One-glance verdict
Within fair range
$457.90 our estimate vs market $627.17
Wall Street consensus: $826.01 (80.4% higher than our fair-value estimate)
37% above our estimate
Fundamentals snapshot
Meta Platforms, Inc.
META · NMS · Communication Services · Internet Content & Information
Current price
$627.17
52-week range
$520.26 - $796.25
Market cap
$1.59T
Balance sheet
Healthy
71.48x Strong cushion
Net debt $5.59B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 7.0% last year.
- Reward Returns 32.9% on equity, ahead of 16% of its peers.
- Risk Stock trades 3.6% above its 5-year average P/E.
- Risk Insider ownership is only 0.1% (peer median: 1.6%).
What this company does
Meta Platforms, Inc.
Meta Platforms owns the social media apps you might use every day, like Facebook, Instagram, and WhatsApp. The company's main source of revenue (the money it makes from sales) is selling ads to businesses that want to reach the billions of people using these free apps. It is also spending heavily to develop future technology like virtual reality headsets, a big bet that is not yet making money.
How the company got here
Meta started in 2004 as "TheFacebook," a website created by Mark Zuckerberg to connect Harvard students. It quickly grew into the world's largest social network, renaming itself Facebook, Inc. in 2005. Over the years, it bought other popular apps, including Instagram in 2012 and WhatsApp in 2014, to expand its reach. In 2021, the company changed its name to Meta Platforms to signal a major shift in focus toward building the metaverse, a future version of the internet combining virtual and augmented reality.
What it actually does
Meta builds technologies that let people connect with friends, family, and communities. Most people know Meta through its popular social media and messaging apps like Facebook, Instagram, WhatsApp, and Messenger. The company also develops virtual reality (VR) headsets, smart glasses, and other hardware to create more immersive digital experiences. The vast majority of its money comes from selling ads to businesses that want to reach the billions of people using its free apps.
Family of Apps
This is Meta's main business and includes the apps you likely use every day: Facebook, Instagram, Messenger, WhatsApp, and the newer text-based app, Threads. This segment makes money almost entirely from advertising. Businesses pay Meta to show ads to specific groups of people based on their interests, age, and location, which you see in your feeds and stories. This part of the company is extremely profitable and funds all of Meta's other projects, generating nearly all of the company's total revenue (the total amount of money a company brings in from its sales).
Reality Labs
This is Meta's division focused on the future, building hardware and software for augmented reality (AR) and virtual reality (VR). Its main products are the Meta Quest VR headsets, which let you play games and have social experiences in virtual worlds, and Ray-Ban Meta smart glasses that can take photos and use AI. This segment makes money by selling these devices directly to consumers. Reality Labs is a small slice of the company's sales and is currently losing a lot of money, as it represents a huge, long-term investment in what management believes will be the next major way we interact with computers.
What management is betting on now
Meta's main strategic priorities (the key areas a company focuses on for future growth) are artificial intelligence (AI) and the metaverse. The company is investing billions in AI to improve content recommendations on Facebook and Instagram, making the apps more engaging and the ads more effective. Simultaneously, it continues to spend heavily on its Reality Labs division to build the hardware and software for the metaverse, believing that VR and AR will eventually become the next major computing platform after smartphones.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$11.20B
FY2024 Q3
$16.47B
FY2024 Q4
$13.56B
FY2025 Q1
$11.09B
FY2025 Q2
$9.02B
FY2025 Q3
$11.17B
FY2025 Q4
$14.83B
FY2026 Q1
$13.23B
Revenue
$56.31B
Net income
$26.77B
Diluted EPS
10.44
Operating cash flow
$32.23B
Free cash flow
$13.23B
Fetching…
Sources
Revenue
$59.89B
Net income
$22.77B
Diluted EPS
8.87
Operating cash flow
$36.21B
Free cash flow
$14.83B
Fetching…
Sources
Revenue
$51.24B
Net income
$2.71B
Diluted EPS
1.05
Operating cash flow
$30.00B
Free cash flow
$11.17B
Fetching…
Sources
Revenue
$47.52B
Net income
$18.34B
Diluted EPS
7.14
Operating cash flow
$25.56B
Free cash flow
$9.02B
Fetching…
Sources
Revenue
$42.31B
Net income
$16.64B
Diluted EPS
6.43
Operating cash flow
$24.03B
Free cash flow
$11.09B
Fetching…
Sources
Revenue
$48.39B
Net income
$20.84B
Diluted EPS
7.96
Operating cash flow
$27.99B
Free cash flow
$13.56B
Fetching…
Sources
Revenue
$40.59B
Net income
$15.69B
Diluted EPS
6.03
Operating cash flow
$24.72B
Free cash flow
$16.47B
Fetching…
Sources
Revenue
$39.07B
Net income
$13.46B
Diluted EPS
5.16
Operating cash flow
$19.37B
Free cash flow
$11.20B
Fetching…
Sources
Is it cheap or expensive?
Fair value $457.90 vs current price $627.17
Wall Street consensus is the average analyst price target: $826.01 (80.4% higher than our fair-value estimate).
Our most-likely fair value is $457.90 a share — about 27.0% away from today's price of $627.17, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $5.6B. Interest coverage 71.5x.
Net debt
$5.59B
Interest coverage
71.48x
Meta Platforms, Inc.'s profit covers its interest bill about 71.5 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
META
BASELINE
Meta Platforms, Inc.
Total debt $86.77B Interest coverage 71.48x This is the baseline the peer rows are being compared against.
Total debt $95.88B Interest coverage 175.32x +145% vs META Carries about 2.5x more debt cushion than META.
Total debt $235.54B Interest coverage 35.17x -51% vs META Carries about 2.0x less debt cushion than META.
Total debt $125.43B Interest coverage 53.89x -25% vs META Carries about 1.3x less debt cushion than META.
Total debt $84.71B Interest coverage 33.83x -53% vs META Carries about 2.1x less debt cushion than META.
Total debt $12.81B Interest coverage 503.42x +604% vs META Carries about 7.0x more debt cushion than META.
What you should know
The case for and against META
3 Rewards
2 Risks
Rewards
-
Revenue grew 7.0% last year.
-
Returns 32.9% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 3.6% above its 5-year average P/E.
-
Insider ownership is only 0.1% (peer median: 1.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.42x
Forward P/E
16.95x
P/B
6.53x
P/S
7.41x
EV/EBITDA
14.62x
PEG ratio
0.94x
Profitability
How much profit each dollar creates
Gross margin
81.9%
Operating margin
40.6%
Net margin
32.8%
ROE
32.9%
ROA
16.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.36x
Current ratio
2.35x
Quick ratio
2.11x
Total debt
$86.77B
Total cash
$81.18B
Growth
How the business has been compounding
Revenue TTM
$214.96B
Revenue 5Y CAGR
14.3%
EPS TTM
26.78
EPS 5Y CAGR
39.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$124.00B
Free CF TTM
$46.11B
FCF margin
21.4%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
7.6%
Last ex-div date
2026-06-15