Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Meta Platforms Inc., current price multiples
| Meta Platforms Inc. | Alphabet Inc. | Comcast Corp. | Netflix Inc. | Trade Desk Inc. | Walt Disney Co. | Media & Entertainment | Communication Services | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $661.46 | ||||||||||
| No. shares of common stock outstanding | 2,529,555,464 | ||||||||||
| Growth rate (g) | 26.74% | ||||||||||
| Earnings per share (EPS) | $23.90 | ||||||||||
| Next year expected EPS | $30.29 | ||||||||||
| Operating profit per share | $32.92 | ||||||||||
| Sales per share | $79.45 | ||||||||||
| Book value per share (BVPS) | $85.88 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 27.68 | 29.57 | 5.64 | 31.61 | 33.27 | 15.52 | 32.41 | 29.51 | |||
| Price to next year expected earnings | 21.84 | 23.11 | 5.07 | 24.04 | 29.86 | 15.27 | 26.80 | 25.50 | |||
| Price-earnings-growth (PEG) | 1.03 | 1.06 | 0.50 | 1.00 | 2.92 | 9.43 | 1.55 | 1.88 | |||
| Price to operating profit (P/OP) | 20.09 | 30.29 | 5.46 | 26.04 | 30.61 | 14.80 | 27.86 | 23.64 | |||
| Price to sales (P/S) | 8.33 | 9.70 | 0.91 | 7.68 | 5.35 | 2.04 | 8.10 | 6.18 | |||
| Price to book value (P/BV) | 7.70 | 9.41 | 1.16 | 13.04 | 4.43 | 1.75 | 8.66 | 6.95 | |||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Meta Platforms Inc., historical price multiples
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The valuation ratios demonstrate a generally increasing trend from 2021 to 2023, followed by some moderation in 2024 and a slight shift in 2025. Across the observed period, the ratios indicate evolving investor sentiment and market perception of the company’s value relative to its earnings, operating performance, sales, and assets.
- Price to Earnings (P/E)
- The Price to Earnings ratio increased from 16.44 in 2021 to 30.97 in 2023, representing a significant expansion in valuation based on earnings. This growth slowed in 2024, with a decrease to 27.91, and then experienced a modest increase to 30.89 in 2025. The overall trend suggests increasing investor confidence in future earnings potential, though recent fluctuations indicate potential stabilization.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the Price to Operating Profit ratio exhibited growth from 13.84 in 2021 to 25.90 in 2023. The rate of increase slowed in 2024, with a value of 25.09, and then decreased to 22.43 in 2025. This pattern mirrors the P/E ratio, suggesting that changes in operating profitability are a key driver of valuation.
- Price to Sales (P/S)
- The Price to Sales ratio showed a decrease from 5.49 in 2021 to 4.20 in 2022, before increasing substantially to 8.98 in 2023. It peaked at 10.58 in 2024 and then decreased slightly to 9.29 in 2025. This indicates a growing premium placed on each dollar of revenue, peaking in 2024, and a subsequent slight correction. The increase suggests investors were willing to pay more for the company’s revenue stream.
- Price to Book Value (P/BV)
- The Price to Book Value ratio increased from 5.18 in 2021 to 7.91 in 2023, indicating a rising valuation relative to net asset value. The ratio continued to increase in 2024, reaching 9.53, before decreasing to 8.60 in 2025. This suggests that the market increasingly values the company’s intangible assets and future growth prospects compared to its historical cost of equity.
In summary, the observed ratios generally increased between 2021 and 2023, reflecting positive market sentiment. The period from 2024 to 2025 shows a moderation of these increases, suggesting a potential stabilization or re-evaluation of the company’s valuation multiples.
Price to Earnings (P/E)
Meta Platforms Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,529,555,464 | 2,533,659,265 | 2,549,405,106 | 2,592,639,548 | 2,721,941,960 | |
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | 60,458) | 62,360) | 39,098) | 23,200) | 39,370) | |
| Earnings per share (EPS)2 | 23.90 | 24.61 | 15.34 | 8.95 | 14.46 | |
| Share price1, 3 | 738.31 | 687.00 | 474.99 | 188.77 | 237.76 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 30.89 | 27.91 | 30.97 | 21.10 | 16.44 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Alphabet Inc. | 30.33 | 23.54 | 23.89 | 22.47 | 25.74 | |
| Comcast Corp. | 5.35 | 7.86 | 12.01 | 31.38 | 16.01 | |
| Netflix Inc. | 33.11 | 47.72 | 45.64 | 36.18 | 33.56 | |
| Trade Desk Inc. | — | 90.94 | 206.87 | 609.53 | 284.75 | |
| Walt Disney Co. | 15.49 | 39.74 | 73.44 | 54.90 | 137.89 | |
| P/E Ratio, Sector | ||||||
| Media & Entertainment | — | 25.28 | 26.54 | 24.66 | 24.24 | |
| P/E Ratio, Industry | ||||||
| Communication Services | — | 23.64 | 24.04 | 25.67 | 21.27 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 60,458,000,000 ÷ 2,529,555,464 = 23.90
3 Closing price as at the filing date of Meta Platforms Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 738.31 ÷ 23.90 = 30.89
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited considerable fluctuation over the five-year period. Initially, the P/E ratio decreased from 2021 to 2022, then increased significantly before stabilizing in later years. This movement correlates with changes in both share price and earnings per share.
- Share Price Trend
- The share price demonstrated a decline between 2021 and 2022, falling from US$237.76 to US$188.77. A substantial recovery occurred in 2023, with the price reaching US$474.99. Continued growth was observed through 2024 and 2025, reaching US$687.00 and US$738.31 respectively, although the rate of increase slowed in the final year.
- Earnings Per Share (EPS) Trend
- Earnings per share decreased from US$14.46 in 2021 to US$8.95 in 2022. A strong rebound was seen in 2023, with EPS rising to US$15.34. Further growth occurred in 2024, reaching US$24.61, but experienced a slight decrease in 2025 to US$23.90.
- P/E Ratio Analysis
- The P/E ratio began at 16.44 in 2021 and increased to 21.10 in 2022, reflecting the greater decline in share price relative to earnings. A significant increase to 30.97 was observed in 2023, driven by the substantial increase in share price and earnings. The ratio then decreased to 27.91 in 2024, indicating a more moderate increase in share price compared to earnings. Finally, the P/E ratio rose slightly to 30.89 in 2025, suggesting a continued premium placed on earnings, despite a minor decrease in EPS.
The observed fluctuations in the P/E ratio suggest a dynamic valuation influenced by both market sentiment and underlying earnings performance. The increasing trend in the latter years indicates growing investor confidence, while the slight decrease in EPS in 2025 warrants further investigation.
Price to Operating Profit (P/OP)
Meta Platforms Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,529,555,464 | 2,533,659,265 | 2,549,405,106 | 2,592,639,548 | 2,721,941,960 | |
| Selected Financial Data (US$) | ||||||
| Income from operations (in millions) | 83,276) | 69,380) | 46,751) | 28,944) | 46,753) | |
| Operating profit per share2 | 32.92 | 27.38 | 18.34 | 11.16 | 17.18 | |
| Share price1, 3 | 738.31 | 687.00 | 474.99 | 188.77 | 237.76 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 22.43 | 25.09 | 25.90 | 16.91 | 13.84 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Alphabet Inc. | 31.06 | 20.97 | 20.92 | 18.01 | 24.86 | |
| Comcast Corp. | 5.18 | 5.46 | 7.93 | 12.00 | 10.89 | |
| Netflix Inc. | 27.28 | 39.91 | 35.50 | 28.85 | 27.71 | |
| Trade Desk Inc. | — | 83.69 | 184.64 | 286.30 | 314.28 | |
| Walt Disney Co. | 14.76 | 23.75 | 33.90 | 26.43 | 91.54 | |
| P/OP Ratio, Sector | ||||||
| Media & Entertainment | — | 21.73 | 21.70 | 18.24 | 21.31 | |
| P/OP Ratio, Industry | ||||||
| Communication Services | — | 18.94 | 18.02 | 17.59 | 17.72 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 83,276,000,000 ÷ 2,529,555,464 = 32.92
3 Closing price as at the filing date of Meta Platforms Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 738.31 ÷ 32.92 = 22.43
5 Click competitor name to see calculations.
The price to operating profit ratio exhibited a fluctuating pattern over the five-year period. Initially, the ratio increased before declining towards the end of the observed timeframe. Share price and operating profit per share both demonstrated volatility, influencing the overall trend in the P/OP ratio.
- Overall Trend
- The P/OP ratio began at 13.84 in 2021, increased to 16.91 in 2022, then rose significantly to 25.90 in 2023. A slight decrease to 25.09 was noted in 2024, followed by a further decline to 22.43 in 2025. This suggests a period of increasing valuation relative to operating profit, followed by stabilization and a modest reduction.
- Share Price Influence
- The share price experienced a decrease from US$237.76 in 2021 to US$188.77 in 2022, which likely contributed to the initial increase in the P/OP ratio, as operating profit per share also decreased. However, a substantial increase in share price to US$474.99 in 2023, coupled with an increase in operating profit per share, drove the P/OP ratio higher. Continued increases in both share price and operating profit per share in 2024 and 2025, though at a diminishing rate for share price, resulted in a moderate decrease in the P/OP ratio in 2025.
- Operating Profit per Share Influence
- Operating profit per share decreased from US$17.18 in 2021 to US$11.16 in 2022, contributing to the rise in the P/OP ratio. The subsequent increase to US$18.34 in 2023, US$27.38 in 2024, and US$32.92 in 2025, while the share price also increased, moderated the P/OP ratio, leading to the observed decline from 2023 to 2025.
The interplay between share price and operating profit per share is evident in the P/OP ratio’s movement. The ratio’s decline in the latter years of the period suggests that while the share price continued to increase, the growth in operating profit per share was sufficient to partially offset this increase in terms of valuation.
Price to Sales (P/S)
Meta Platforms Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,529,555,464 | 2,533,659,265 | 2,549,405,106 | 2,592,639,548 | 2,721,941,960 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | 200,966) | 164,501) | 134,902) | 116,609) | 117,929) | |
| Sales per share2 | 79.45 | 64.93 | 52.92 | 44.98 | 43.33 | |
| Share price1, 3 | 738.31 | 687.00 | 474.99 | 188.77 | 237.76 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 9.29 | 10.58 | 8.98 | 4.20 | 5.49 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Alphabet Inc. | 9.95 | 6.73 | 5.74 | 4.76 | 7.60 | |
| Comcast Corp. | 0.87 | 1.03 | 1.52 | 1.39 | 1.95 | |
| Netflix Inc. | 8.05 | 10.66 | 7.32 | 5.14 | 5.78 | |
| Trade Desk Inc. | — | 14.62 | 19.02 | 20.62 | 32.79 | |
| Walt Disney Co. | 2.03 | 2.16 | 1.94 | 2.09 | 4.08 | |
| P/S Ratio, Sector | ||||||
| Media & Entertainment | — | 6.32 | 5.25 | 3.73 | 5.62 | |
| P/S Ratio, Industry | ||||||
| Communication Services | — | 4.95 | 4.00 | 2.93 | 3.98 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 200,966,000,000 ÷ 2,529,555,464 = 79.45
3 Closing price as at the filing date of Meta Platforms Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 738.31 ÷ 79.45 = 9.29
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio decreased before increasing substantially, then leveling off. This movement correlates with changes in both share price and sales per share.
- Price-to-Sales Ratio (P/S)
- The P/S ratio began at 5.49 in 2021 and decreased to 4.20 in 2022. This decline suggests a relative decrease in the valuation investors were willing to pay for each dollar of sales. A significant increase followed, with the ratio rising to 8.98 in 2023 and further to 10.58 in 2024. This indicates growing investor confidence or potentially overvaluation relative to sales. The ratio then experienced a modest decrease to 9.29 in 2025, suggesting a slight correction or stabilization.
- Share Price Trend
- The share price demonstrated a similar pattern to the P/S ratio. It decreased from US$237.76 in 2021 to US$188.77 in 2022, coinciding with the initial decline in the P/S ratio. A substantial increase occurred between 2022 and 2024, reaching US$687.00, which contributed to the rise in the P/S ratio. The share price continued to increase, albeit at a slower pace, reaching US$738.31 in 2025.
- Sales per Share Trend
- Sales per share consistently increased throughout the period, moving from US$43.33 in 2021 to US$79.45 in 2025. This consistent growth in sales per share partially explains the overall increase in the P/S ratio, as higher sales generally support a higher valuation. However, the magnitude of the P/S ratio increase suggests that investor expectations grew at a faster rate than sales.
The interplay between share price and sales per share demonstrates that changes in the P/S ratio are driven by both factors. The substantial increase in the ratio between 2022 and 2024 was fueled by a significant rise in share price, while the more moderate change in 2025 suggests a balancing effect between share price appreciation and continued sales growth.
Price to Book Value (P/BV)
Meta Platforms Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,529,555,464 | 2,533,659,265 | 2,549,405,106 | 2,592,639,548 | 2,721,941,960 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 217,243) | 182,637) | 153,168) | 125,713) | 124,879) | |
| Book value per share (BVPS)2 | 85.88 | 72.08 | 60.08 | 48.49 | 45.88 | |
| Share price1, 3 | 738.31 | 687.00 | 474.99 | 188.77 | 237.76 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 8.60 | 9.53 | 7.91 | 3.89 | 5.18 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Alphabet Inc. | 9.65 | 7.25 | 6.22 | 5.26 | 7.78 | |
| Comcast Corp. | 1.10 | 1.49 | 2.24 | 2.08 | 2.36 | |
| Netflix Inc. | 13.66 | 16.80 | 11.99 | 7.82 | 10.83 | |
| Trade Desk Inc. | — | 12.12 | 17.10 | 15.38 | 25.68 | |
| Walt Disney Co. | 1.75 | 1.96 | 1.74 | 1.82 | 3.11 | |
| P/BV Ratio, Sector | ||||||
| Media & Entertainment | — | 6.75 | 5.64 | 4.09 | 5.73 | |
| P/BV Ratio, Industry | ||||||
| Communication Services | — | 5.56 | 4.54 | 3.41 | 4.32 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 217,243,000,000 ÷ 2,529,555,464 = 85.88
3 Closing price as at the filing date of Meta Platforms Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 738.31 ÷ 85.88 = 8.60
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio exhibited significant fluctuations over the five-year period. Initially, the ratio decreased before increasing substantially, then stabilizing. This movement correlates with changes in both share price and book value per share.
- Share Price Trend
- The share price demonstrated a decline from December 31, 2021, to December 31, 2022, followed by a considerable increase through December 31, 2024. A more moderate increase was observed between December 31, 2024, and December 31, 2025. This suggests periods of investor pessimism followed by increasing confidence, and then a slowing of that confidence.
- Book Value Per Share Trend
- Book value per share consistently increased throughout the period. The rate of increase appeared to accelerate from 2022 to 2024, before moderating in the final year. This indicates a strengthening of the company’s net asset value over time.
- P/BV Ratio Analysis
- The P/BV ratio decreased from 5.18 in 2021 to 3.89 in 2022, primarily driven by the decline in share price. A substantial increase to 7.91 was then recorded in 2023, reflecting the significant rise in share price coupled with a moderate increase in book value per share. The ratio continued to climb to 9.53 in 2024, driven by continued share price appreciation and book value growth. Finally, the ratio decreased slightly to 8.60 in 2025, as the share price increase slowed while book value per share continued to grow. The overall trend suggests that the market valuation relative to book value initially contracted, then expanded considerably, and finally stabilized at a high level.
The observed patterns suggest a dynamic relationship between market perception and underlying asset value. The increasing book value per share provides a foundation for valuation, while the share price reflects investor sentiment and expectations regarding future performance.