Is Meta Platforms, Inc. overvalued or undervalued?

As of 30 July 2025, the valuation grade for Meta Platforms, Inc. moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 26, a PEG ratio of 0.74, and an EV to EBITDA ratio of 19.20. In comparison to peers, Alphabet, Inc. has a higher P/E of 27.18 and a PEG of 1.38, while Spotify Technology SA is considered very expensive with a P/E of 92.22.
Meta's stock has significantly outperformed the S&P 500, with a year-to-date return of 33.26% compared to the index's 12.22%, and an impressive three-year return of 433.36% against 70.41% for the S&P 500. This strong performance further reinforces the attractiveness of the stock in the current market environment.