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by nousernamesleft 4496 days ago
>Why is their stock overvalued?

Because delusional people still didn't learn their lesson from the first bubble.

>Do you have any evidence of this

Their P/E is 112. That's the very definition of overvalued. The price of their stock makes the company worth far more than they earn. If you purchased facebook, it would take you 112 years to break even on that "investment" at their current earning rate.

1 comments

Consensus analyst 12 month estimate (Feb 15th) is Hi: $82, Lo:$24, Mean: $70. So basically, consensus growth on the year in the stock price is 3%. Compare that to a market of 32% last year. Does not look like the analysts think FB is going to grow much. It's going to take a while to grow into that valuation.