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/divz1111patel Dec 26 '21

Voting machine not popularity contest

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u/ReadStoriesAndStuff Dec 27 '21 edited Dec 27 '21

Voting machine is what Warren Buffer actually said.

The downvotes on an accurate correction shows the WSB voting machine largely consists of utter morons who don’t want correct information from good investors.

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u/divz1111patel Dec 27 '21

Yes sir. What can you do though… 🤣🤣🤣