No qualifying author-owned investment thesis was confirmed in this post.
The author is asking a question about valuation methodology rather than expressing a directional investment judgment.
Score6
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Came across this article today, which sparked my curiosity:
[https://www.wsj.com/livecoverage/jobs-report-unemployment-stock-market-02-11-2026/card/meta-auditor-ey-raised-red-flag-on-data-center-accounting-TrOVlxGZGnL37d8Dv01h?mod=author\_content\_page\_1\_pos\_2](https://www.wsj.com/livecoverage/jobs-report-unemployment-stock-market-02-11-2026/card/meta-auditor-ey-raised-red-flag-on-data-center-accounting-TrOVlxGZGnL37d8Dv01h?mod=author_content_page_1_pos_2)
The article raises the question of how to account for future lease agreements. I accounted it in the form of an annuity, which results in the following NPV of the cash (out)flow:
(-3,250,000,000\*((1-(1+0.066)\^(-4))/0.066))/(1+0.066)\^(3) = -9,170,370,241
Given Meta's total lease obligation for the Hyperion Datacenter is estimated at $13 billion over a 4 year period (13,000,000,000 / 4 = 3,250,000,000) and the joint venture has bond obligations with a 6.6% discount rate.
Normally you should not use the financing interest rates as the discount rate for projects. However, given this is all the join venture does, I believe it would make sense, given the interest rate accounts for all (and only the) risk of this project.
Am I correct in deducting 9.1 billion in from my fair value estimate? This would bring my fair value estimate to $685.79 per share, which is roughly equal to market value.