One-glance verdict
Within fair range
$449.61 our estimate vs market $728.08
Wall Street consensus: $794.96 (76.8% higher than our fair-value estimate)
62% above our estimate
Fundamentals snapshot
Meta Platforms, Inc.
META · NMS · Communication Services · Internet Content & Information
Current price
$728.08
52-week range
$520.26 - $779.82
Market cap
$1.85T
Balance sheet
Healthy
71.48x Strong cushion
Net debt $22.06B. 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 13.6% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 21.2% 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 is the company behind familiar apps like Facebook, Instagram, and WhatsApp. It makes the vast majority of its money from selling advertising to businesses that want to reach the billions of people using these free services. The company is also spending heavily to develop future technologies like virtual reality headsets, a big bet on how we might interact online in the future.
How the company got here
Originally named Facebook, the company started in a Harvard dorm room in 2004 as a social networking site for college students. It quickly grew into a global social media giant, connecting billions of people. Over the years, it made significant acquisitions, including the photo-sharing app Instagram in 2012 and the messaging service WhatsApp in 2014, which solidified its market position. In 2021, the parent company rebranded to Meta Platforms to signal its strategic shift and focus on building the metaverse, a future version of the internet with immersive virtual experiences.
What it actually does
Meta is a technology company that builds products to help people connect with friends, family, and communities. You probably know it best for its social media apps like Facebook and Instagram, and messaging services like WhatsApp and Messenger. In addition to these free apps, which make money primarily through advertising, the company is also investing heavily in future technologies. This includes developing virtual and augmented reality hardware, like the Meta Quest headsets, and software to create immersive digital worlds.
Family of Apps
This is Meta's core business and includes its most famous products: Facebook, Instagram, WhatsApp, Messenger, and Threads. These platforms are free for users to connect, share content, and communicate. This segment generates the vast majority of the company's revenue (the money it brings in) by selling advertising to businesses of all sizes that want to reach this large global audience. It is the financial engine that powers the entire company.
Reality Labs
This is Meta's forward-looking division, focused on building the next generation of computing. It is responsible for creating virtual reality (VR) and augmented reality (AR) hardware and software, such as the Meta Quest headsets and Ray-Ban Meta smart glasses. The goal is to develop the 'metaverse,' an immersive digital world where people can interact with each other in 3D. This part of the business is a small but strategically important slice of the company, currently operating at a significant loss (spending more than it earns) as it invests heavily in research and development.
What management is betting on now
Meta's leadership is heavily focused on two main priorities: artificial intelligence (AI) and the metaverse. The company is integrating AI across its Family of Apps to improve content recommendations and ad targeting, which helps keep users engaged and advertisers happy. Simultaneously, it is pouring billions of dollars into its Reality Labs division to build the hardware and software for the metaverse, which it sees as the next major computing platform. This dual strategy uses the immense profits from its established social media business to fund its ambitious, long-term vision for the future of digital connection.
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 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
FY2026 Q2
$1.75B
Revenue
$60.80B
Net income
$15.85B
Diluted EPS
6.18
Operating cash flow
$31.86B
Free cash flow
$1.75B
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $449.61 vs current price $728.08
Wall Street consensus is the average analyst price target: $794.96 (76.8% higher than our fair-value estimate).
Our most-likely fair value is $449.61 a share — about 38.2% away from today's price of $728.08, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $22.1B. Interest coverage 71.5x.
Net debt
$22.06B
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 $112.32B Interest coverage 71.48x This is the baseline the peer rows are being compared against.
Total debt $120.79B Interest coverage 175.32x +145% vs META Carries about 2.5x more debt cushion than META.
Total debt $251.64B Interest coverage 35.17x -51% vs META Carries about 2.0x less debt cushion than META.
Total debt $128.81B Interest coverage 50.88x -29% vs META Carries about 1.4x less debt cushion than META.
Total debt $84.34B Interest coverage 33.83x -53% vs META Carries about 2.1x less debt cushion than META.
Total debt $16.65B Interest coverage 17.16x -76% vs META Carries about 4.2x less debt cushion than META.
What you should know
The case for and against META
3 Rewards
2 Risks
Rewards
-
Revenue grew 13.6% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 0.3% with 3-year payout history.
Risks
-
Stock trades 21.2% 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)
27.40x
Forward P/E
20.86x
P/B
7.10x
P/S
8.13x
EV/EBITDA
17.07x
PEG ratio
0.96x
Profitability
How much profit each dollar creates
Gross margin
81.7%
Operating margin
34.8%
Net margin
29.8%
ROE
29.8%
ROA
14.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.43x
Current ratio
2.23x
Quick ratio
1.99x
Total debt
$112.32B
Total cash
$90.26B
Growth
How the business has been compounding
Revenue TTM
$228.25B
Revenue 5Y CAGR
14.3%
EPS TTM
26.57
EPS 5Y CAGR
39.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$130.30B
Free CF TTM
$46.11B
FCF margin
20.2%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
7.9%
Last ex-div date
2026-09-21