Hey folks, not kidding. Meta’s last 3 month EPS came in 1.64$. With this, Meta’s forward PE is going to be 15 on CMP (104$). For company with negative growth in revenue for next couple of years and huge cash burn in Metaverse, I think investor are going to value Meta in single digit PE. Also free cash flow is shrinkng at very ffast pace due to cash burn in Meta labs. Valuing Meta at 9 PE - should come at 60$. I hope I am wrong but company with such future putlook and subpar growth cant trade around 12+ PE.
Question on P/E calculation Currently, Price = 130 EPS = 1.64 Shouldn’t the p/e be 130/1.6 = 80? Any error in this calculation?
1.64 eps is for last 3 months only. 12 monthly eps would be 4x if facebook performance is same as current qrter for next 3 qrter
Thanks. Annualized eps would be 6. So p/e 130/6 = 20.