US · Nasdaq · META
Meta Platforms (META) stock analysis: valuation and financials
Technology · Computer Software: Programming, Data Processing
$745.68 +3.8% Price as of Oct 12, 2026
Wide-moat ad franchise growing 22% with net cash $6.6B — but capex at 39.1% of revenue halved FCF margin to 18.0%, leaving the base case 2.4% below the $745.68 price. Hold.
- Market cap
- $1.9T
- P/E
- 27.9x
- EV/Sales
- 8.3x
- FCF yield
- 2.2%
- Dividend yield
- 0.3%
- 52-week range
- $525.72 – $777.59
- Next earnings
- Nov 4, 2026
Research as of Oct 12, 2026
Business quality scorecard
- Growth59
- Profitability100
- Cash flow67
- Balance sheet100
- Capital allocation98
- Innovation100
- Valuation56
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Advertisers pay for ad placements across Facebook, Instagram, Messenger, WhatsApp and Threads; Family of Apps is the profit engine at $198.8B FY2025 revenue and 51.6% operating margin, while Reality Labs loses $19.19B.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $117.9B | $116.6B | $134.9B | $164.5B | $201.0B |
| Revenue growth | +37.2% | -1.1% | +15.7% | +21.9% | +22.2% |
| Gross margin | 80.8% | 78.3% | 80.8% | 81.7% | 82.0% |
| Operating margin | 39.6% | 24.8% | 34.7% | 42.2% | 41.4% |
| Net income | $39.4B | $23.2B | $39.1B | $62.4B | $60.5B |
| Free cash flow | $39.0B | $19.3B | $44.1B | $54.1B | $46.1B |
| FCF margin | 33.1% | 16.5% | 32.7% | 32.9% | 22.9% |
Amounts in USD · What is free cash flow?
Margins FY2025 gross margin 82.0% vs 81.7% in FY2024; operating margin 41.4% vs 42.2%. TTM operating margin 38.1%, and Q2 FY2026 fell to 30.9% (Q2 FY2025: 43.0%) as AI infrastructure, compensation and one-off costs outgrew 28% revenue growth.
- Cash flow WatchTTM operating cash flow $130.3B versus net income $68.1B, cash conversion 1.72x; FY2025 OCF $115.8B versus net income $60.5B. Earnings are fully cash-backed, led by non-cash D&A of $22.7B TTM.
- Debt LowNet cash of $6.6B; net debt/EBITDA -0.06x. Total debt rose to $83.66B at Q2 FY2026 from $58.74B at end-FY2025, but leverage remains negative.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- $90.3B
- Total debt
- $83.7B
- Net cash
- $6.6B
- Interest coverage
- 45.3x
- Current ratio
- 2.2x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management StrongExecution: FY2025 revenue $201.0B, up 22.2% y/y, at a 41.4% operating margin and 30.0% net margin; five-year revenue CAGR 18.5% under a founder-CEO in place since 2004.
- Credibility HighRevenue guidance met or beaten in five straight quarters: Q2 FY2025 $47.52B against $42.5-45.5B guided, Q3 FY2025 $51.24B vs $47.5-50.5B, Q4 FY2025 $59.89B vs $56-59B, Q1 FY2026 $56.31B vs $53.5-56.5B and Q2 FY2026 $60.80B vs $58-61B.
Of 5 guided figures checked: 3 beat, 2 in range, 0 missed.
Valuation range
Implied value per share · Price when researched: $745.68
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.