Is Meta Platforms, Inc. overvalued or undervalued?

As of 2 May 2025, the valuation grade for Meta Platforms, Inc. has moved from attractive to fair. The company is currently fairly valued, with a P/E ratio of 26, which is higher than Alphabet, Inc.'s P/E of 21.13 but lower than Spotify Technology SA's significantly inflated P/E of 92.85. Additionally, Meta's EV to EBITDA stands at 19.20, compared to Alphabet's more favorable ratio of 15.44, indicating that while Meta is not overvalued, it is also not the most attractive investment in its peer group.
Key ratios for Meta include a PEG ratio of 0.74, suggesting potential growth at a reasonable price, and a strong ROCE of 50.34%, reflecting efficient capital use. While Meta's recent stock performance has outpaced the S&P 500 with a YTD return of 19.30% compared to the S&P's 2.44%, the current valuation suggests that investors should approach with caution as the stock is now fairly valued relative to its peers.