"Meta Platforms is the world's leading social technology company, operating a family of apps including Facebook, Instagram, WhatsApp, and Messenger, alongside its emerging virtual and augmented reality ecosystem under Reality Labs. With over 3 billion users across its platforms, Meta continues to dominate global digital advertising, while investing heavily in AI-driven engagement, short-form video monetization, and metaverse infrastructure. Over the past few years, Meta has shifted focus from pure user growth to efficiency, automation, and profitability."
"Forecasted Free Cash Flows (in billions USD) 2025: $52.0 → PV: $47.3 2026: $55.0 → PV: $45.5 2027: $58.0 → PV: $43.7 2028: $61.0 → PV: $42.0 2029: $64.0 → PV: $40.4 Total Present Value of FCFs = $218.9B Terminal Value Calculation Using perpetuity growth model with 2029 FCF = $64B: TV = (64 × 1.03) ÷ (0.10 − 0.03) = $943.4B Present Value of Terminal Value = $595.0B"
"Net Debt Cash & Equivalents: $77.8B Total Debt: $49.0B Net Debt = -$28.8B (Net Cash Position) Equity Value & Per-Share Value Equity Value = 813.9B + 28.8B = $842.7B Shares Outstanding: ~2.53B Intrinsic Value per Share ≈ $333 Conclusion DCF Value: $333 Current Price: ~$667 Margin of Safety: -50% Meta Platforms continues to be an exceptional digital cash generator with dominant network effects, a fortress b"
Meta Platforms operates Facebook, Instagram, WhatsApp, and Messenger and develops virtual and augmented reality under Reality Labs, reaching over 3 billion users and dominating digital advertising. The company invests in AI-driven engagement, short-form video monetization, and metaverse infrastructure while prioritizing efficiency, automation, and profitability, generating record margins and free cash flow. A DCF using a 10% discount/WACC and 3% terminal growth forecasts PV of FCFs at $218.9B, terminal PV at $595.0B, and an enterprise value of $813.9B. Net cash of $28.8B yields equity value $842.7B and intrinsic value per share ≈ $333, below the current price.
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