Well, compare http://investor.google.com/financial/tables.html http://investor.google.com/financial/tables.html with http://www.siemens.com/annual/11/_pdf/si

Well, compare http://investor.google.com/financial/tables.html http://investor.google.com/financial/tables.html with http://www.siemens.com/annual/11/_pdf/siemens_ar2011_cfs.pdf http://www.siemens.com/annual/11/_pdf/siemens_ar2011_cfs.pdf and you'll see that Siemens had an EBITDA of eur 9,242 million, while Google had an EBITDA of 2.79 billion Facebook has a projected EBITDA of 2 billion or so, based on 250 million in 4th quarter earnings. So, if you applied traditional valuation methods, Siemens should be worth more than Google or Facebook. However, Siemens is more stable, while both Facebook and Google haven't tapped into more potential sources of income, and that's what investors are recognizing by valuing it that way.