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100 Billion valuation of FB would put its P/E ratio at around 100 – that's high Here's how I think about Facebook's valuation: I compare to Google. Facebook is
by alain94040 15y ago
100 Billion valuation of FB would put its P/E ratio at around 100 – that's high
Here's how I think about Facebook's valuation: I compare to Google. Facebook is the only player that can challenge Google's supremacy. Today, in terms of time spent, they are equal to Google. So at a minimum, they should be worth a quarter of Google's value. Maybe half. Probably not quite as much as Google yet, but close. Guess what. Google is at $200B. So valuing Facebook at $100B looks very reasonable to me. I'd say that at $50B, it would be a steal.
- incongruity 15y agoSo, you explicitly ignore the P/E ratio in your assessment? Because, if not, here's a graph of Google's P/E ratio (currently 18.64): http://bit.ly/Jk8VAj http://bit.ly/Jk8VAj – compared to FB's projected P/E ration which is predicted to be over 5 times as much.