Meta Platforms Trades 26.6% Below $730.56 DCF Valuation
Meta Platforms’ intrinsic value is $730.56 per share based on an earnings-based DCF model assuming 22.7% EPS growth for 10 years, an 11% discount rate and 4% terminal growth. At $536.38, shares show a 26.6% margin of safety, while a free-cash-flow DCF yields $560.10.
1. Earnings-Based DCF Analysis
Meta Platforms' earnings-based DCF uses EPS without NRI of $23.38, an 11% discount rate and growth assumptions of 22.70% for ten years followed by 4% for the next ten years, generating a $730.56 intrinsic value and a 26.58% margin of safety at a $536.38 share price.
2. Traditional Free Cash Flow DCF Model
The traditional DCF uses trailing twelve-month free cash flow per share to derive a $560.10 intrinsic value, reflecting a 4.23% margin of safety and indicating a fair valuation relative to the earnings-based model.
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