Baidu Inc ADR (BIDU) is overvalued and Meta Platforms Inc (META) is undervalued.
Against our estimates of intrinsic value, META trades at the wider discount: a margin of safety of +34%, against -26% for BIDU.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.1% (average of 2 methods) values the shares at $73.52; the price of $92.43 is 26% above that value, and 82% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
A 12.5x revenue multiple, adjusted for growth and margin, values the shares at $1109.18; the price of $736.59 is 34% below that value.
Leak Score 81/100 on 8 of 12 signals
| Metric | BIDU | META |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $92.43 | $736.59 |
| Intrinsic value | $73.52 | $1109.18 |
| Margin of safety | -26% | +34% |
| Leak Score | 0/100 (2/12) | 81/100 (8/12) |
| Market cap | $25.5B | $1.88T |
| Revenue growth, 5 years | 3.0% | 18.5% |
| Operating margin | 7.0% | 38.1% |
| Net margin | -3.4% | 29.8% |
| Return on equity | -1.6% | 29.8% |
| Debt to equity | 0.42 | 0.43 |
| P/E | — | 27.8x |
| Forward P/E | 13.2x | 21.8x |
| P/B | 0.8x | 7.2x |
| Dividend yield | 1.9% | 0.3% |