Not just you. People are blowing the valuation out of proportion. A 100 PE ratio is completely understandable for an earth-changing company like Facebook at thi

Not just you. People are blowing the valuation out of proportion. A 100 PE ratio is completely understandable for an earth-changing company like Facebook at this stage in its growth. I myself wouldn't invest at that price, but that doesn't mean it's entirely bonkers. This reminds me of the late 1990s, when Blodget said that AMZN would go to $400. It was so outlandishly ridiculous that his crazy "Amazon 400" prediction was all anyone could talk about. In a few weeks, the stock actually went to 400. Then it went to $1200 (split adjusted). Today it's $2232 (split adjusted). Like all stocks, it went up and down (a lot) in the meantime. It is completely absurd, too, to compare the PE ratio of a company that's growing at Facebook's rate to the PE ratio of a company like Kraft. Completely absurd. It's such a fundamental error in understanding how to value companies that the OP's entire analysis is safe to ignore.