As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our Stock Screeners is:
Meta Platforms Inc (META)
Meta is the world’s largest online social network, with nearly 4 billion family of apps monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. 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 more than 45% coming from the US and Canada and over 20% from Europe.
A quick look at the share price history (below) over the past twelve months shows that the price is up 79%. Here’s why the company is undervalued.
Key Stats
Market Cap: $1.09 Trillion
Enterprise Value: $1.07 Trillion
Operating Earnings
Operating Earnings: $57.80 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 18.50
Free Cash Flow (TTM)
Free Cash Flow: $49.52 Billion
FCF/EV Yield %:
FCF/EV Yield: 4.54
Shareholder Yield %:
Shareholder Yield: 2.40
Other Indicators
Piotroski F Score: 8.00
Altman Z-Score (TTM): 12.27
ROA (5 Year Avge%): 26
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