META Return on Equity (ROE) Analysis
Higher than 50% of Communication Services sector peers
Updated 681h ago·SEC filings & market data
Key Takeaway
Meta Platforms’ current Return on Equity (ROE) of 32.9% means that for every dollar of shareholders’ equity, the company generated $0.329 in net profit over the trailing twelve months.
Sector Performance
50th percentileMETA
32.9%
Sector Median
32.9%
Sector Avg
25.6%
Prior Period
27.8%(Jun 2026)
Deep Analysis
Meta Platforms’ current Return on Equity (ROE) of 32.9% means that for every dollar of shareholders’ equity, the company generated $0.329 in net profit over the trailing twelve months.
This is more than double the Communication Services sector median of 14.7%, placing META in the 73rd percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter increase of +18.3% shows that profitability relative to equity improved notably in the most recent period. A high ROE combined with a rising trend suggests the company is using its equity efficiently to generate earnings, which can reduce investment risk relative to weaker peers. However, the metric alone does not dictate the overall investment case. This strong ROE partially supports the NEUTRAL verdict by confirming META’s profitability strength, but it does not contradict the neutral stance because other factors—such as valuation or growth uncertainties—keep the rating balanced.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about META?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
How does META's Return on Equity (ROE) compare to its sector?
META's Return on Equity (ROE) of 32.9% compares to a Communication Services sector median of 32.9%, placing it in the 50th percentile.
Who are META's closest peers by Return on Equity (ROE)?
The closest Communication Services peers by Return on Equity (ROE) include: GOOGL (48.7%), NFLX (49.5%), VOD (0.1%), TWTR (-3.0%).
Learn More About Return on Equity (ROE)
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
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META
32.9%
Sector Median
32.9%
Sector Avg
25.6%
How META's Return on Equity (ROE) compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.