Is it time to consider buying Meta Platforms, Inc. (NASDAQ: META)?

Let’s talk about the popular Meta Platforms, Inc. (NASDAQ: META). The company’s shares led the NASDAQGS’s gains with a relatively large price rise over the past two weeks. Since many analysts cover large-cap stocks, we can expect any price-sensitive announcements to have already been factored into the stock price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at the outlook and value of Meta Platforms based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Meta platforms

What is the value of meta-platforms?

Good news, investors! Meta platforms are still a good deal right now. My valuation model shows that the intrinsic value of the stock is $332.12, but it is currently trading at US$239 on the stock market, meaning there is still a buying opportunity now. What’s more interesting is that Meta Platforms’ stock price is quite volatile, which gives us more chances to buy since the stock price could fall (or rise) in the future . This is based on its high beta, which is a good indicator of how the stock is doing relative to the rest of the market.

What kind of growth will meta-platforms generate?

Investors looking for growth in their portfolio may want to consider a company’s prospects before buying its shares. Although value investors argue that it’s the intrinsic value relative to price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. With profits expected to grow by 79% over the next two years, the future looks bright for meta-platforms. It looks like higher cash flow is on the cards for the stock, which should translate into a higher share valuation.

What this means for you

Are you a shareholder? Given that META is currently undervalued, now may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it appears that this growth has not yet been fully factored into the stock price. However, there are other factors to consider as well, such as the capital structure, that could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on META for a while, now might be a good time to invest in the stock. Its bright future prospects aren’t fully reflected in the current share price yet, which means it’s not too late to buy META. But before you make an investment decision, consider other factors like the strength of its balance sheet to make an informed purchase.

If you want to learn more about Meta platforms, you should also look at the risks they currently face. Concrete example: we spotted 2 Warning Signs for Metaplatforms you should be aware of.

If you’re no longer interested in meta-platforms, you can use our free platform to view our list of 50+ other stocks with high growth potential.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to constitute financial advice. It is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. Our goal is to bring you targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any stocks mentioned.

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