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You're conflating revenues and earnings. Their valuation is at 33x revenues. Their P/E right now is likely somewhere in the hundreds.
by mikeryan 16y ago
You're conflating revenues and earnings. Their valuation is at 33x revenues. Their P/E right now is likely somewhere in the hundreds.
- jamiequint 16y agoYou're right, mixed that up. However, I'd be willing to bet that by the time Facebook IPOs their P/E will be lower or equal to Google's P/E at the time of IPO.
- jamiequint 16y agoHow about an explanation instead of just downvotes. This is a totally reasonable statement given FB revenues (yes I know this is not equal to earnings) compared to Google's in 2003.
- michaelchisari 16y agoThe most information we've gotten about profits is that it's in the "tens of millions". Now, to make the math easy, let's say they have profits of $33 million. That puts their P/E ratio at 1,000.