Meta PlatformsTSX:META -0.90%93 ROE % is 46.35% as of Mar. 2026, which is 74% above its 10-year median of 26.67. GuruFocus rates TSX:META with a GF Score™ of 93/100 and a GF Value™ of C$43.14 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 534 Interactive Media companies, Meta Platforms ranks better than 91.57% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Meta Platforms's annualized net income for the quarter that ended in Mar. 2026 was C$146,930 Mil. Meta Platforms's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was C$317,009 Mil. Therefore, Meta Platforms's annualized ROE % for the quarter that ended in Mar. 2026 was 46.35%.
The historical rank and industry rank for Meta Platforms's ROE % or its related term are showing as below:
TSX:META'
s ROE % Range Over the Past 10 Years
Min: 18.52 Med: 26.67 Max: 37.14
Current: 34.1
During the past 13 years, Meta Platforms's highest ROE % was 37.14%. The lowest was 18.52%. And the median was 26.67%.
TSX:META's ROE % is ranked better than 91.57% of 534
companies
in the Interactive Media industry
Industry Median: 2.345
vs TSX:META: 34.10
Meta Platforms (TSX:META) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Meta Platforms ROE % Related Terms
Meta Platforms ROE % Historical Data
* Premium members only.
The historical data trend for Meta Platforms's ROE % 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.
For the Internet Content & Information subindustry, Meta Platforms's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Meta Platforms's ROE % distribution charts can be found below:
* The bar in red indicates where Meta Platforms's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Meta Platforms (TSX:META) has a ROE % of 46.35% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Meta Platforms and its competitors. This is 74% above median its historical median of 26.67. Over the past decade, Meta Platforms' ROE % has ranged from 18.52 to 37.14. According to the industry distribution chart, Meta Platforms ranks #45 out of 534 companies in the Interactive Media industry, placing it in the top 8.4%.
Is Meta Platforms' ROE % too high?
Meta Platforms' current ROE % of 46.35% is 74% above median its 10-year median of 26.67. Over the past 10 years, this metric has ranged from a low of 18.52 to a high of 37.14. The Interactive Media industry median ROE % is 2.35. Meta Platforms' value of 46.35% is 1876.5% above this industry median. Based on the distribution chart, Meta Platforms ranks #45 out of 534 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Meta Platforms has a GF Score™ of 93/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Meta Platforms' ROE % compare to SPOT and NBIS?
According to the Interactive Media industry distribution chart, Meta Platforms ranks #45 out of 534 companies for ROE %. This places Meta Platforms in the top 8% of its industry — outperforming the majority of peers. The industry median ROE % is 2.35. Meta Platforms' value of 46.35% is 1876.5% above this benchmark. Historically, Meta Platforms' own ROE % has ranged from 18.52 to 37.14 over the past decade. While the company's 10-year median is 26.67 vs. the industry median of 2.35, Meta Platforms has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Interactive Media company?
The median ROE % among Interactive Media companies is 2.35, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meta Platforms's current ROE % of 46.35% is 1876.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Meta Platforms and its competitors. For the Interactive Media industry, the median ROE % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meta Platforms's current ROE % is 46.35%, which is 74% above median its own 10-year median of 26.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meta Platforms stock overvalued right now?
Based on GuruFocus' analysis, Meta Platforms (TSX:META) is currently considered Significantly Undervalued. The stock's GF Value™ is C$43.14, compared to a current price of C$29.73 — trading 31.1% below its estimated fair value. The current ROE % is 46.35%, which is 74% above median its 10-year median of 26.67 and 1876.5% above the Interactive Media industry median of 2.35. Meta Platforms' overall GF Score™ is 93/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Meta Platforms (TSX:META), the current ROE % is 46.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Meta Platforms (TSX:META) Overvalued in 2026?
Based on GuruFocus' analysis, Meta Platforms stock appears to be undervalued.
The current stock price of C$29.73 is trading 31.1% below its estimated GF Value™ of C$43.14.
GuruFocus considers Meta Platforms to be Significantly Undervalued.
Key valuation signals for TSX:META:
ROE %: 46.35% (74% above median its 10-year median of 26.67)
GF Value™: C$43.14 vs. price of C$29.73 (31.1% below fair value)
Industry Position: 1876.5% above the Interactive Media median (#45 of 534)
No single metric tells the full story. See the TSX:META stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm's "Family of Apps," its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta's overall sales.
93GF Score
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