Meta‘s CAPE ratio

The CAPE ratio for Meta (formerly Facebook) compares its current stock price to the average inflation-adjusted earnings over the past 10 years. Meta’s CAPE ratio tends to be higher due to its significant growth potential in social media, advertising, and the metaverse. A high CAPE ratio may suggest the stock is overvalued, with lower future returns, while a low CAPE could indicate undervaluation and room for growth. Investors use Meta’s CAPE ratio to assess whether its market price is justified by its long-term earnings potential, particularly considering its evolving business strategy.