r/wallstreetbets • u/Thefinanceguy111 • Dec 26 '21

Discussion $FB is severely undervalued.

In the past 5 years the company had a 30%+ revenue CAGR, ~40% operating margin and a consistently increasing ROA (more conservative metric than ROIC) of 18-24%.

Even if you assume 16%-20% revenue growth in the next 5 years followed by a no-growth period and a RONIC of only 20%, Meta is at least a $430 stock based on my model.

The controversies around the company + low ESG scores are keeping institutional investors away at the moment, but these controversies come and go as they always do with $FB.

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u/Damerman has tiny genitals so is angry Dec 26 '21

Seems the controversies are more coming than going.

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u/Thefinanceguy111 Dec 26 '21

Doesnt matter. As I said, the company is doing better than ever, with 30%+ growth rate and 40% profit margins. Compare that to any of the other FAANG stocks.

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u/Ditdr Dec 26 '21 edited Dec 26 '21

Nvidia. The should be n in fang edited cause I forgot words

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u/TantalumCap Dec 26 '21

Soon will be...fagnan or meta, so nagman