Alphabet Inc, Google owner is currently valued at 1.29 trillion USD.
I estimate Alphabet's intrinsic value is around 700 billion USD. Actually, Alphabet's market capitalisation was much higher only 1 year ago. However, as far as I am concerned the market was extrapolating just too high a rate of advertising growth for Google, the ubiquitous search engine.
Advertisement spending is high and growing briskly when economic times are good. Not like now, when the world is on the brink of World War Three.
For Meta inc, Facebook's owner the same argument that advertisement spending just would not grow as high as recently is valid.
However, due to regulatory pressure and Meta, being a very young and still not mature company, Meta, Facebook's owner market capitalisation has already fallen a lot and currently stands at circa 359 billion USD.
As far as I am concerned, Meta's intrinsic value lies around 370 billion USD, so Meta, Facebook's owner is a case in point where, not very often the company's current market capitalisation reflects its intrinsic value, at least according to my projections and calculations.
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