Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Meta Platforms's Sloan Ratio for the quarter that ended in Mar. 2026 was 15.96%.
As of Mar. 2026, Meta Platforms has a Sloan Ratio of 15.96%, indicating there is a warning stage of accrual build up.
Meta Platforms (XSWX:META) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Meta Platforms has a Sloan Ratio of 15.96%, indicating there is a warning stage of accrual build up.
Meta Platforms Sloan Ratio % Related Terms
Meta Platforms Sloan Ratio % Historical Data
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The historical data trend for Meta Platforms's Sloan 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.
XSWX:META vs SPOT, NBIS, BIDU: Sloan Ratio % Comparison
For the Internet Content & Information subindustry, Meta Platforms's Sloan Ratio %, along with its competitors' market caps and Sloan 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 Sloan Ratio % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Meta Platforms's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Meta Platforms's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Meta Platforms's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Meta Platforms's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 14911.648 (Jun. 2025 ) + 2156.635 (Sep. 2025 ) + 18143.819 (Dec. 2025 ) + 21078.383 (Mar. 2026 ) = CHF56,290 Mil.
Meta Platforms's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 20786.205 (Jun. 2025 ) + 23882.204 (Sep. 2025 ) + 28858.937 (Dec. 2025 ) + 25371.53 (Mar. 2026 ) = CHF98,899 Mil.
Meta Platforms's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -21109.046 (Jun. 2025 ) + -17393.193 (Sep. 2025 ) + -27243.62 (Dec. 2025 ) + -26514.689 (Mar. 2026 ) = CHF-92,261 Mil.
* 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.
Meta Platforms (XSWX:META) has a Sloan Ratio % of 15.96% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Meta Platforms and its competitors.
Is Meta Platforms' Sloan Ratio % too high?
Meta Platforms' current Sloan Ratio % is 15.96%. Overall, Meta Platforms has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does Meta Platforms' Sloan Ratio % compare to SPOT and NBIS?
Meta Platforms' Sloan Ratio % of 15.96% can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Interactive Media company?
A good Sloan Ratio % depends on the Interactive Media industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Meta Platforms and its competitors. Meta Platforms's current Sloan Ratio % is 15.96%. 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?
Meta Platforms (XSWX:META) has a current Sloan Ratio % of 15.96%. The stock's GF Value™ is CHF661.27, compared to a current price of CHF473.75 — trading 28.4% below its estimated fair value. The current Sloan Ratio % is 15.96%. Meta Platforms' overall GF Score™ is 96/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Meta Platforms (XSWX:META), the current Sloan Ratio % is 15.96% 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 (XSWX:META) Overvalued in 2026?
Based on GuruFocus' analysis, Meta Platforms stock appears to be undervalued.
The current stock price of CHF473.75 is trading 28.4% below its estimated GF Value™ of CHF661.27.
Key valuation signals for XSWX:META:
Sloan Ratio %: 15.96%
GF Value™: CHF661.27 vs. price of CHF473.75 (28.4% below fair value)
No single metric tells the full story. See the XSWX: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.
96GF Score
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