Meta Platforms Stock Market Value
| META Stock | USD 494.17 5.59 1.12% |
| Symbol | Meta |
Meta Platforms Price To Book Ratio
Is Meta Platforms' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Meta Platforms. If investors know Meta will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Meta Platforms listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 2.002 | Earnings Share 14.86 | Revenue Per Share 52.409 | Quarterly Revenue Growth 0.247 | Return On Assets 0.1511 |
The market value of Meta Platforms is measured differently than its book value, which is the value of Meta that is recorded on the company's balance sheet. Investors also form their own opinion of Meta Platforms' value that differs from its market value or its book value, called intrinsic value, which is Meta Platforms' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Meta Platforms' market value can be influenced by many factors that don't directly affect Meta Platforms' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Meta Platforms' value and its price as these two are different measures arrived at by different means. Investors typically determine if Meta Platforms is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Meta Platforms' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Meta Platforms 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Meta Platforms' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Meta Platforms.
| 04/28/2022 |
| 04/17/2024 |
If you would invest 0.00 in Meta Platforms on April 28, 2022 and sell it all today you would earn a total of 0.00 from holding Meta Platforms or generate 0.0% return on investment in Meta Platforms over 720 days. Meta Platforms is related to or competes with Twilio, and Tencent Holdings. Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile de... More
Meta Platforms Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Meta Platforms' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Meta Platforms upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.62 | |||
| Information Ratio | 0.1466 | |||
| Maximum Drawdown | 24.74 | |||
| Value At Risk | (2.28) | |||
| Potential Upside | 3.27 |
Meta Platforms Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Meta Platforms' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Meta Platforms' standard deviation. In reality, there are many statistical measures that can use Meta Platforms historical prices to predict the future Meta Platforms' volatility.| Risk Adjusted Performance | 0.1124 | |||
| Jensen Alpha | 0.422 | |||
| Total Risk Alpha | 0.2606 | |||
| Sortino Ratio | 0.2734 | |||
| Treynor Ratio | 0.3425 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Meta Platforms' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Meta Platforms Backtested Returns
Meta Platforms appears to be very steady, given 3 months investment horizon. Meta Platforms has Sharpe Ratio of 0.16, which conveys that the firm had a 0.16% return per unit of risk over the last 3 months. By analyzing Meta Platforms' technical indicators, you can evaluate if the expected return of 0.5% is justified by implied risk. Please exercise Meta Platforms' Downside Deviation of 1.62, mean deviation of 1.71, and Risk Adjusted Performance of 0.1124 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Meta Platforms holds a performance score of 12. The company secures a Beta (Market Risk) of 1.43, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Meta Platforms will likely underperform. Please check Meta Platforms' skewness, day typical price, and the relationship between the downside variance and daily balance of power , to make a quick decision on whether Meta Platforms' current price movements will revert.
Auto-correlation | 0.31 |
Below average predictability
Meta Platforms has below average predictability. Overlapping area represents the amount of predictability between Meta Platforms time series from 28th of April 2022 to 23rd of April 2023 and 23rd of April 2023 to 17th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Meta Platforms price movement. The serial correlation of 0.31 indicates that nearly 31.0% of current Meta Platforms price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.31 | |
| Spearman Rank Test | 0.03 | |
| Residual Average | 0.0 | |
| Price Variance | 7010.18 |
Meta Platforms lagged returns against current returns
Autocorrelation, which is Meta Platforms stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Meta Platforms' stock expected returns. We can calculate the autocorrelation of Meta Platforms returns to help us make a trade decision. For example, suppose you find that Meta Platforms has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Meta Platforms regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Meta Platforms stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Meta Platforms stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Meta Platforms stock over time.
Current vs Lagged Prices |
| Timeline |
Meta Platforms Lagged Returns
When evaluating Meta Platforms' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Meta Platforms stock have on its future price. Meta Platforms autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Meta Platforms autocorrelation shows the relationship between Meta Platforms stock current value and its past values and can show if there is a momentum factor associated with investing in Meta Platforms.
Regressed Prices |
| Timeline |
Meta Platforms Investors Sentiment
The influence of Meta Platforms' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Meta. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Meta Platforms' public news can be used to forecast risks associated with an investment in Meta. The trend in average sentiment can be used to explain how an investor holding Meta can time the market purely based on public headlines and social activities around Meta Platforms. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Meta Platforms' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Meta Platforms' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Meta Platforms' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Meta Platforms.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Meta Platforms in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Meta Platforms' short interest history, or implied volatility extrapolated from Meta Platforms options trading.
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Try AI Portfolio ArchitectCheck out Meta Platforms Correlation, Meta Platforms Volatility and Meta Platforms Alpha and Beta module to complement your research on Meta Platforms. For information on how to trade Meta Stock refer to our How to Trade Meta Stock guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for Meta Stock analysis
When running Meta Platforms' price analysis, check to measure Meta Platforms' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Meta Platforms is operating at the current time. Most of Meta Platforms' value examination focuses on studying past and present price action to predict the probability of Meta Platforms' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Meta Platforms' price. Additionally, you may evaluate how the addition of Meta Platforms to your portfolios can decrease your overall portfolio volatility.
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Meta Platforms technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.