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It’s easy to be generous when times are good and your equity is significantly overvalued relative to fundamentals
by adam_arthur 4y ago
It’s easy to be generous when times are good and your equity is significantly overvalued relative to fundamentals
- AbrahamParangi 4y agoAnd yet, many are still not generous when times are good.
- adam_arthur 4y agoMany were. And now that their stocks are down 90%, they aren’t
- phonebucket 4y ago> equity is significantly overvalued relative to fundamentals Which fundamentals? The $117.9 billion in revenue and $39.4 billion of net profit in 2021 [1]? The price to earnings ratio of 9.22, which is far lower than the NASDAQ average of around 28.0 [2]? [1] https://www.statista.com/statistics/277229/facebooks-annual-revenue-and-net-income/ https://www.statista.com/statistics/277229/facebooks-annual-... [2] https://ycharts.com/companies/NDAQ/pe_ratio https://ycharts.com/companies/NDAQ/pe_ratio
- adam_arthur 4y agoThose stats are for now, not then. Good try though And they are vaporizing all of their FCF by reinvesting into the metaverse. Or were until the stock continued to collapse. It’s fair value here if you assume the metaverse is actually something they can monetize in a big way. Too far off for most investors