Meta Platforms Inc (META) is undervalued and Spotify Technology SA (SPOT) is overvalued.
Against our estimates of intrinsic value, META trades at the wider discount: a margin of safety of +34%, against -71% for SPOT.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 12.1% (average of 3 methods) values the shares at $292.81; the price of $501.30 is 71% above that value, and 67% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | META | SPOT |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $736.59 | $501.30 |
| Intrinsic value | $1109.18 | $292.81 |
| Margin of safety | +34% | -71% |
| Leak Score | 81/100 (8/12) | 59/100 (3/12) |
| Market cap | $1.88T | $103.2B |
| Revenue growth, 5 years | 18.5% | 16.6% |
| Operating margin | 38.1% | 14.6% |
| Net margin | 29.8% | 18.4% |
| Return on equity | 29.8% | 44.9% |
| Debt to equity | 0.43 | 0.06 |
| P/E | 27.8x | 31.2x |
| Forward P/E | 21.8x | 28.5x |
| P/B | 7.2x | 10.8x |
| Dividend yield | 0.3% | — |