u/Altruistic-Leader-63 ·
Reddit — r/ValueInvesting
· June 03, 2026 at 02:09
· ⬆ 15 pts
· 💬 30 comments
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Summary
The author compares META, MA, and RDDT using valuation metrics (P/E, PEG, growth rates) and asks which to buy.
Thesis leans toward value plays: META appears cheap on PEG and has high upside to price target; RDDT shows explosive growth but high P/E; MA is fairly valued with steady growth.
Quality is moderate: data is factual but lacks deep fundamental analysis or catalyst identification; more of a screening discussion than a well-researched DD.
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Meta:
1.6T market cap
Current price: 600
52 week low: 520
Forward PE: 19 vs 14x industry average
0.93 PEG ratio
0.4% dividend
839 average price target (39% upside)
Revenue up 30% YoY, income up 60% YoY
Mastercard
400m market cap
Current price: 480
52 week low: 480
Forward PE: 25.9 vs 28 industry average
1.59 PEG
0.66% dividend
650 average price target (35% upside potential)
Revenue and income up 15, 18% YoY
Reddit
32m market cap
Current price: 167
52 week low: 109
Forward PE: 33.3 vs 14 industry average
0.76 PEG
No dividend
224 average price target (34% change)
Revenue and income up 69 and 680% YoY
Which of these would you buy? What other value plays are attractive?
META forward PE of 19 vs industry 14, PEG 0.93, revenue +30% YoY, income +60% YoY, average PT $839 implying 39% upside. Low PEG suggests undervaluation relative to growth, and large cap tech with strong earnings momentum often re-rates higher. META offers a favorable risk/reward as a growth-at-reasonable-price (GARP) play with a dividend kicker. Ad market slowdown, regulatory headwinds in EU/US, or capex overshoot on AI investments could pressure margins.
MA forward PE 25.9 vs industry 28, PEG 1.59, revenue +15% YoY, income +18% YoY, average PT $650 implying 35% upside. Slight discount to industry PE and steady double-digit growth make it a defensive compounder, but PEG above 1 limits deep value appeal. MA is a high-quality business trading near fair value; worth monitoring for a better entry or catalyst. Regulatory pressure on interchange fees, consumer spending slowdown, or fintech disruption could cap upside.
RDDT forward PE 33.3 vs industry 14, PEG 0.76, revenue +69% YoY, income +680% YoY, average PT $224 implying 34% upside. Extremely high revenue growth and near-zero PEG suggest the company is early in monetization; if growth persists, current valuation may be attractive. RDDT is a high-risk/high-reward growth bet with potential for multiple expansion as profitability scales. High forward PE vs peers, dependence on ad revenue, competition from larger platforms, and profitability may not be sustainable.
This Reddit post, published June 03, 2026,
features u/Altruistic-Leader-63
discussing META, MA, RDDT.
3 trade ideas extracted by AI with direction and confidence scoring.