Stock In Focus – TAM Stock Screener – Meta Platforms Inc (META)

Johnny HopkinsStock ScreenerLeave a Comment

As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is:

Meta Platforms Inc (META)

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.

A quick look at the share price history (below) over the past twelve months shows that the price is down 61%. Here’s why the company is undervalued.

META Chart

META data by YCharts


Market Cap: $354 Billion

Enterprise Value: $330 Billion

Operating Earnings

Operating Earnings: $39 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 8.30

Free Cash Flow (TTM)

Free Cash Flow: $35 Billion

FCF/EV Yield

FCF/EV Yield: 10.08%

Shareholder Yield:

Shareholder Yield: 13.60%

Other Indicators

Piotroski F-Score: 3

Altman Z-Score: 8.217

ROA (5 Year Avge%): 23

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