A Business at a Glance
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Meta Platforms, Inc.
META
$1.5T
Mkt Cap
$595.19
-1.80%
Meta Platforms, Inc. (META) has a current P/E ratio of 25.3, compared to its historical median P/E of 26.2. The stock is currently considered Fair based on its historical valuation range.
Meta Platforms, Inc. (META) has a 5-year average return on invested capital (ROIC) of 37.9%. This indicates strong capital allocation and a potential competitive advantage.
Meta Platforms, Inc. (META) has a market capitalization of $1.5T. It is classified as a mega-cap stock.
Yes, Meta Platforms, Inc. (META) pays a dividend with a trailing twelve-month yield of 0.09%. The company also returns capital through share buybacks, with a buyback yield of 0.88%.
Based on historical P/E analysis, Meta Platforms, Inc. (META) appears fair. The current P/E of 25.3 is 3% below its historical median of 26.2. The estimated fair value CAGR (P/E method) is 17.6%.
Meta Platforms, Inc. (META) operates in the Services-Computer Programming, Data Processing, Etc. industry, within the Technology sector.
Meta Platforms, Inc. (META) reported annual revenue of $201.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Meta operates a diversified technology platform centered on social connection, content discovery, and digital advertising. The company's primary revenue driver is the Family of Apps segment—comprising Facebook, Instagram, Messenger, WhatsApp, Threads, and Meta AI—which generates substantially all revenue through advertising placements sold to marketers seeking to reach users across multiple marketing objectives and demographics. The advertising model is self-service for most marketers, supplemented by a global sales force serving larger advertisers and agencies, with ads appearing across Meta's apps and third-party websites. Reality Labs, a separate segment, develops virtual and augmented reality hardware (Meta Quest devices, Ray-Ban Meta and Oakley Meta AI glasses, and the Orion AR prototype) and software experiences, generating revenue from consumer hardware sales and content, though the segment operates at a loss as it represents long-term infrastructure investment for what management views as the next computing platform. Meta's competitive moat derives from its massive user base across multiple platforms, proprietary AI models and recommendation systems that drive engagement and ad performance, and significant infrastructure investments in data centers and compute capacity. The company serves billions of daily active users globally and reaches marketers of all sizes, from small businesses to large enterprises, while also investing heavily in open-source AI models and tools to foster ecosystem innovation.
【AI infrastructure and superintelligence focus】 Management expects 2026 to accelerate AI product development and deployment, with new models and agents beginning to demonstrate value across the platform, though meaningful revenue contribution from generative AI is not anticipated until future years. The company is prioritizing massive infrastructure investments to support frontier AI model training and personal superintelligence capabilities, with compute capacity becoming increasingly central to product quality, organizational productivity, and competitive positioning. Reality Labs losses are expected to remain similar to 2025 levels and represent a peak before gradual reduction, while the company continues executing on wearables and AR initiatives as part of its long-term vision for the next computing platform. Management expects continued strong engagement and monetization improvements across the Family of Apps through advances in recommendation systems, content understanding via large language models, and enhanced advertising tools, with particular momentum anticipated in the second half of 2026 as new capacity comes online and product initiatives mature.
| Metric | Target | Period |
|---|---|---|
| Full Year 2026 Total Expenses | $162 billion–$169 billion | FY 2026 |
| 2026 Capital Expenditures | $125 billion–$145 billion | FY 2026 |
| 2026 Tax Rate | 13%–16% | FY 2026 |
| Reality Labs Operating Losses | Similar to 2025 levels | FY 2026 |
Full Year 2026 Total Expenses (FY 2026): “We expect full year 2026 total expenses to be in the range of $162 billion-$169 billion, unchanged from our prior outlook.”
2026 Capital Expenditures (FY 2026): “We anticipate 2026 capital expenditures, including principal payments on finance leases, to be in the range of $125 billion-$145 billion, increased from our prior range of $115 billion-$135 billion.”
2026 Tax Rate (FY 2026): “Absent any changes to our tax landscape, we expect our tax rate for the remaining quarters of 2026 to be between 13% and 16%.”
Reality Labs Operating Losses (FY 2026): “I expect Reality Labs losses this year to be similar to last year, and this will likely be the peak as we start to gradually reduce our losses going forward while continuing to execute on our vision.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 215.0B | 201.0B | 164.5B | 134.9B | 116.6B | 117.9B |
| Net Income | 70.6B | 60.5B | 62.4B | 39.1B | 23.2B | 39.4B |
| EPS | $27.45 | $23.49 | $23.86 | $14.87 | $8.59 | $13.77 |
| Free Cash Flow | 48.3B | 46.1B | 54.1B | 44.1B | 19.3B | 39.0B |
| ROIC | 31.7% | 33.1% | 47.1% | 35.0% | 24.7% | 49.5% |
| Gross Margin | - | 82.0% | 81.7% | 80.8% | 78.3% | 76.1% |
| Debt/Equity | 0.24 | 0.39 | 0.27 | 0.24 | 0.21 | 0.11 |
| Dividends/Share | $0.53 | $2.10 | $2.00 | $0.00 | $0.00 | - |
| Operating Income | 88.6B | 83.3B | 69.4B | 46.8B | 28.9B | 46.8B |
| Operating Margin | 41.2% | 41.4% | 42.2% | 34.7% | 24.8% | 39.6% |
| ROE | 29.0% | 30.2% | 37.1% | 28.0% | 18.5% | 31.1% |
| Shares Outstanding | 2,564M | 2,574M | 2,614M | 2,629M | 2,701M | 2,859M |
Meta Platforms, Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
Meta Platforms, Inc. trades at 25.3x trailing earnings, compared to its 15-year median P/E of 26.2x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 28.2x vs a median of 28.5x. The company's 5-year average ROIC is 37.9% with a gross margin of 79.8%. Total shareholder yield (buybacks) is 1.0%. At current prices, the estimated annualized return to fair value is +22.0%.
Meta Platforms, Inc. (META) has a net profit margin of 30.1%. This is a strong margin indicating high profitability.
Meta Platforms, Inc. (META) generated $46.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Meta Platforms, Inc. (META) has a debt-to-equity ratio of 0.39. This indicates a conservatively financed balance sheet.
Meta Platforms, Inc. (META) reported earnings per share (EPS) of $23.49 in its most recent fiscal year.
Meta Platforms, Inc. (META) has a return on equity (ROE) of 30.2%. This indicates the company generates strong returns for shareholders.
Meta Platforms, Inc. (META) has a 5-year average gross margin of 79.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for Meta Platforms, Inc. (META), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Meta Platforms, Inc. (META) has a book value per share of $84.41, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to accelerate AI product development and deployment, with new models and agents beginning to demonstrate value across the platform, though meaningful revenue contribution from generative AI is not anticipated until future years. The company is prioritizing massive infrastructure investments to support frontier AI model training and personal superintelligence capabilities, with compute capacity becoming increasingly central to product quality, organizational productivity, and competitive positioning. Reality Labs losses are expected to remain similar to 2025 levels and represent a peak before gradual reduction, while the company continues executing on wearables and AR initiatives as part of its long-term vision for the next computing platform. Management expects continued strong engagement and monetization improvements across the Family of Apps through advances in recommendation systems, content understanding via large language models, and enhanced advertising tools, with particular momentum anticipated in the second half of 2026 as new capacity comes online and product initiatives mature.
Based on recent SEC filings and earnings calls, Meta Platforms, Inc. (META) has provided the following forward guidance: Full Year 2026 Total Expenses: $162 billion–$169 billion (FY 2026); 2026 Capital Expenditures: $125 billion–$145 billion (FY 2026); 2026 Tax Rate: 13%–16% (FY 2026); Reality Labs Operating Losses: Similar to 2025 levels (FY 2026).