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Meta Platforms PS Ratio

: 4.53 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Meta Platforms's share price is $192.24. Meta Platforms's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2022 was $42.42. Hence, Meta Platforms's PS Ratio for today is 4.53.

Good Sign:

Meta Platforms Inc stock PS Ratio (=4.78) is close to 10-year low of 4.34

The historical rank and industry rank for Meta Platforms's PS Ratio or its related term are showing as below:

FB' s PS Ratio Range Over the Past 10 Years
Min: 4.34   Med: 12.37   Max: 22.01
Current: 4.61

During the past 12 years, Meta Platforms's highest PS Ratio was 22.01. The lowest was 4.34. And the median was 12.37.

FB's PS Ratio is ranked worse than
64.24% of 590 companies
in the Interactive Media industry
Industry Median: 2.78 vs FB: 4.61

Meta Platforms's Revenue per Sharefor the three months ended in Mar. 2022 was $10.18. Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2022 was $42.42.

Good Sign:

Meta Platforms Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Meta Platforms was 29.90% per year. During the past 3 years, the average Revenue per Share Growth Rate was 29.20% per year. During the past 5 years, the average Revenue per Share Growth Rate was 32.80% per year. During the past 10 years, the average Revenue per Share Growth Rate was 39.10% per year.

During the past 12 years, Meta Platforms's highest 3-Year average Revenue per Share Growth Rate was 55.20% per year. The lowest was 29.20% per year. And the median was 43.20% per year.

Back to Basics: PS Ratio


Meta Platforms PS Ratio Historical Data

The historical data trend for Meta Platforms's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Meta Platforms Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.83 6.86 8.35 9.18 8.15

Meta Platforms Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
PS Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.02 9.58 8.70 8.15 5.24

Competitive Comparison

For the Internet Content & Information subindustry, Meta Platforms's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Meta Platforms PS Ratio Distribution

For the Interactive Media industry and Communication Services sector, Meta Platforms's PS Ratio distribution charts can be found below:

* The bar in red indicates where Meta Platforms's PS Ratio falls into.



Meta Platforms PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Meta Platforms's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=192.24/42.423
=4.53

Meta Platforms's Share Price of today is $192.24.
Meta Platforms's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $42.42.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Meta Platforms  (NAS:FB) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Meta Platforms PS Ratio Related Terms

Thank you for viewing the detailed overview of Meta Platforms's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Meta Platforms Business Description

Meta Platforms logo
Industry
Address
1601 Willow Road, Menlo Park, CA, USA, 94025
Meta is the world's largest online social network, with 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Meta refers to this as Facebook Watch. The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm's total revenue, with 50% coming from the U.S. and Canada and 25% from Europe. With gross margins above 80%, Meta operates at a 30%-plus margin.
Executives
Newstead Jennifer officer: VP and General Counsel C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Fischer David B. officer: Chief Revenue Officer C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Wehner David M. officer: Chief Financial Officer C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Taylor Susan J.s. officer: Chief Accounting Officer C/O LINKEDIN CORPORATION 2029 STIERLIN COURT MOUNTAIN VIEW CA 94043
Kimmitt Robert M director C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Travis Tracey Thomas director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: TRAVIS TRACEY THOMAS a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Sandberg Sheryl director, officer: Chief Operating Officer 1 FACEBOOK WAY MENLO PARK CA 94025
Killefer Nancy director 3170 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Houston Andrew director 333 BRANNAN STREET SAN FRANCISCO CA 94107
Schroepfer Michael Todd officer: Chief Technology Officer C/O FACEBOOK INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Cox Christopher K officer: Chief Product Officer C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Andreessen Marc L director C/O ARNOLD & PORTER LLP 3 EMBARCADERO CENTER 7TH FLOOR SAN FRANCISCO CA 94111
Alford Peggy director 435 TASSO STREET PALO ALTO CA 94301
Thiel Peter director 9200 SUNSET BOULEVARD SUITE 1110 WEST HOLLYWOOD CA 90069
Zients Jeffrey D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ZIENTS JEFFREY D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

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