Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Meta Platforms, Inc. (META)

Company Dividend Discount ModelIndustry: Internet Content & InformationSector: Technology

Valuation Snapshot

Stable Growth$405.61 - $830.73$568.59
Multi-Stage$296.28 - $323.75$309.77
Blended Fair Value$439.18
Current Price$734.38
Upside-40.20%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%1.960.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.34%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)58,528.00
(-) Cash Dividends Paid (M)5,256.00
(=) Cash Retained (M)53,272.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)11,705.607,316.004,389.60
Cash Retained (M)53,272.0053,272.0053,272.00
(-) Cash Required (M)-11,705.60-7,316.00-4,389.60
(=) Excess Retained (M)41,566.4045,956.0048,882.40
(/) Shares Outstanding (M)2,586.502,586.502,586.50
(=) Excess Retained per Share16.0717.7718.90
LTM Dividend per Share2.032.032.03
(+) Excess Retained per Share16.0717.7718.90
(=) Adjusted Dividend18.1019.8020.93
WACC / Discount Rate10.21%10.21%10.21%
Growth Rate5.50%6.50%7.50%
Fair Value$405.61$568.59$830.73
Upside / Downside-44.77%-22.58%13.12%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)58,528.0062,332.3266,383.9270,698.8875,294.3080,188.4382,594.09
Payout Ratio8.98%25.18%41.39%57.59%73.80%90.00%92.50%
Projected Dividends (M)5,256.0015,697.9327,475.1040,716.9955,564.2372,169.5976,399.53

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.21%10.21%10.21%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)14,110.0914,243.8414,377.58
Year 2 PV (M)22,198.0222,620.8323,047.63
Year 3 PV (M)29,569.0930,417.9131,282.83
Year 4 PV (M)36,269.7937,664.6339,099.31
Year 5 PV (M)42,343.9644,389.1946,512.69
PV of Terminal Value (M)621,839.36651,874.44683,059.02
Equity Value (M)766,330.32801,210.83837,379.06
Shares Outstanding (M)2,586.502,586.502,586.50
Fair Value$296.28$309.77$323.75
Upside / Downside-59.66%-57.82%-55.92%

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