The scores describe a business with few weak points. A moat score of 90 and management score of 100 point to a company converting capital efficiently, with an 18.0% return on invested capital, an 82.0% gross margin, and debt to equity of just 0.4x. Those figures describe durability and discipline, not just size.
The margin of safety score of 61 is lower, and the gap explains why. At $599.12, the share price sits above all three reference prices: the margin of safety price of $365.28, the 10-cap price of $264.12, and the consensus buy price of $416.94. The model builds those numbers from a 15.0% growth assumption, deliberately held below the 19.0% growth actually measured from history, and a 27.5x exit multiple, with the stock currently trading at 22.6x earnings and a 2.8% free cash flow yield.
The tension is straightforward. The underlying business scores about as well as this framework allows, but the current price already sits well above what even a conservative version of its own growth history would justify paying.
| Price | $665.75 |
| Market cap | $1.7T |
| P/E ratio | 25.1x |
| Return on invested capital | 18.0% |
| Gross margin | 82.0% |
| Debt to equity | 0.39x |
| Free cash flow yield | 2.8% |
| Growth rate used | 15.0% |
| Growth rate measured | 19.0% |
| Exit multiple assumed | 27.5x |
| Company | Moat | Mgmt | Margin of safety |
|---|---|---|---|
| Alphabet Inc. (GOOGL) | 94 | 100 | 82 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Meta Platforms Inc. rather than accepting ours.