META — Meta Platforms, Inc.
Snapshot dated October 21, 2026.
Meta Platforms, Inc. operates a suite of social media applications, primarily Facebook, Instagram, WhatsApp, and Messenger, which connect billions of global users. The company generates the vast majority of its revenue by selling digital advertising space across these platforms, leveraging granular user data to offer targeted placement to businesses of all sizes. Its operations are divided into two main reportable segments: Family of Apps, which encompasses its core social networking tools, and Reality Labs, the unit focused on virtual and augmented reality hardware and software, including the Quest headset line and metaverse development. With a massive global footprint and millions of active advertisers, Meta functions as a dominant player in the digital advertising landscape, competing primarily with Alphabet, TikTok, and Amazon for total digital ad spend. Recently, the company has pivoted its infrastructure toward integrating generative AI models into its advertising recommendation algorithms and core user interfaces to increase engagement.
Fair Value / Share
$381.64
Price on October 21, 2026
$703.23
Upside to fair value
-45.73%
Data by Equibles and SEC filings. Figures are as of October 21, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$703.23
Market Cap
$1,804,488,180,000
Net Income (TTM)
$68,098,000,000
Diluted Shares
2.57 billion
EPS (TTM)
$26.54
Earnings Yield
3.77%
3.8% vs ~4-5% bonds · Internet Content & Information median 5.9% (26 companies, excl. META)
Show the 26 companies behind the medianHide the companies behind the median
| Company | Net income (TTM) | Market cap | Earnings yield |
|---|---|---|---|
| GOOGLAlphabet Inc. | $244.2B | $4.2T | 5.9% |
| SPOTSpotify Technology S.A. | $3.1B | $108.2B | 2.9% |
| RDDTReddit, Inc. | $871.1M | $29.9B | 2.9% |
| TMETencent Music Entertainment Group | $1.3B | $13.7B | 9.3% |
| PINSPinterest, Inc. | $248.9M | $13B | 1.9% |
| SNAPSnap Inc | -$311.2M | $10.8B | -2.9% |
| MTCHMatch Group, Inc. | $707.8M | $10.7B | 6.6% |
| ZGZillow Group, Inc. | $55M | $7.3B | 0.8% |
| PPLIPeople Inc | $336.3M | $2.9B | 11.5% |
| RUMRUM Group Inc. | -$158.4M | $2.9B | -5.5% |
| CARGCarGurus, Inc. | $175.9M | $2.8B | 6.2% |
| ATHMAutohome Inc. | $137.6M | $2.3B | 6.0% |
| STUBStubHub Holdings, Inc. | -$1.8B | $2.3B | -77.9% |
| DJTTrump Media & Technology Group Corp. | -$1.3B | $1.8B | -72.5% |
| WBTNWEBTOON Entertainment Inc. | -$343.9M | $1.3B | -26.0% |
| UPWKUpwork, Inc | $101.8M | $1.1B | 9.3% |
| YELPYelp Inc | $126.5M | $1.1B | 11.7% |
| NXDRNextdoor Holdings, Inc. | -$30.4M | $1B | -3.0% |
| TBLATaboola.com Ltd. | $118.8M | $932M | 12.7% |
| EVEREverQuote, Inc. | $114.5M | $800.6M | 14.3% |
| BMBLBumble Inc. | -$517.7M | $784.6M | -66.0% |
| MAXMediaAlpha, Inc. | $97.6M | $722.3M | 13.5% |
| GRPNGroupon, Inc. | -$125.7M | $682.4M | -18.4% |
| NRDSNerdwallet, Inc. | $65M | $673.1M | 9.7% |
| CARSCars.com Inc. | $34.3M | $564.2M | 6.1% |
| ZIPZiprecruiter, Inc. | $28M | $376.6M | 7.4% |
Peer yields are net income ÷ market cap from the Equibles screener, as of 2026-10-21; META's own figure is EPS ÷ price from SEC filings, so small gaps between the two methods are expected. Data by Equibles.
AI Analysis
Meta Platforms, Inc. currently has an earnings yield of 3.77%, calculated using an EPS of $26.54 and a stock price of $703.23. This yield sits below the 4-5% return typically available from a safe alternative like a bond, and it also trails the 5.94% median earnings yield observed across its industry by 2.2 percentage points. This lower yield implies that the current price assumes continued, potentially accelerated growth in future earnings. For the earnings yield to rise, either the stock price would need to decrease, or the company would need to generate higher annual earnings. This metric does not capture the company's debt levels, future capital expenditure requirements, or the stability of its underlying advertising revenue streams.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$86,926,000,000
Net Working Capital
$53,634,000,000
Net Fixed Assets
$225,724,000,000
Invested Capital
$279,358,000,000
Return on Capital
31.12%
31.12% ROC · 1/2: above the 15% floor, in line with the Internet Content & Information median of 30.4% (21 companies, excl. META)
Show the 25 companies behind the medianHide the companies behind the median
| Company | EBIT (TTM) | Invested capital | ROC |
|---|---|---|---|
| GOOGLAlphabet Inc. | $147.6B | $485.2B | 30.4% |
| SPOTSpotify Technology S.A.The SEC has filings for SPOT but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| RDDTReddit, Inc. | $785M | $1.7B | 45.4% |
| TMETencent Music Entertainment GroupThe SEC has filings for TME but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| PINSPinterest, Inc. | $224.2M | $1.4B | 16.1% |
| SNAPSnap Inc | -$323.8M | $2.6B | -12.7% |
| MTCHMatch Group, Inc. | $987.9M | -$34.5M | Capital-free |
| ZGZillow Group, Inc. | $12M | $619M | 1.9% |
| PPLIPeople Inc | -$157.1M | $331.8M | -47.4% |
| RUMRUM Group Inc. | -$173.5M | $930.5M | -18.6% |
| CARGCarGurus, Inc. | $236.3M | $100.5M | 235.2% |
| ATHMAutohome Inc. | $110M | $2.2B | 4.9% |
| STUBStubHub Holdings, Inc. | -$1.4B | -$1.5B | Loss on negative capital |
| DJTTrump Media & Technology Group Corp.Its reported balance sheet for 2026-06-30 does not pass the app's consistency checks, so its return on capital is withheld. | -$947M | — | Skipped |
| WBTNWEBTOON Entertainment Inc. | -$51.7M | -$45.4M | Loss on negative capital |
| UPWKUpwork, Inc | $118.9M | $214M | 55.6% |
| YELPYelp Inc | $172.8M | $130.7M | 132.2% |
| NXDRNextdoor Holdings, Inc. | -$45.6M | $331.3M | -13.8% |
| TBLATaboola.com Ltd. | $126.9M | $21.7M | 584.6% |
| EVEREverQuote, Inc. | $83.1M | $11.2M | 742.8% |
| BMBLBumble Inc. | -$558.8M | $9.5M | -5889.3% |
| MAXMediaAlpha, Inc.Its invested capital could not be established from its filings. | $84.4M | — | Skipped |
| GRPNGroupon, Inc. | $4.7M | -$247.2M | Capital-free |
| NRDSNerdwallet, Inc. | $88M | $91.5M | 96.2% |
| CARSCars.com Inc. | $83.1M | $98.2M | 84.6% |
The same companies as the earnings yield comparison, each measured with META's own formula — EBIT ÷ (net working capital + net fixed assets) — from its latest SEC filings. Capital-free companies rank above every percentage; skipped companies are not in the median. Data by Equibles and SEC filings.
AI Analysis
Meta Platforms, Inc. produced an EBIT of $86.9B on $279.4B of invested capital, which includes $53.6B in net working capital and $225.7B in net fixed assets. This results in a return on capital of 31.12%. To evaluate this performance, the framework applies two checks: first, whether the result exceeds the 15% floor, and second, how it compares to the Internet Content & Information industry median of 30.4%. Because 31.12% is above the 15% floor and in line with the industry median, the verdict for this company is mixed. This calculation measures how much profit the business generates relative to its tangible operating capital, but it does not account for intangibles like brand value or software assets that may not be fully captured in net fixed assets. Changes in the company's capital intensity, such as significant shifts in infrastructure spending, would directly influence these figures.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
Closest competitors
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| METAMeta Platforms, Inc. | $86.9B | $1.8T | 20.7x |
| GOOGLAlphabet Inc.Both compete directly for global digital advertising budgets across consumer online platforms and video distribution. | $147.6B | $3.8T | 26.0x |
| PINSPinterest, Inc.Both compete for social network users and advertiser dollars focused on visual discovery and e-commerce conversion. | $224.2M | $12.6B | 56.4x |
| SNAPSnap IncBoth compete for user engagement and mobile advertising spend on visual social networking and messaging platforms. | -$323.8M | $11.3B | — |
20.7x — above 10x ✗ · above peer median of 13 companies (12.0x) ✗
Show the 25 companies behind the medianHide the companies behind the median
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| YELPYelp Inc | $172.8M | $1B | 5.8x |
| NRDSNerdwallet, Inc. | $88M | $623.3M | 7.1x |
| EVEREverQuote, Inc. | $83.1M | $610.8M | 7.4x |
| UPWKUpwork, Inc | $118.9M | $879M | 7.4x |
| MAXMediaAlpha, Inc. | $84.4M | $832.8M | 9.9x |
| CARGCarGurus, Inc. | $236.3M | $2.7B | 11.4x |
| CARSCars.com Inc. | $83.1M | $995.7M | 12.0x |
| MTCHMatch Group, Inc. | $987.9M | $14.3B | 14.5x |
| GOOGLAlphabet Inc. | $147.6B | $3.8T | 26.0x |
| RDDTReddit, Inc. | $785M | $28.2B | 35.9x |
| PINSPinterest, Inc. | $224.2M | $12.6B | 56.4x |
| GRPNGroupon, Inc. | $4.7M | $714.1M | 153.0x |
| TBLATaboola.com Ltd. | $126.9M | $1T | 7920.4x |
| SNAPSnap IncOperating loss — listed, but not in the median. | -$323.8M | $11.3B | — |
| PPLIPeople IncOperating loss — listed, but not in the median. | -$157.1M | $3.3B | — |
| RUMRUM Group Inc.Operating loss — listed, but not in the median. | -$173.5M | $1.9B | — |
| STUBStubHub Holdings, Inc.Operating loss — listed, but not in the median. | -$1.4B | $1.9B | — |
| DJTTrump Media & Technology Group Corp.Operating loss — listed, but not in the median. | -$947M | $3.6B | — |
| WBTNWEBTOON Entertainment Inc.Operating loss — listed, but not in the median. | -$51.7M | $785.1M | — |
| NXDRNextdoor Holdings, Inc.Operating loss — listed, but not in the median. | -$45.6M | $618.5M | — |
| BMBLBumble Inc.Operating loss — listed, but not in the median. | -$558.8M | $1.2B | — |
| SPOTSpotify Technology S.A.The SEC has filings for SPOT but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| TMETencent Music Entertainment GroupThe SEC has filings for TME but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| ZGZillow Group, Inc.Its reported balance sheet figures do not hold together for the latest quarter, so its enterprise value cannot be established. | $12M | — | Skipped |
| ATHMAutohome Inc.Its enterprise value could not be established from its filings. | $110M | — | Skipped |
| Peer median13 companies with positive operating earnings | 12.0x |
The same Internet Content & Information companies as the return on capital comparison, each measured with META's own formula — enterprise value ÷ operating earnings — from its latest SEC filings and a quote taken at the same time. Companies with an operating loss are listed but left out of the median; skipped companies could not be measured. Data by Equibles and SEC filings.
Show the enterprise value bridge for each companyHide the enterprise value bridge
META
Debt $83.7B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $28.7B of operating lease liabilities as of 2026-06-30 ($26.2B non-current, $2.4B current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
GOOGL
Debt $100.6B. This is reported total debt, including $2.6B of finance lease obligations ($449M + $2.1B in the filing). Finance leases are counted as debt because they are a borrowing in substance — the company has committed to fixed payments for an asset it effectively owns.
SNAP
Debt $3.5B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $691.1M of operating lease liabilities as of 2026-06-30 ($643.3M non-current, $47.8M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
PINS
Debt $981.1M. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $215.5M of operating lease liabilities as of 2026-06-30. These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — META
AI Analysis
The Acquirer's Multiple for Meta Platforms, Inc. is 20.7x, derived from an enterprise value of $1.8T and operating earnings of $86.9B. Comparing this to peers, Google (GOOGL) has a multiple of 26.0x, and Pinterest (PINS) has a multiple of 56.4x, while Snap (SNAP) is losing money right now, so no multiple can be calculated for it. Among those with a positive multiple, Meta is the lowest at 20.7x and Pinterest is the highest at 56.4x. Meta scores zero of the two checks, as its multiple is above 10x and above the peer median of 13 companies (12.0x). A change in this relative positioning would require either a significant shift in Meta’s operating earnings growth or a material re-rating of the enterprise values assigned to these digital advertising businesses. This metric does not account for the varying levels of capital expenditure requirements or differing debt burdens that may exist across these specific corporate structures.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
5/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
This section is Strong, with the company currently generating positive earnings and substantial cash flow relative to its asset base.
- Return on Assets is positive at 16.52%
- Free Cash Flow to Total Assets is positive at 12.60%
- The accruals check shows high quality of earnings with a Cash Flow from Operations to Net Income ratio of 1.92
A Strong score here indicates that current operations are self-sustaining, though a reduction in the cash-to-net-income ratio would suggest earnings are becoming more reliant on accounting adjustments than cash.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
1/3
This section is Weak, as the company has seen its leverage ratio increase and its liquidity position tighten compared to the prior year.
- Long-term debt to assets rose from 0.1 to 0.16
- The current ratio declined from 2.98 to 2.6
- Net dilution was avoided as diluted weighted-average shares fell from 2.61 billion to 2.57 billion
A Weak result here reflects a more burdened balance sheet, which would only reverse if the company prioritizes debt reduction or rebuilds its current asset buffer.
Change in Leverage (↓ or unchanged)
FailChange in Liquidity (↑ Current Ratio)
FailNet Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
1/4
This section is Weak, driven by year-over-year declines in efficiency and profitability metrics despite a slight expansion in pricing power.
- Return on Assets fell from 22.59% to 16.52%
- Free Cash Flow to Total Assets dropped from 19.59% to 12.60%
- Gross Margin improved slightly from 81.67% to 82.00%
- Asset Turnover slowed from 0.6 to 0.55
This Weak score signals that while the core product remains high-margin, the company is generating less revenue and cash for every dollar invested in the business than it did a year ago.
Change in ROA (↑)
FailChange in FCFTA (↑)
FailChange in Gross Margin (↑)
PassChange in Asset Turnover (↑)
FailFramework conclusion
The company earns a total FS-Score of 5/10, suggesting a mixed financial profile where current profitability is offset by deteriorating stability and operational trends. While the score confirms the business is currently profitable and cash-generative, the decline in efficiency and rising leverage suggest the stock's price may reflect these fundamental headwinds rather than a simple mispricing. This score does not predict future stock performance but measures whether the business is getting structurally stronger or weaker.
- Return on Assets declined year-over-year to 16.52%
- Cash Flow from Operations is 1.92 times larger than Net Income
- The current ratio weakened to 2.6
- Asset Turnover fell to 0.55
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$41B
+ After-Tax Interest Expense
$2.4B
− After-Tax Interest Income
$1.7B
= Unlevered Free Cash Flow
$41.7B
Business value (10-year DCF)
PV of Years 1–10
$367.6B
PV of Terminal Value
$605.1B
= Business Value
$972.7B
Terminal value share
62.21%
Business value → share value
Intrinsic Value (business)
$972.7B
+ Cash & Equivalents
$15.5B
+ Non-operating investments
$74.8B
− Debt
$83.7B
= Shareholders' Value
$979.3B
÷ Diluted Shares
2.57 billion
= Fair Value / Share
$381.64
Divided by 2.57 billion diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-06-30.
Risk bucket → discount rate
low (9%)
Year-1 FCF
$41.7B
Trailing twelve months.
FY2023 $44.1B · FY2024 $54.1B · FY2025 $46.1B
Growth rate (yrs 1–10)
8%
Terminal growth (after yr 10)
3%
Assumed FCF growth: 8%/yr · Revenue growth: last FY +22.2% · 5-yr avg +18.5%/yr
Revenue: FY2020 $86B · FY2021 $117.9B · FY2022 $116.6B · FY2023 $134.9B · FY2024 $164.5B · FY2025 $201B
The growth assumption applies to free cash flow, not revenue. Free cash flow can grow faster or slower than sales as margins change.
AI Analysis
The valuation of Meta begins with a Year-1 free cash flow of $41.7B, a figure derived by adding back after-tax interest to the reported $41B trailing-twelve-month result to isolate the operating business's cash generation. This baseline supports a ten-year growth rate of 8.00%. While this rate sits significantly below Meta's five-year average revenue growth of 18.5% and last year's 22.2% expansion, it reflects the expectation that sustained, elevated capital expenditures for AI infrastructure and Reality Labs will pressure free cash flow margins even as top-line revenue continues to rise. Additionally, the model accounts for the eventual saturation of core social media platforms and the maturation of the digital advertising market. The business is categorized in the low risk bucket with a 9% discount rate, reflecting its entrenched global user base and deep cash reserves, which provide stability despite the cyclical nature of advertising. A terminal growth rate of 3% is applied; this is fixed for all companies in this framework to align with long-term economic assumptions rather than specific business outcomes. The fair value per share of $381.64 is derived by calculating the present value of forecasted cash flows, adding the company’s cash and non-operating investments, and subtracting its debt to reach the total value belonging to shareholders, which is then divided by 2.57 billion diluted shares. Compared to the current price of $703.23, this results in an upside to fair value of -45.73%. Because the current price is above the fair value, there is no buffer for error. Between the two core assumptions, the 8.00% growth rate would alter the result more significantly than the discount rate if future capital allocation strategies shifted.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
3.77% vs ~4-5% bond-yield benchmark
Return on Capital
31.12% ROC · 1/2: above the 15% floor, in line with the Internet Content & Information median of 30.4%
Acquirer's Multiple
20.7x · 0/2: above 10x, above the peer median of 13 companies (12.0x).
FS-Score
5/10 — Solid but mixed
Intrinsic Value
-45.73% upside to fair value
This framework measures Meta Platforms, Inc. through two lenses: operational efficiency and pricing. The quality metrics, represented by the Return on Capital of 31.12% and the FS-Score of 5/10, indicate a business generating returns in line with its sector peers, though the neutral FS-Score suggests mixed performance across key financial health indicators. Conversely, the valuation metrics—the 3.77% Earnings Yield, the 20.7x Acquirer's Multiple, and the -45.73% upside to fair value—all sit on the unfavorable side of their respective benchmarks. There is a distinct tension between the company's operating efficiency and the price required to acquire its earnings. The valuation metrics consistently indicate that the stock is priced significantly above the benchmarks used by this framework, suggesting that the current price reflects high growth expectations rather than a relative value compared to historical medians or bond yields. The overall signal would change most significantly if the FS-Score improved, as a higher score would provide greater evidence of strengthening operational and balance sheet health.
Comments
Notes from readers on META — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
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