Comparing Meta Platforms With Industry Competitors In Interactive Media & Services Industry - Meta Platforms (NASDAQ:META)

Company Overview - Meta Platforms is the largest social media company globally, with nearly 4 billion monthly active users [2] - The core business, "Family of Apps," includes Facebook, Instagram, Messenger, and WhatsApp, which are used for various purposes, including social interaction and digital business [2] - Meta generates revenue by selling ads based on customer data collected from its applications, while its Reality Labs business remains a minor part of overall sales [2] Financial Metrics - Meta's Price to Earnings (P/E) ratio is 27.76, which is 0.42x lower than the industry average, indicating potential undervaluation [5] - The Price to Book (P/B) ratio is 9.85, 2.09x the industry average, suggesting overvaluation in terms of book value [5] - The Price to Sales (P/S) ratio is 11.1, which is 0.14x the industry average, indicating strong revenue generation relative to market capitalization [5] - Return on Equity (ROE) stands at 9.65%, 7.09% above the industry average, reflecting efficient equity use for profit generation [5] - Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $25.12 billion, 7.12x above the industry average, showcasing strong profitability [5] - Gross profit is $39.02 billion, 6.94x above the industry average, highlighting robust earnings from core operations [5] - Revenue growth is 21.61%, surpassing the industry average of 11.32%, indicating strong sales expansion and market share gain [5] Debt and Financial Health - Meta's debt-to-equity (D/E) ratio is 0.25, indicating a lower reliance on debt financing compared to peers, which is favorable for investors [10] - The comparison of financial metrics shows that Meta has a stronger financial position with lower debt levels relative to its top competitors [10]