[tritchey]

I laughed out loud when I read that quote. Facebook's valuation is ENTIRELY based on what other people think it is worth.

[prospero]

It's based entirely on what people think it is worth, given disclosure of the relevant details. No one outside of Facebook (and, presumably, its investors) has that information.

That being said, I don't think Facebook is being honest with themselves or anyone else with respect to their valuation.

[moonpolysoft]

All companies are valued entirely based on what other people think they are worth. See also: the stock market.