META trades at a 20.5 P/E ratio, below the S&P 500’s 32.2, despite 33% revenue growth in Q1.
Meta Platforms (NASDAQ: META) is trading at its lowest price-to-earnings ratio among the Magnificent Seven stocks, currently at 20.5. The S&P 500, by comparison, sits at 32.2, highlighting META’s relative undervaluation.
First-quarter revenue surged 33% year over year, with operating income up 30%. Despite this growth, META’s stock has fallen over 10% year to date, contrasting with its strong fundamentals. Online advertising, its core business, continues to deliver high profit margins.
META’s growth rates outpace most S&P 500 companies and several Magnificent Seven peers, reinforcing its valuation gap. Analysts suggest the stock may not remain this cheap for long given its trajectory.