Buy Meta Stock Based on Undervaluation and Growth Catalysts

2 months ago

Parkev Tatevosian, CFA

"But when you look at the history going back to January of 2023 and you look at the forward PE, it's trading at near the most expensive it's been according to its trend on this metric. But a company like this trading at a forward PE of 26 I think is attractive. Furthermore, I conduct my own proprietary discounted cash flow valuations on businesses I'm following and the valuation I calculated for Meta. The fair value for this stock in my calculation is $853. The current market price is $640. So whether I'm looking at this valuation on the forward PE basis or whether I'm looking at my proprietary PCF, Meta Stock looks undervalued. And so I think and I will reiterate my buy rating for Meta Stock at current market prices."

The speaker highlights that despite Meta trading at a forward PE of 26, the company is attractive due to solid revenue growth, operating margins, and attractive cash flow metrics. His proprietary discounted cash flow analysis values the stock at $853 compared to a current market price of $640, prompting a reaffirmed buy rating for Meta Stock.

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