DCF Tool

META

Meta Platforms Inc – Data Processing, Hosting, and Related Services
Facebook's mission is to give people the power to build community and bring the world closer together. The company builds useful and engaging products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices. Facebook also helps people discover and learn about what is going on in the world around them, enable people to share their opinions, ideas, photos and videos, and other activities with audiences ranging from their closest family members and friends to the public at large, and stay connected everywhere by accessing its products, including: Facebook enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers. There are a number of different ways to engage with people on Facebook and build community, including Facebook News Feed, Stories, Groups, Shops, Marketplace, News, and Watch. Instagram brings people closer to the people and things they love. It is a place where people can express themselves through photos, videos, and private messaging, and connect with and shop from their favorite businesses and creators. They can do this through Instagram Feed, Stories, Reels, IGTV, Live, Shops, and messaging. Messenger is a simple yet powerful messaging application for people to connect with friends, family, groups, and businesses across platforms and devices through chat, video, and Rooms. WhatsApp is a simple, reliable, and secure messaging application that is used by people and businesses around the world to communicate and transact in a private way. Facebook Reality Labs' augmented and virtual reality products help people feel connected, anytime, anywhere. Oculus Quest lets people defy distance with cutting-edge virtual reality (VR) hardware, software, and content, while Portal helps friends and families stay connected and share the moments that matter in meaningful ways. Facebook generates substantially all of its revenue from selling advertising placements to marketers. Its ads enable marketers to reach people based on a variety of factors including age, gender, location, interests, and behaviors. Marketers purchase ads that can appear in multiple places including on Facebook, Instagram, Messenger, and third-party applications and websites. Founded in 2004 by Mark Zuckerberg, the company is headquartered in Menlo Park, CA.
Analysis Results
Intrinsic Value $286.93
Latest Price $179.47
Relative Value 37% undervalued
Thoughts on this result? Let us know.
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 31.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 13.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 31.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 36.4 32.0
2023 47.9 37.0
2024 63.1 42.9
2025 83.2 49.7
2026 110 57.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 951 billion. This corresponds to a present value of 439 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 219 billion. Adding in the terminal value gives a total present value of 658 billion.

There are presently 2.29 billion outstanding shares, so the intrinsic value per share is 286.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 66,666,000,000
Current Cash 47,998,000,000
Current Liabilities 21,135,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,467,000,000
Change in NCWC -1,202,000,000
EBIT 46,753,000,000
Tax Provision 7,914,000,000
Depreciation and Amortization 7,967,000,000
Capital Expenditure -18,567,000,000
Unlevered Free Cash Flow 27,125,874,333
Current Assets 75,670,000,000
Current Cash 61,954,000,000
Current Liabilities 14,981,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,265,000,000
Change in NCWC 2,141,000,000
EBIT 32,671,000,000
Tax Provision 4,034,000,000
Depreciation and Amortization 6,862,000,000
Capital Expenditure -15,115,000,000
Unlevered Free Cash Flow 22,586,883,845
Current Assets 66,225,000,000
Current Cash 54,855,000,000
Current Liabilities 15,053,000,000
Current Debt 277,000,000
Non-Cash Working Capital (NCWC) -3,406,000,000
Change in NCWC -6,255,000,000
EBIT 23,986,000,000
Tax Provision 6,327,000,000
Depreciation and Amortization 5,741,000,000
Capital Expenditure -15,102,000,000
Unlevered Free Cash Flow 2,253,628,002
Current Assets 50,480,000,000
Current Cash 41,114,000,000
Current Liabilities 7,017,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) 2,849,000,000
Change in NCWC -243,000,000
EBIT 24,913,000,000
Tax Provision 3,249,000,000
Depreciation and Amortization 4,315,000,000
Capital Expenditure -13,915,000,000
Unlevered Free Cash Flow 11,878,393,320
Current Assets 48,563,000,000
Current Cash 41,711,000,000
Current Liabilities 3,760,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,092,000,000
Change in NCWC 1,015,000,000
EBIT 20,203,000,000
Tax Provision 4,660,000,000
Depreciation and Amortization 3,025,000,000
Capital Expenditure -6,733,000,000
Unlevered Free Cash Flow 12,938,475,284
Current Assets 34,401,000,000
Current Cash 29,449,000,000
Current Liabilities 2,875,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,077,000,000
Change in NCWC 777,000,000
EBIT 12,427,000,000
Tax Provision 2,301,000,000
Depreciation and Amortization 2,342,000,000
Capital Expenditure -4,491,000,000
Unlevered Free Cash Flow 8,770,727,192
Current Assets 21,652,000,000
Current Cash 18,434,000,000
Current Liabilities 1,925,000,000
Current Debt 7,000,000
Non-Cash Working Capital (NCWC) 1,300,000,000
Change in NCWC 139,000,000
EBIT 6,225,000,000
Tax Provision 2,506,000,000
Depreciation and Amortization 1,945,000,000
Capital Expenditure -2,523,000,000
Unlevered Free Cash Flow 3,267,457,862
Current Assets 13,670,000,000
Current Cash 11,199,000,000
Current Liabilities 1,424,000,000
Current Debt 114,000,000
Non-Cash Working Capital (NCWC) 1,161,000,000
Change in NCWC 401,000,000
EBIT 4,994,000,000
Tax Provision 1,970,000,000
Depreciation and Amortization 1,243,000,000
Capital Expenditure -1,831,000,000
Unlevered Free Cash Flow 2,803,297,352
Current Assets 13,070,000,000
Current Cash 11,449,000,000
Current Liabilities 1,100,000,000
Current Debt 239,000,000
Non-Cash Working Capital (NCWC) 760,000,000
Change in NCWC -194,000,000
EBIT 2,804,000,000
Tax Provision 1,254,000,000
Depreciation and Amortization 1,011,000,000
Capital Expenditure -1,362,000,000
Unlevered Free Cash Flow 982,233,115

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