Mag 7 Stocks: Valuation Comparison
The Magnificent 7 stocks — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla — dominate the US market by weight. But which one is the best value right now? The table below ranks all seven by StockPik's Value Score, alongside live P/E, P/B, PEG, ROE, and gross margin data pulled from SEC EDGAR filings.
Data updates weekly. A higher Value Score indicates relatively better value on fundamental metrics — though all mag 7 stocks trade at premium multiples compared to the broader market.
Which Mag 7 stock is the best value?
The table above ranks all seven by StockPik's Value Score, which combines nine fundamental metrics — P/E, P/B, PEG, P/S, ROE, gross margin, debt-to-equity, current ratio, and dividend yield — into a single 0–100 score. A higher score means relatively better value on those metrics.
By that measure, GOOGL currently ranks as the highest-value Mag 7 stock, while TSLA scores lowest. That said, even the highest-scoring Mag 7 stock trades at multiples well above the market median — these are growth companies, not deep value picks. The comparison is most useful for identifying which of the seven offers the most favourable entry point on a relative basis.
Note that Tesla's score is heavily influenced by its P/E ratio, which fluctuates sharply with earnings. Nvidia's gross margin and ROE are exceptional but its P/E is elevated. Alphabet and Meta tend to score better on value metrics than the others due to lower P/B ratios and strong free cash flow.
FAANG stocks vs Mag 7: what changed?
The original FAANG stocks — Facebook (now Meta), Apple, Amazon, Netflix, and Google (now Alphabet) — were coined as a shorthand for the dominant US tech giants through the 2010s. By the early 2020s the term was updated to FAANGM to include Microsoft, then fell out of use as Netflix's market cap diverged significantly from the others.
The Magnificent 7 replaced FAANG as the standard grouping from around 2023, dropping Netflix and adding Microsoft and Nvidia, which had surged on the back of AI infrastructure demand. The seven are now regularly cited as the group most responsible for S&P 500 returns in recent years, collectively accounting for a large share of total index weight.
From a value investing perspective, the shift matters: Netflix and Nvidia are very different businesses. Netflix generates strong cash flow but slower growth; Nvidia has exceptional margins but trades at a significant premium. Comparing the Mag 7 on fundamentals — rather than just performance — is the more useful exercise for long-term investors.
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