Meta Platforms Inc

Watchlist Manager
Meta Platforms Inc Logo
Meta Platforms Inc
Price: 151.74 USD +3.01% Market Closed
Updated: Jan 29, 2023

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Jan 29, 2023.

Estimated DCF Value of one META stock is 148.87 USD. Compared to the current market price of 151.74 USD, the stock is Overvalued by 2%.

Base Case
148.87 USD
Overvaluation 2%
DCF Value
Worst Case
Base Case
Best Case
DCF Value
Worst Case
Base Case
Best Case
DCF Value: 148.87 USD
Meta Platforms Inc Competitors:
DCF Valuation
ZUU Co Ltd
Karnov Group AB (publ)
Alphabet Inc
Planet Inc
NIFTY Lifestyle Co Ltd
Bumble Inc
Kuaishou Technology

Present Value Calculation

The first step in the DCF calculation process is to estimate the company's future free cash flow. Once free cash flow is forecasted, it is discounted at a risk-appropriate discount rate. The resulting value is the present value of the company's free cash flow. You can change any model inputs below.

Available Valuation Models
6 valuation models available
Alpha Spread
Updated on Jan 29, 2023
Default Valuation
Updated on Sep 19, 2022
Set As Default
Thijs Nijenhuis
Updated on Sep 23, 2022
Set As Default
Brendan Bloom
Updated on Aug 8, 2022
Set As Default
Updated on Sep 6, 2022
Set As Default
Sasha burnett
Updated on Dec 9, 2022
Set As Default
Create My Valuation Model
Model Settings
Discount Rate
Forecast Period
5 Years
Terminal Growth
Discount Rate
Terminal Growth
Growth Period
5 Years
Copy as My Model

DCF Model
Base Case Scenario

Rotate your device to view
DCF Model

To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Value Calculation

Depending on which type of operating model is chosen (equity or whole firm valuation model), the resulting value is either the value of equity or the value of the entire firm. In the case of the latter, to move from the value of the firm to the value of equity, liabilities are subtracted and assets are added.

Capital Structure
From Present Value to DCF Value

Present Value 358B USD
+ Cash & Equivalents 14.3B USD
+ Investments 34B USD
Firm Value 406B USD
- Debt 10.4B USD
Equity Value 396B USD
/ Shares Outstanding 2.7B
META DCF Value 148.87 USD
Overvalued by 2%

To view the process of calculating the Present Value of Meta Platforms Inc' future free cash flow, see the Present Value Calculation block.

Valuation Analysis

After the valuation process, in order to gain a deeper understanding of the relationship between risk and opportunity, it is useful to study the dynamic of company's valuation under various inputs to the DCF model in use.

DCF Financials
Financials used in DCF Calculation

123B 181B
Operating Income
32.3B 41.8B
24.5B 31.9B

Sensitivity Analysis
DCF Value Sensitivity Analysis

See Also

Similar Stocks
What is the DCF value of one META stock?

Estimated DCF Value of one META stock is 148.87 USD. Compared to the current market price of 151.74 USD, the stock is Overvalued by 2%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project Meta Platforms Inc's future free cash flow and discount it at a selected discount rate to calculate its Present Value (358B USD).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 148.87 USD per one META share.