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"FB revenue growth is still insane" Agreed, but in order to justify the massive P/E they would have to be growing quite a lot for the next 10 years. I don't s
by edblarney 10y ago
"FB revenue growth is still insane"
Agreed, but in order to justify the massive P/E they would have to be growing quite a lot for the next 10 years.
I don't seem them delivering this kind of growth over that time.
Maybe.
Google was able to do it for a long while.
- justapassenger 10y agoGoogle has P/E ratio of 28. Facebook P/E ratio is right now only ~60% bigger, at 46 (and it already showed huge drop from >100 last year, as earnings are catching up with investors bets). G revenue is growing at the rate of ~20%, while FB is doing >50%. If stock price for FB growth continues, it'll reach Google P/E ratio pretty soon - not 10 years. More like a year.