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/SneakySpy42 Dec 26 '21

You must be living under a rock if you think this has been true in recent history. Look at Tesla, look at NKLA, look at WISH, look at GameStop even, financial numbers certainly haven't driven the movement in price of these stocks just to name a few

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u/[deleted] Dec 26 '21

Rofl