Here was my "valuation model" when they raised at 800M: 5 Years From When they raised : 100M Users X $4 worth of advertising per user X 50% margin = $200M Cash

Here was my "valuation model" when they raised at 800M: 5 Years From When they raised : 100M Users X $4 worth of advertising per user X 50% margin = $200M Cash Flow X 20 Times earnings = $4BN - solving for a 50% IRR over 5 years gives you $800M The $4/user comes from here: http://techcrunch.com/2013/01/30/facebooks-revenue-per-user-in-north-america-is-now-3-4x-europe-and-nearly-6x-asia-but-growth-in-its-cash-cow-is-slowing-down/ http://techcrunch.com/2013/01/30/facebooks-revenue-per-user-...