Stock · META · Communication Services

Meta Platforms Inc.

United States · Large Cap · listed since 2012 · Revenue 12 mo. $241.6B

Price as of 11/06/2026

7.3

of 10 8 of 11 points High Match To the score

Price: $610.15; 1 Y −11.0%
Market cap: $1.6T
Phase: Growth; revenue growing, core business profitable; Revenue +19.9% a year (3 years)EBIT margin 41.4%Payout 27.4% of operating cash flow

Business and risks according to the 2025 annual report

Summary

Meta Platforms Inc. is around the middle of the Communication Services sector overall

57.3 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Profitability84.5above the middle
Growth88.0above the middle
Valuation29.9below the middle
Momentum53.3around the middle
Quality29.4below the middle
Balance sheet & risk58.7around the middle

Analysis

What the price requires

Capital spending of €62.5B is pushing down FCF: the price requires 15.7% FCF growth a year, 9.2% at a normal investment rate.

If free cash flow stays at €41.4B (2025), it supports €459.8B. The remaining €959.3B of the market value assume it grows 15.7% a year for 10 years and not at all afterwards.

Required FCF growth per year

15.7%

Discount rate

Period

no growth afterwards

Market value breakdown€1.4T market value, price as of 11/06/2026

€459.8B without growth

€959.3B priced-in growth

5 yrs achieved 20.8%
10 yrs achieved 19.3%
priced in 15.7%

Valuation against its own history

Price to operating cash flow 11.8×, within its usual range.

Middle half of 20 quarters: 11.0× to 16.7×, median 13.8×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

3 signs support the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

Expectation below the company's own record priced in 15.7%, achieved at least 19.3%
High, stable gross margin median 81.8%, range 8.2 pp (10 years)
High return on capital every year ROCE at least 18.2% (10 years)

What speaks against it

with respect to the priced-in expectation

EBIT margin falling for three quarters −8.6 pp over the last four reports

AI summary of the 2025 annual report

The business of Meta Platforms Inc. according to its report

A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.

Form 10-K, fiscal year ended 12/31/2025, filed 01/29/2026. Open the report at the SEC

Revenue by segment, fiscal year ended 12/31/2025

Segment	Share	Revenue
Family of Apps	98.9%	$198.8B
Reality Labs	1.1%	$2.2B

From the report's structured data (XBRL), not from the language model. The sum can differ slightly from group revenue.

Business model according to the report

The company earns almost all its revenue by selling advertising placements on its family of apps to marketers.
Quote
Currently, we generate substantially all of our revenue from selling advertising placements on our family of apps to marketers, which is reflected in FoA.
Its current virtual reality products include Meta Quest devices, plus software and content available through the Meta Horizon Store.
Quote
Our current product offerings in VR include our Meta Quest devices, as well as software and content available through the Meta Horizon Store
Marketers buy ads that can appear on Facebook, Instagram, Messenger, Threads, WhatsApp, and third-party apps and websites.
Quote
Marketers purchase ads that can appear in multiple places including on Facebook, Instagram, Messenger, Threads, and WhatsApp, as well as third-party applications and websites.
Its current AI glasses include the Ray-Ban Meta and Oakley Meta glasses, which feature Meta AI, a conversational assistant.
Quote
Our current AI glasses include the Ray-Ban Meta and Oakley Meta glasses, which feature Meta AI, our advanced conversational assistant

Customers according to the report

The majority of the company's marketers use its self-service ad platform to launch and manage their advertising campaigns.
Quote
The majority of our marketers use our self-service ad platform to launch and manage their advertising campaigns.
For its RL products, sales efforts focus on sales to consumers and businesses of Meta Quest products and AI glasses.
Quote
For our RL products, our sales efforts utilize third-party sales channels such as retailers, resellers, and distribution partners, and our direct-to-consumer channel, Meta.com, and several Meta stores. These efforts are focused on driving consumer and enterprise sales and adoption of our Meta Quest portfolio of products and AI glasses.

Competition according to the report

The company competes with online companies that offer connection, sharing, discovery, and communication products, and with companies that sell advertising to businesses wanting to reach consumers.
Quote
We compete with companies providing connection, sharing, discovery, and communication products and services to users online, as well as companies that sell advertising to businesses looking to reach consumers
Competing products and services such as TikTok have reduced some users' engagement with the company's products and services.
Quote
competitive products and services, such as TikTok, that have reduced some users' engagement with our products and services
One factor in competition is how popular, useful, easy to use, well performing, and reliable the company's products are compared with competitors' products.
Quote
the popularity, usefulness, ease of use, performance, and reliability of our products compared to our competitors' products;

Risks according to the report

In 2021 Apple made certain changes to iOS and its data use policies, which reduce the ability of the company and other iOS developers to target and measure advertising.
Quote
For example, in 2021, Apple made certain changes to its products and data use policies in connection with changes to its iOS operating system that reduce our and other iOS developers' ability to target and measure advertising
Investments in Reality Labs reduced the company's overall operating profit in 2025 by approximately 19.19 billion dollars.
Quote
For example, our investments in Reality Labs reduced our 2025 overall operating profit by approximately $19.19 billion
Mark Zuckerberg, the founder, chairman and CEO, is able to vote a majority of the voting power of the company's outstanding capital stock.
Quote
Mark Zuckerberg, our founder, Chairman, and CEO, is able to exercise voting rights with respect to a majority of the voting power of our outstanding capital stock

Since the last quarter

Q2 → Q3 2026

Mostly worse than the previous quarter: 3 of 4 changes for the worse.

Revenue, 12 mo.$228.2B → $241.6B+5.9%better
FCF, 12 mo.$41.0B → $28.7B−30.1%worse
EBIT margin38.1% → 32.9%−5.2 ppworse
FCF margin18.0% → 11.9%−6.1 ppworse

4 more unchanged: Gross margin, Net debt, Shares outstanding, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability84.5above the middleEarns more than the sector: EBIT margin 41.44%, sector 17.12%.

Metric	Stock	Sector median	Position in sector
Return on equity	27.83%	11.44%	Rank 84
Return on capital (Greenblatt)	31.58%	22.01%	Rank 69
EBIT margin	41.44%	17.12%	Rank 96
FCF margin	22.94%	15.81%	Rank 81
Gross margin	82.00%	44.45%	Rank 92

Growth88.0above the middleGrows faster than the sector: Sustainable growth (ROE × retained earnings) 34.68%, sector 9.07%.

Metric	Stock	Sector median	Position in sector
Revenue growth, 1 year	22.17%	4.46%	Rank 90
Earnings growth, 3 years per year	39.86%	5.70%	Rank 90
Earnings growth, 5 years per year	18.41%	6.76%	Rank 75
Sustainable growth (ROE × retained earnings)	34.68%	9.07%	Rank 97

Valuation29.9below the middleValued higher than the sector: EV/sales 7.88, sector 2.84.

Metric	Stock	Sector median	Position in sector
Earnings yield	3.85%	3.92%	Rank 48
FCF yield	2.92%	6.59%	Rank 27
EV/saleslower is better	7.88	2.84	Rank 8
EV/EBITlower is better	19.02	16.58	Rank 37

Momentum53.3around the middleShare price moving about like the sector.

Metric	Stock	Sector median	Position in sector
Share price, 1 year	−11.03%	−11.03%	Rank 50
Share price, 6 months	0.57%	−0.69%	Rank 56
Share price, 3 months	8.18%	4.43%	Rank 68
Distance from 52-week high	−21.53%	−16.85%	Rank 39

Quality29.4below the middleQuality below the sector: Accruals (Sloan) 14.53%, sector −0.38%.

Metric	Stock	Sector median	Position in sector
Accruals (Sloan)lower is better	14.53%	−0.38%	Rank 7
Change in share countlower is better	−1.53%	−0.06%	Rank 73
Dividend streak in years	1	5	Rank 30
Price reaction to results, market-adjusted	−5.86%	0.56%	Rank 8

Balance sheet & risk58.7around the middleRisk about like the sector.

Metric	Stock	Sector median	Position in sector
Equity ratio	59.35%	37.05%	Rank 77
Net debt/EBITDAlower is better	0.02	1.47	Rank 69
Debt to equitylower is better	0.39	0.75	Rank 69
Volatility, 1 yearlower is better	41.18%	31.95%	Rank 20

Ten years in figures

Revenue from $27.6B (2016) to $201.0B (2025), 24.7% a year.

Fiscal years, amounts in USD
Year	Revenue, $B	EBIT margin	FCF, $B	Shares	Net debt, $B
2016	27.6	45.0%	11.6	2.93B	−8.9
2017	40.7	49.7%	17.5	2.96B	−8.1
2018	55.8	44.6%	15.4	2.92B	−9.5
2019	70.7	33.9%	21.2	2.88B	−8.8
2020	86.0	38.0%	23.6	2.89B	−6.9
2021	117.9	39.7%	39.1	2.86B	−2.7
2022	116.6	24.8%	19.0	2.70B	11.9
2023	134.9	34.7%	43.8	2.63B	−4.6
2024	164.5	42.2%	54.1	2.61B	5.2
2025	201.0	41.4%	46.1	2.57B	48.0

7.3 / 10High MatchStockScorer score8 of 11 points

5 of 7 StockScorer Score rules met · How the score is built

Meta Platforms Inc. mainly meets criteria in the Profitability category. Result from 18 strategies checked.

Watch this stock See strategy overview →

How Meta Platforms Inc.'s score is built

Meta Platforms Inc. is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

5 of 7 rules met

8 of 11 points

Free cash flow yield above the sector mediannot met0 of 2 points
Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
Return on equity above the sector medianmet1 of 1 point
Free cash flow margin above the sector medianmet2 of 2 points
Revenue growth above 15%met2 of 2 points
3-year earnings growth above 12% p.a.met1 of 1 point
12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Meta Platforms Inc. stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

Mohanram G-Score: Growth QualityFor growth stocks, the substance check shows what is real investment and what is only an announcement.
High
StockScorer ScoreMeasured against its own sector: quality, valuation, growth and market confirmation.
High
Moat QualityCompanies with an economic moat, recognisable by persistently high returns and defended margins.
High
Earnings Quality: Accrual Check (Sloan)Are the profits real? The Sloan ratio shows book profits that are not backed by cash.
High
Growth Momentum (CAN SLIM principle)Strong earnings growth, confirmed by the price trend. The bet is on strength, not weakness.
Medium
Piotroski F-Score (9-Point Check)Nine hard balance-sheet criteria separate substance from a downward spiral.
Low

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

Balanced GARP
High-Growth / Rule of 40
Altman Z-Score: Stress Test
Undervalued Stocks: Multi-Factor Check
Magic Formula: Value + Quality
Acquirer's Multiple: EV/EBIT Deep Value
Defensive: Low Volatility
Dividend Aristocrats & Continuity
Dividend Quality: 4 Factors
Levermann Strategy (13 Criteria)
PEG Strategy (inspired by Peter Lynch)
Trending Value: Value + Momentum

Open complete overview

Meta Platforms Inc. key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Meta Platforms Inc.

Metric	Stock	Sector
P/E ratio	26.0	21.7
P/B ratio	7.2	2.5
Return on equity (ROE)	27.8%	11.4%
Equity ratio	59.4%	37.1%
Debt-to-equity (D/E)	0.39	0.75
Dividend yield	0.3%	2.8%

Similar stocks in Communication Services

How comparable stocks in the same sector score in the StockScorer model.

Symbol	Company	Rating
META	Meta Platforms Inc.this page
GOOG	Alphabet Inc Class C	High7.3
0700.HK	Tencent Holdings Ltd	locked
6098.T	Recruit Holdings Co Ltd	locked
SPOT	Spotify Technology SA	locked
NBIS	Nebius Group N.V.	locked

Frequently asked questions about Meta Platforms Inc. stock

How does Meta Platforms Inc. stock (META) score in the StockScorer model?

Meta Platforms Inc. stock reaches a StockScorer score of 7.3 out of 10, which is a high match with the rule-based strategies. 5 out of 7 flagship profile rules are met.

What is Meta Platforms Inc.'s P/E ratio?

Meta Platforms Inc.'s P/E ratio is 26.0. The Communication Services sector median is 21.7.

What sector is Meta Platforms Inc. in?

Meta Platforms Inc. is assigned to the Communication Services sector. Its rank within the sector is 57.3 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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