META Has 20% Upside as it trades near decade lows

META currently trades at 6.15 times its trailing-twelve-month sales per share. With the stock at $546.74 and TTM sales of $88.95 a share, that multiple sits near the bottom of its ten-year range. On earnings it is the same: 20.60 times the $26.54 in trailing earnings per share, again close to decade lows.

The reason is straightforward. From mid-2025 onward the share price and the underlying business moved in opposite directions.

The earnings multiple shows the same pattern.

A stock can look inexpensive on sales yet expensive on earnings when margins are shrinking. That is not the case here. Earnings per share rose in step with sales, increasing 17 percent, while the earnings multiple itself fell 36 percent.

How today’s multiples rank against META’s own history

The table below shows where the current price-to-sales and price-to-earnings multiples rank against META’s own history over different look-back windows.

18–20% Upside to Historical Multiples

From here, META would need to rise 20% to reach the middle of its own valuation range. Its median price-to-sales multiple over the past five years is 7.40 times. Applied to today’s trailing sales of $88.95 per share, that points to a price of $658.55.

The gap is narrower on the earnings side. The five-year median multiple of 24.31 times, applied to trailing earnings of $26.54 per share, implies a price of $645.16, or 18% higher than today’s level.

Note

“Cheap” in this analysis means inexpensive only relative to META’s own historical range. It does not speak to valuation versus peers or to the intrinsic value of the business. A multiple can remain low for years if the market has simply re-rated the company.