platforms Inc., which operated as Facebook, Inc. until its October 2021 rebranding, is a technology enterprise focused on developing innovative products that empower people globally to connect and share with their friends and family. These services are accessible across a variety of digital platforms, including mobile phones, personal computers, virtual reality devices, and wearables. The company's activities are organized into two principal divisions: the Family of Apps and Reality Labs. The Family of Apps segment encompasses well-known platforms such as: Facebook, where users can share content, participate in discussions, explore new interests, and build connections. Instagram, a vibrant community dedicated to sharing visual media like photos and videos, sending private messages, and utilizing features such as user feeds, ephemeral stories, short video reels, live streams, and integrated shopping functionalities. Messenger, a dedicated application that facilitates text, audio, and video communications, enabling individuals to communicate with their social networks, communities, and even businesses across different devices and operating systems. WhatsApp, a widely adopted and secure messaging service employed by individuals and enterprises for private communication and financial transactions. The Reality Labs division concentrates on pioneering augmented and virtual reality technologies. This segment is responsible for creating consumer-grade hardware, sophisticated software, and engaging content, all aimed at fostering a sense of connection among people, regardless of their physical location or time zone. Meta Platforms Inc. was founded in 2004 and its corporate headquarters are situated in Menlo Park, California.
Financial Metrics — META PE Stock Valuation Data
PE Ratio (TTM)
21.8x
PEG Ratio
n/m
Earnings Yield
4.57%
ROE (TTM)
29.7%
Revenue/Share (TTM)
$89.76
Dividend Yield
0.36%
Debt/Equity
0.43x
Frequently Asked Questions
What is the PE ratio of META?
The trailing twelve-month PE ratio of META reflects how much investors pay per dollar of Meta Platforms, Inc.'s earnings. This metric is most useful when compared to Internet Content & Information peers and the company's own historical range.
Is META overvalued based on PE ratio?
META's PE of 21.8x combined with a PEG ratio of -4.46 provides a growth-adjusted perspective. META has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Internet Content & Information, a DCF analysis may be more appropriate.
How do I value META stock using PE ratio?
To value Meta Platforms, Inc. using PE: (1) Compare the current PE (21.8x) against the Internet Content & Information median to assess relative pricing, (2) check the PEG ratio (-4.46) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of META?
META's PEG ratio is -4.46, calculated by dividing the PE ratio (21.8x) by the expected earnings growth rate. Because META has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for META stock valuation?
PE ratio gives a quick relative read — how META is priced versus Internet Content & Information peers. DCF provides an absolute value based on projected free cash flows. For META, with a strong ROE of 29.7%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See META DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Communication Services valuationsP/E and DCF value META with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.