Meta is currently trading at one of the lowest P/OCF multiples among the big tech names, which is interesting given how strong its fundamentals have been.
For context, P/OCF looks like this right now:
Meta \~12x
Microsoft \~20x
Amazon \~19x
Google \~26x
Comparison pulled from StockNest: stocknest.app/?t=AMZN,GOOGL,META,MSFT&m=pocf
Over the past five years, Meta has also compounded strongly:
Revenue growth has been solid (\~16% CAGR), net income has grown steadily, and operating cash flow has expanded at an even faster pace.
What stands out is that despite heavy AI-related capex across the sector, Meta continues to generate significant operating cash flow while still growing at a strong rate. That combination is part of why the valuation gap vs peers looks notable.