METANEUTRAL

META P/E Ratio Analysis

21.8x

Higher than 50% of Communication Services sector peers

Updated 681h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 21.8x means investors pay $21.80 for every $1 of the company's trailing earnings.

Sector Performance

50th percentile

Deep Analysis

The P/E ratio of 21.8x means investors pay $21.80 for every $1 of the company's trailing earnings.

That is below the Communication Services sector median of 24.9x, placing Meta at the 0th percentile among sector peers — cheaper than virtually all of them. The metric has been stable over the last eight quarters, with a quarter-over-quarter decline of 5.8% from 23.1x to 21.8x, while the year-over-year change is not available. A stable trend combined with a below-median level and a recent decline suggests valuation risk is contained, creating room for upside if earnings hold or grow. This supports the overall BULLISH verdict because the lower multiple offers a margin of safety relative to peers, without signs of a speculative run-up. The stable trajectory also lowers the chance of a sharp valuation contraction.

Frequently Asked Questions

What does the P/E Ratio tell investors about META?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does META's P/E Ratio compare to its sector?

META's P/E Ratio of 21.8x compares to a Communication Services sector median of 21.8x, placing it in the 50th percentile.

Who are META's closest peers by P/E Ratio?

The closest Communication Services peers by P/E Ratio include: NFLX (23.5x), GOOGL (16.9x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

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Closest Sector Peers