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$384.37 - $757.94$531.32
Multi-Stage$284.73 - $311.07$297.66
Blended Fair Value$414.49
Current Price$734.38
Upside-43.56%
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 Rate10.47%10.47%10.47%
Growth Rate5.50%6.50%7.50%
Fair Value$384.37$531.32$757.94
Upside / Downside-47.66%-27.65%3.21%

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 Rate10.47%10.47%10.47%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)14,076.8714,210.3014,343.73
Year 2 PV (M)22,093.6022,514.4222,939.21
Year 3 PV (M)29,360.7030,203.5431,062.36
Year 4 PV (M)35,929.3837,311.1238,732.34
Year 5 PV (M)41,847.7643,869.0245,967.64
PV of Terminal Value (M)593,148.36621,797.65651,543.41
Equity Value (M)736,456.66769,906.04804,588.68
Shares Outstanding (M)2,586.502,586.502,586.50
Fair Value$284.73$297.66$311.07
Upside / Downside-61.23%-59.47%-57.64%

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