Meta Platforms Inc (NASDAQ:META)

135.23 USD -5.05 USD ( -3.6% )
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Meta Platforms Inc

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Oct 5, 2022.

Estimated DCF Value of one META stock is 206.32 USD. Compared to the current market price of 135.23 USD, the stock is Undervalued by 34%.

Base Case
206.32 USD
Undervaluation 34%
DCF Value
Worst Case
Base Case
Best Case
DCF Value
Worst Case
Base Case
Best Case
DCF Value: 206.32 USD
Meta Platforms Inc Competitors:
DCF Valuation
Hypebeast Ltd
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Sohu.com Ltd
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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
5 valuation models available
Alpha Spread
Updated on Oct 5, 2022
Default Valuation
Updated on Sep 19, 2022
Set As Default
Thijs Nijenhuis
Updated on Sep 23, 2022
Set As Default
Updated on Aug 8, 2022
Set As Default
Updated on Sep 6, 2022
Set As Default
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Model Settings
Discount Rate
Forecast Period
5 Years
Terminal Growth
Discount Rate
Terminal Growth
Growth Period
5 Years
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DCF Model
Base Case Scenario

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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 558B USD
Equity Value 558B USD
/ Shares Outstanding 2.7B
META DCF Value 206.32 USD
Undervalued by 34%

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

136B 233B
Net Income
33.5B 53B
33.5B 53B

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 206.32 USD. Compared to the current market price of 135.23 USD, the stock is Undervalued by 34%.

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 (558B 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 206.32 USD per one META share.