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Research on the Investment Value of META Based on Financial Analysis, Risk and Return Analysis, Valuation Method
- 1 Campion School, Agias loulianis 2, Athens, Greece
* Author to whom correspondence should be addressed.
Abstract
There are arguments about whether Meta is undervalued because of decreasing user engagement on social media platforms like Facebook and huge investment in the metaverse that hasn't produced tangible outcomes. This research uses the relative valuation method to evaluate the stock price of Meta. It employs financial statement analysis, risk and return metrics, and relative valuation techniques. Gross margin, operating margin, and debt-equity ratio are used to evaluate efficiency in operations and financial stability. Additionally, annual return, volatility, Sharpe ratio, and beta value are used to determine risk and return. Those figures provide information about stock performance stability and investor returns. By comparing Meta’s share price against industry peers, it reflects that Meta is undervalued based on its EV/Sales, EV/EBITDA, and P/E ratios, which suggest that Meta's stock is an attractive investment opportunity, thus provides a perspective for whoever is interested in investing in Meta’s stock.
Keywords
stock valuation, financial analysis, relative valuation method
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Cite this article
Wang,S. (2025). Research on the Investment Value of META Based on Financial Analysis, Risk and Return Analysis, Valuation Method. Advances in Economics, Management and Political Sciences,152,188-197.
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Volume title: Proceedings of the 3rd International Conference on Financial Technology and Business Analysis
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