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Meta Platforms (NAS:META) GF Value Rank

: 4 (As of Today)
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Meta Platforms has the GF Value Rank of 4.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Internet Content & Information subindustry, Meta Platforms's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

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

* The bar in red indicates where Meta Platforms's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.



Meta Platforms GF Value Rank Related Terms

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


Meta Platforms (NAS:META) Business Description

Meta Platforms logo
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
Susan J Li officer: Chief Financial Officer ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Javier Olivan officer: Chief Operating Officer 62 RIDGE VIEW DRIVE, ATHERTON X1 94027
Andrew Bosworth officer: Chief Technology Officer C/O META PLATFORMS INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Nicholas Clegg officer: President, Global Affairs C/O META PLATFORMS INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Tony Xu director C/O DOORDASH, INC., 303 2ND STREET, SOUTH TOWER, 8TH FLOOR, SAN FRANCISCO CA 94107
Marne L. Levine officer: Chief Business Officer C/O CHEGG, INC., 3990 FREEDOM CIRCLE, SANTA CLARA CA 95054
Christopher K Cox officer: Chief Product Officer C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Marc L Andreessen director C/O ARNOLD & PORTER LLP, 3 EMBARCADERO CENTER 7TH FLOOR, SAN FRANCISCO CA 94111
Kenneth I Chenault director AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
Jeffrey D Zients director
Peggy Alford director 435 TASSO STREET, PALO ALTO CA 94301
Peter Thiel director 9200 SUNSET BOULEVARD, SUITE 1110, WEST HOLLYWOOD CA 90069
Andrew Houston director 333 BRANNAN STREET, SAN FRANCISCO CA 94107
Robert M Kimmitt director C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Sheryl Sandberg officer: Chief Operating Officer 1 FACEBOOK WAY, MENLO PARK CA 94025

Meta Platforms (NAS:META) Headlines

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