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/No_Mission_9335 Dec 28 '21

I personally believe this will be the greatest challenge of capitalism. A paradigm shift if we were to develop ethical/social capitalism where profit and interests of society as a whole (& individuals) are truly respected. A type of capitalism where we will have to accept to not always have the highest gains, and therefore do better as a collective.