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ZYBERNO
Stock Report
Updated Oct 26, 2026

Meta Platforms, Inc. (META)

Technology • NASDAQ

$694.25
Meta Platforms Inc. is an American technology conglomerate headquartered in Menlo Park, California, that owns and operates Facebook, Instagram, WhatsApp, Messenger, and Threads. The company connects approximately 3.3 billion daily active people across its Family of Apps and generates revenue primarily through targeted advertising. Meta is investing heavily in artificial intelligence (including Llama large language models) and the metaverse through its Reality Labs division, which develops Quest VR headsets and Ray-Ban smart glasses.

Professional Investment Analysis

ZYBERNO SCORE →
Is it a great business? Is it getting better?
87.0/100
GREAT BUSINESS
Meta Platforms, Inc. (META) scores 87/100 — exceptional capital returns and consistent cash generation across all measurement periods.
📊 How is the Zyberno Score calculated? +
VALUATION SIGNAL
MARGIN OF SAFETY
Is this stock cheap or expensive relative to what the business has historically generated for owners?
+47.4%
Undervalued
Is the market underestimating or overestimating what this business is capable of going forward?
+1.7%
Fairly Priced
↑ UNDER
+50%
Brina Gap
-50%
↓ OVER
← OVERVALUED
-100%
Margin of Safety
UNDERVALUED →
+100%
UNDERESTIMATED
GROWTH
DOUBLE
DISCOUNT
EXPENSIVE
HYPE
VALUE
TRAP
0,0
MoS +47.4%  ·  Gap +1.7%

Two independent signals. One tells you if the stock is cheap relative to what the business has historically generated for owners — the Margin of Safety. The other tells you if the market is underestimating what the business is capable of going forward — the Brina Gap.

They are calculated from completely different data sources and answer completely different questions. The Margin of Safety reads the past. The Brina Gap reads the present economics and compares them against what the current stock price is assuming about the future.

When both point in the same direction simultaneously — DOUBLE DISCOUNT — the probability of genuine mispricing is high. The market is wrong on two independent dimensions at once, which is rare and significant.

The most dangerous scenario is not an overvalued stock — those are easy to avoid. It is a VALUE TRAP: a stock that appears cheap historically but where the market is already pricing in stronger growth than the business fundamentals support. Without the Brina Gap signal this looks identical to a genuine opportunity. The matrix separates them instantly.

The Brina Gap is the more powerful of the two signals. Most investors and analytical tools focus on valuation alone — whether a stock is cheap relative to earnings. Far fewer systematically compare what the business economics structurally support against what the stock price is actually assuming. That gap between fundamental growth potential and market expectations is where the most reliable mispricings live, and where this matrix earns its value.

Use this as your first filter. A stock in DOUBLE DISCOUNT territory is worth investigating. Everything else requires either more caution or a specific reason to act.

HISTORICAL BARGAIN
Meta Platforms, Inc. (META) trades below proven earnings power (Margin of Safety +47.4%) but the Brina Gap (+1.7%) shows the market fairly prices forward economics. Limited forward catalyst identified.
⚠ Significant divergence between Owner Earnings and Free Cash Flow (2.78×). Intrinsic Value and Brina Gap are likely overstated — acquisition-related D&A is inflating Owner Earnings. Verify earnings quality before acting.
🎯 Expected Annual Return →
36.4%
Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)
17.7%
Brina Gap convergence — your return if the market corrects the growth mispricing the Gap measures
20.9%
Yield + growth — what the business alone earns you, even if the market never re-rates
💰 How is Margin of Safety calculated? +
📈 How is Brina Gap calculated? +

Critical Financial Health Indicators

Return on Equity (Profitability):EXCELLENT (30.3%)
Debt-to-Equity (Solvency Risk):GOOD (0.42x)
Operating Margin (Operational Efficiency):EXCELLENT (32.9%)
Return on Capital (Capital Efficiency):GOOD (17.5%)
📊 Valuation Trilogy
Three interconnected metrics for complete valuation analysis
💎
Intrinsic Value
DCF Fair Value
$1,318.93
🛡️
Margin of Safety
Valuation Gap
47.4%
🎯
Expected Return
Projected Annual
36.4%
Click any metric for full methodology and detailed analysis
Zyberno's Verdict

According to Zyberno, Meta Platforms, Inc. (META) shows a Value Trap signal — GREAT BUSINESS (87/100) with an apparent Margin of Safety of +47.4%, but a Brina Gap of +1.7% reveals the current price still assumes faster growth than the business can deliver. Sub-scores: profitability 36/39, cash-flow quality 22/24, stability & safety 21/23, growth 8/14.

According to Zyberno's DCF model, Meta Platforms, Inc. (META) trades at $694.25 against an estimated intrinsic value per share of $1,318.93 — a +47.4% Margin of Safety based on Owner Earnings of $108.17B TTM, projected at 25.3% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of +1.7% strengthens the case: based on the company's ROIC (17.5%) and reinvestment rate (84.8%), the business can fundamentally grow at 14.8% — but the current enterprise value implies the market expects 13.1%. This places META in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 36.4% annually.

Over the trailing twelve months, META generated $108.17B in Owner Earnings. Capital was deployed as follows: $5.39B paid as dividends, $104.44B invested in capital expenditures. Reinvestment rate: 84.8%. Owner Earnings have grown at 25.3% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY
A. Market Valuation

Market Price & Capitalization (2)

Current Price:694.25
Market Cap:$1.77T

Valuation Multiples (4)

P/E Ratio:
23.68x
📊 Click to view full META P/E analysis →
P/B Ratio:6.50x
P/S Ratio:7.33x
Peg Ratio:0.79x

Enterprise Metrics (3)

Enterprise Value:$1.84T
Ev Ebitda Ratio:17.83x
Pfcf Ratio:61.84x

Price Action & Momentum (3)

12-1 Momentum:
-0.9% (49th pctile)
📈 Click to view full META Momentum analysis →
Momentum Percentile:49 / 100
% of 52-Week High:89.0%
B. Profitability Assessment

Return Metrics (7)

ROE:
30.3%
📊 Click to view full META ROE analysis →
ROA:17.8%
Roic:
17.5%
📊 Click to view full META ROIC analysis →
Reinvestment Rate:84.8%
Fundamental Growth Rate (g):14.8%
Market-Implied Growth Rate:13.1%
Brina Gap:
1.7%
☷ Click to view full META Brina Gap analysis →
UNRELIABLE

Margin Analysis (3)

Operating Margin Ttm:32.9%
Net Margin Ttm:31.1%
Ebitda Margin:42.8%

TTM Performance (3)

Gross Margin Ttm:81.0%
Operating Margin Ttm:32.9%
Net Margin Ttm:31.1%

Yield Metrics (3)

Earnings Yield:$4.22
Owner Earnings Yield:$6.11
Dividend Yield:0.3%
C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):
+0.82
📊 Click to view full META Earnings Surprise analysis →
EPS Surprise vs Expected:95.8%
Latest Earnings Filed:2026-10-22

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):22.9%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):23.3%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-6.3%
Operating Cash Flow Growth Rate (Linear):26.7%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):28.4%
D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.90x
Quick Ratio:1.90x
Cash Ratio:0.18x

Leverage Analysis (3)

Debt To Equity Ttm:0.42x
Debt-to-Equity Ratio:0.42x
Debt To Ebitda:0.81x

Coverage Ratios (2)

Interest Coverage Ratio:40.17x
Times Interest Earned:40.17

Capital Structure (4)

Working Capital:56,889,000,000.00
Cash And Cash Equivalents:11,222,000,000.00
Long Term Debt:$80.92B
Net Debt:$72.45B
DIVISION II: FINANCIAL STATEMENTS ANALYSIS
A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $241.61B
Linear Growth: 22.9%
📊 Click to view full META Revenue analysis & methodology →
Cost Of Revenue Ttm:$45.82B

Profitability Breakdown (2)

Gross profit TTM: $195.78B
Linear Growth: 24.1%
📊 Click to view full META Gross Profit analysis & methodology →
Operating income TTM: $79.38B
Linear Growth: 28.4%
📊 Click to view full META Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $75.25B
Linear Growth: 23.3%
📊 Click to view full META Net Income analysis & methodology →
Income Before Tax:$78.86B
Ebitda Ttm:103,453,000,000.00

Operating Expenses (5)

Operating Expenses:162,227,000,000.00
R And D Expense:76,545,000,000.00
Sga Expense:26,777,000,000.00
Income Tax Expense:$3.61B
Interest Expense:2,073,000,000.00

Expense Ratios (3)

R And D To Revenue Percentage:31.7%
Sga To Revenue Percentage:11.1%
Ebitda Margin:42.8%
B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$478.84B
Current Assets:$119.90B
Ppe Net:0.00
Goodwill:23,421,000,000.00
Intangible Assets:$3.18B

Liability Structure (4)

Total Liabilities:206,450,000,000.00
Current Liabilities:63,011,000,000.00
Long Term Debt:$80.92B
Short Term Debt:$2.75B

Equity & Capital (3)

Equity:$272.39B
Retained Earnings:$165.34B
Common Stock:108,244,000,000.00

Working Capital Items (3)

Accounts Receivable:22,716,000,000.00
Inventory:0.00
Accounts Payable:19,097,000,000.00

Special Items (2)

Contract Liabilities:1,190,000,000.00
Stock Based Compensation:7,363,000,000.00
C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $133.09B
Linear Growth: 26.7%
Free cash flow TTM: $28.65B
Linear Growth: -6.3%
📊 Click to view full META Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$30.98B
Capital Expenditures Ttm:104,438,000,000.00

Financing Activities (3)

Financing Cash Flow:-$6.73B
Dividends Paid Ttm:5,388,000,000.00
Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00
Long Term Debt Issuance:$0.00
Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:24,073,000,000.00
DIVISION III: OPERATIONAL METRICS
A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):29.69
Eps diluted TTM: $29.32
Linear Growth: 24.2%
📊 Click to view full META EPS analysis & methodology →
Earnings Per Share Ttm:$29.49

Revenue & Cash Per Share (3)

Sales Per Share Ttm:94.67
Operating Cash Flow Per Share:$45.38
Fcf Per Share Ttm:11.23

Book Value & Capital (2)

Book Value Per Share:$106.73
Cash Per Share:4.40

Dividend Policy (1)

Dividend Payout Ratio:11.02x
B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.57x
Working Capital Turnover Ttm:4.25x

Receivables Management (2)

Receivables Turnover Ttm:10.64x
Days Sales Outstanding Ttm:34.32

Inventory Management (2)

Inventory Turnover Ttm:-999.00x
Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:152.12
Cash Conversion Cycle:-1,116.80
C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00
Quality Score:100.00

Market Metrics (2)

Beta:0.00x
Volatility Category:Unknown
DIVISION IV: INVESTMENT ANALYSIS
A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $108.17B
Linear Growth: 25.3%
📊 Click to view full META Owner Earnings analysis & methodology →
Owner Earnings Per Share:$42.39
Owner Earnings Yield:$6.11

Growth Assessment (1)

Owner Earnings Growth Rate:$25.35

Damodaran Growth Analysis (4)

Reinvestment Rate:84.8%
Fundamental Growth Rate (g):14.8%
Market-Implied Growth Rate:13.1%
Brina Gap:
1.7%
☷ Click to view full META Brina Gap analysis →
UNRELIABLE

Intrinsic Value Models (1)

Intrinsic Value:
$3.37T
📊 Click to view full META DCF valuation →

Margin of Safety (1)

Margin Of Safety:
47.4%
📊 Click to view full META valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:
36.4%
📊 Click to view full META expected return analysis →
Forward Expected Return (Yield + Growth):
20.9%
📊 Click to view full META expected return analysis →

Investment Assessment (1)

Buffett Assessment:Excellent margin of safety
B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):22.9%
Net Income Growth Rate (Linear):23.3%
Operating Income Growth Rate (Linear):28.4%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-6.3%
Operating Cash Flow Growth Rate (Linear):26.7%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):24.1%
Book Value Growth Rate (Linear):21.1%
Owner Earnings Growth Rate:$25.35
C. Company Profile & Context

Corporate Information (6)

Symbol:META
Company Name:Meta Platforms, Inc.
Sector:Technology
Industry:Software Development
Exchange:NASDAQ
Country:United States

Market Classification (3)

Market Cap Category:Mega
Price Category:Premium
Volume Category:Very Low

Share Structure (3)

Shares Outstanding:2.55B
Shares Outstanding Basic:2.55B
Shares Outstanding Diluted:2.57B

Data Processing Info (3)

Processing Version:v3.0
Last Updated:2026-10-26 04:04:27 UTC
Data Timestamp:2026-10-26T04:04:27.491110
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