Financial statement analysis and common stock valuation

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of Meta Platforms Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Analysis of Liquidity Ratios

Measures the adequacy of Meta Platforms Inc. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Analysis of Geographic Areas

Meta Platforms Inc. operates in 2 regions: United States and Rest of the world.

• Area Asset Turnover
• Revenue
• Long-lived assets

Analysis of Profitability Ratios

Measures the income of Meta Platforms Inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• FCFE Growth Rate (g)

Cash Flow Statement

The cash flow statement provides information about Meta Platforms Inc. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Meta Platforms Inc. balance sheet.

Income Statement

The income statement (statement of earnings) reports on the performance of Meta Platforms Inc., the result of its operating activities.

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Meta Platforms Inc..

Analysis of Long-term (Investment) Activity Ratios

Measures how efficiently Meta Platforms Inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
• Total Asset Turnover
• Equity Turnover

Analysis of Reportable Segments

Meta Platforms Inc. operates in 2 segments: Family of Apps (FoA) and Reality Labs (RL).

• Segment Profit Margin
• Revenue
• Income (loss) from operations