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Meta Platforms Inc
NASDAQ:META

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Meta Platforms Inc Logo
Meta Platforms Inc
NASDAQ:META
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Price: 114.12 USD -6.79% Market Closed
Updated: Dec 7, 2022

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Dec 7, 2022.

Estimated DCF Value of one META stock is 142.91 USD. Compared to the current market price of 114.12 USD, the stock is Undervalued by 20%.

META DCF Value
Base Case
142.91 USD
Undervaluation 20%
DCF Value
Price
Worst Case
Base Case
Best Case
142.91
DCF Value
Worst Case
Base Case
Best Case
Hide
DCF Value: 142.91 USD
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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 Dec 7, 2022
Default Valuation
Alex
Updated on Sep 19, 2022
Set As Default
Thijs Nijenhuis
Updated on Sep 23, 2022
Set As Default
Brendan
Updated on Aug 8, 2022
Set As Default
Zoltan
Updated on Sep 6, 2022
Set As Default
Create My Valuation Model
Model Settings
Discount Rate
8.45%
Forecast Period
5 Years
Terminal Growth
0%
Discount Rate
8.45%
Terminal Growth
0%
Growth Period
5 Years
Copy as My Model

DCF Model
Base Case Scenario

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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 341B USD
+ Cash & Equivalents 14.3B USD
+ Investments 34B USD
Firm Value 389B USD
- Debt 10.4B USD
Equity Value 379B USD
/ Shares Outstanding 2.7B
META DCF Value 142.91 USD
Undervalued by 20%

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

Revenue
125B 187B
Operating Income
32.4B 40.3B
FCFF
24.4B 30.5B

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 142.91 USD. Compared to the current market price of 114.12 USD, the stock is Undervalued by 20%.

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 (341B 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 142.91 USD per one META share.