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At least. Some numbers. NOW the debate is going to be fun, with some numbers to play with... So let's see... Google is valued at $195B, and had a profit of $6

At least. Some numbers. NOW the debate is going to be fun, with some numbers to play with... So let's see... Google is valued at $195B, and had a profit of $6.5B in 2009. 6.5/195 => 0.033 Apple is valued at $306B, and had a profit of $14B in 2009. 14.0/306 => 0.045 Same ballpark. Now... Facebook is valued at $50B, and had a profit of $200MM in 2009. 0.2/50 => 0.004 Facebook over-valued in the long term ? Sure. In the short term ? It's the (speculative) market at work.

sandee 16y ago
The average of both Google and Apple = (0.033 + 0.045)/2 = 0.039 Assuming a profit of 500M over a revenue of 2B , the valuation should be = 0.5/0.039 = 12.82B The valuation of Facebook is 3.9x over this, which does not look so bad !