Long-term Opportunity in Meta Platforms Based on Undervaluation

2 months ago

Parkev Tatevosian

"Meta stock is trading at a forward PE of 26. And if you took a look at my DCF calculation earlier, you'll notice that it's trading at a significant discount to my intrinsic value per share calculation of $853. Meta stock is trading at $632. So, all these things being considered, I see this as an opportunity for long-term investors to scoop up Meta shares at a relative discount."

The speaker argues that Meta Platforms is undervalued relative to its DCF-based intrinsic value, trading at $632 compared to an estimated value of $853. They emphasize Meta's effective capital allocation and robust ROIC relative to its cost of capital despite increased capex, framing it as a compelling long-term buying opportunity.

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