Meta Platforms Stock Return On Equity
| META Stock | USD 716.92 4.85 0.68% |
By evaluating key metrics such as revenue growth, profitability, cash flow trends, and balance sheet strength, investors can better assess Meta Platforms' long-term financial health and intrinsic value.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.34 | 0.36 |
Meta | Return On Equity | Build AI portfolio with Meta Stock |
Meta Platforms Company Return On Equity Analysis
Meta Platforms' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Meta Platforms Return On Equity | 0.41 |
Most of Meta Platforms' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Meta Platforms is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Meta Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Meta Platforms is extremely important. It helps to project a fair market value of Meta Stock properly, considering its historical fundamentals such as Return On Equity. Since Meta Platforms' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Meta Platforms' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Meta Platforms' interrelated accounts and indicators.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Meta Total Stockholder Equity
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Based on the latest financial disclosure, Meta Platforms has a Return On Equity of 0.4065. This is 96.08% lower than that of the Interactive Media & Services sector and significantly higher than that of the Communication Services industry. The return on equity for all United States stocks is notably lower than that of the firm.
Meta Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Meta Platforms' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Meta Platforms could also be used in its relative valuation, which is a method of valuing Meta Platforms by comparing valuation metrics of similar companies.Meta Platforms is currently under evaluation in return on equity category among its peers.
Meta Platforms ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Meta Platforms' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Meta Platforms' managers, analysts, and investors.Environmental | Governance | Social |
Meta Fundamentals
| Return On Equity | 0.41 | ||||
| Return On Asset | 0.18 | ||||
| Profit Margin | 0.40 % | ||||
| Operating Margin | 0.43 % | ||||
| Current Valuation | 1.83 T | ||||
| Shares Outstanding | 2.17 B | ||||
| Shares Owned By Insiders | 0.07 % | ||||
| Shares Owned By Institutions | 79.78 % | ||||
| Number Of Shares Shorted | 23.8 M | ||||
| Price To Earning | 9.30 X | ||||
| Price To Book | 9.36 X | ||||
| Price To Sales | 10.00 X | ||||
| Revenue | 164.5 B | ||||
| Gross Profit | 146.56 B | ||||
| EBITDA | 86.88 B | ||||
| Net Income | 62.36 B | ||||
| Cash And Equivalents | 40.49 B | ||||
| Cash Per Share | 15.06 X | ||||
| Total Debt | 49.06 B | ||||
| Debt To Equity | 0.13 % | ||||
| Current Ratio | 2.52 X | ||||
| Book Value Per Share | 77.53 X | ||||
| Cash Flow From Operations | 91.33 B | ||||
| Short Ratio | 2.13 X | ||||
| Earnings Per Share | 27.56 X | ||||
| Price To Earnings To Growth | 1.98 X | ||||
| Target Price | 868.26 | ||||
| Number Of Employees | 75.94 K | ||||
| Beta | 1.2 | ||||
| Market Capitalization | 1.79 T | ||||
| Total Asset | 276.05 B | ||||
| Retained Earnings | 102.51 B | ||||
| Working Capital | 66.45 B | ||||
| Annual Yield | 0 % | ||||
| Net Asset | 276.05 B | ||||
| Last Dividend Paid | 2.05 |
About Meta Platforms Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Meta Platforms's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Meta Platforms using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Meta Platforms based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Meta Platforms offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Meta Platforms' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Meta Platforms Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Meta Platforms Stock:Check out Meta Platforms Piotroski F Score and Meta Platforms Altman Z Score analysis. For information on how to trade Meta Stock refer to our How to Trade Meta Stock guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Interactive Media & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Meta Platforms. If investors know Meta will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Meta Platforms listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.384 | Dividend Share 2.05 | Earnings Share 27.56 | Revenue Per Share | Quarterly Revenue Growth 0.216 |
The market value of Meta Platforms is measured differently than its book value, which is the value of Meta that is recorded on the company's balance sheet. Investors also form their own opinion of Meta Platforms' value that differs from its market value or its book value, called intrinsic value, which is Meta Platforms' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Meta Platforms' market value can be influenced by many factors that don't directly affect Meta Platforms' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Meta Platforms' value and its price as these two are different measures arrived at by different means. Investors typically determine if Meta Platforms is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Meta Platforms' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.