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The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-07-22), Meta Platforms's 3-Year Sortino Ratio is 4.81.
Meta Platforms (XSWX:META) 3-Year Sortino Ratio Explanation
The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
Meta Platforms 3-Year Sortino Ratio Related Terms
XSWX:META vs SPOT, NBIS, BIDU: 3-Year Sortino Ratio Comparison
For the Internet Content & Information subindustry, Meta Platforms's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino 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 3-Year Sortino Ratio vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Meta Platforms's 3-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where Meta Platforms's 3-Year Sortino Ratio falls into.
The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
Meta Platforms (XSWX:META) has a 3-Year Sortino Ratio of 4.81 as of Jul. 22, 2026. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Meta Platforms and its competitors.
Is Meta Platforms' 3-Year Sortino Ratio too high?
Meta Platforms' current 3-Year Sortino Ratio is 4.81. Overall, Meta Platforms has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does Meta Platforms' 3-Year Sortino Ratio compare to SPOT and NBIS?
Meta Platforms' 3-Year Sortino Ratio of 4.81 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 3-Year Sortino Ratio for an Interactive Media company?
A good 3-Year Sortino Ratio depends on the Interactive Media industry context. However, 3-Year Sortino 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 3-Year Sortino Ratio mean?
A high 3-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Meta Platforms and its competitors. Meta Platforms's current 3-Year Sortino Ratio is 4.81. 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 3-Year Sortino Ratio of 4.81. The stock's GF Value™ is CHF666.97, compared to a current price of CHF525.00 — trading 21.3% below its estimated fair value. The current 3-Year Sortino Ratio is 4.81. 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 3-Year Sortino Ratio calculated?
3-Year Sortino Ratio is calculated from a company's financial statements. For Meta Platforms (XSWX:META), the current 3-Year Sortino Ratio is 4.81 as of Jul. 22, 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 CHF525.00 is trading 21.3% below its estimated GF Value™ of CHF666.97.
Key valuation signals for XSWX:META:
3-Year Sortino Ratio: 4.81
GF Value™: CHF666.97 vs. price of CHF525.00 (21.3% 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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