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by steevenwee 3295 days ago
I wonder if Facebook going to repeat that.
2 comments

FB had $10.2bn net income in 2016 on $27.6bn revenue. How can it drop back to its $100bn IPO valuation?
If FB were to stop growing at the rate it has been, ~100bn would be a reasonable target market cap, given a P.E. Ratio of around 10.
2017 is half over. Facebook is going to make about $14bn net income in 2017. At a PE of 10 that's $140bn.

The S&P has an average PE of 15.6. That brings us to $218bn.

It's mindboggling any of you can think FB would drop back to IPO valuation at this size. Maybe in 40 years when the world has changed dramatically and most of us are retired or dead.

Facebook is way over that kind of instability.