Facebook Fundamental Relationships

FB -- USA Stock  

USD 174.70  4.83  2.69%

The Drivers Module shows relationships between Facebook's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Facebook over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities

Facebook Operating Margin vs. Price to Sales Fundamental Analysis

Facebook is rated below average in price to sales category among related companies. It is rated below average in operating margin category among related companies reporting about  5.46  of Operating Margin per Price to Sales.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Facebook 
P/S 
 = 
MV Per Share 
Revenue Per Share 
=
10.34 times
The most important factor to remember is that the price of equity takes a firm's debt into account, whereas the sales does not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Facebook 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
=
56.49 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.

Facebook Operating Margin Comparison

  Operating Margin 
      Facebook Comparables 
Facebook is rated below average in operating margin category among related companies.
  Revenue 
      Facebook Comparables 
Facebook is rated below average in revenue category among related companies.