FB Valuation

FB -  USA Stock  

USD 329.66  6.85  2.04%

Do you wonder what the value of Facebook is? Facebook Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 23.63 Billion. The current year Tangible Asset Value is expected to grow to about 150.7 B, whereas Enterprise Value is forecasted to decline to about 617.5 B.
Facebook shows a prevailing Real Value of $341.89 per share. The current price of the firm is $329.66. At this time, the firm appears to be fairly valued. Our model computes the value of Facebook from reviewing the firm fundamentals such as Operating Margin of 48.09 %, profit margin of 35.74 %, and Current Valuation of 850.62 B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.

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Facebook Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Facebook's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today
329.66
18th of June 2021
Share
Facebook is very steady asset. Calculation of real value of Facebook is based on 3 months time horizon. Increasing Facebook time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Our valuation method for Facebook is useful when determining the fair value of the FB stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Facebook. Since Facebook is currently traded on the exchange, buyers and sellers on that exchange determine the market value of FB Stock. However, Facebook's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
296.69
Downside
341.89
Real Value
343.67
Upside
Estimating the potential upside or downside of Facebook helps investors to forecast how FB stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Facebook more accurately as focusing exclusively on Facebook's fundamentals will not take into account other important factors:
Earnings
Estimates (15)
LowProjected EPSHigh
12.0513.1814.65
Details
Hype
Prediction
LowEstimated ValueHigh
327.68329.46331.24
Details
Naive
Forecast
LowNext ValueHigh
329.67331.44333.22
Details
29 Analysts
Consensus
LowTarget PriceHigh
270.00365.12460.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. Some money managers use Facebook's intrinsic value based on its ongoing forecasts of Facebook's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by look to relative valuation against Facebook's closest peers. When choosing a valuation method Facebook, make sure it is appropriate for the firm given its current financial situation and market classification. If more than one is valuation category is appropriate, we suggest using both methods to arrive at a better estimate.

Facebook Investments

54.61 BillionShare

FB Valuation Drivers Correlation

Many accounts on the financial statements of Facebook are highly interrelated and sometimes correlated. Consequently, when conducting FB's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of FB
Click cells to compare fundamentals

FB Market Cap

Facebook is rated # 2 in market capitalization category among related companies. Market capitalization of Internet Content & Information industry is currently estimated at about 1.94 Trillion. Facebook totals roughly 954.9 Billion in market capitalization claiming about 49% of equities under Internet Content & Information industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

Facebook Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Facebook's current stock value. Our valuation model uses many indicators to compare Facebook value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Facebook competition to find correlations between indicators driving Facebook's intrinsic value. More Info.
Facebook is rated # 3 in price to earning category among related companies. It is rated # 5 in beta category among related companies totaling about  0.04  of Beta per Price to Earning. The ratio of Price to Earning to Beta for Facebook is roughly  22.37 

About Facebook Valuation

The equity valuation mechanism determines the current worth of Facebook on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Facebook. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Facebook based exclusively on its fundamental and basic technical indicators. By analyzing Facebook's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Facebook's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Facebook. We calculate exposure to Facebook's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Facebook's related companies.
Last ReportedProjected for 2021
Gross Profit69.3 B74.7 B
Profit Margin 0.34  0.33 
Facebook, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California. Facebook operates under Internet Content Information classification in the United States and is traded on NASDAQ Exchange. It employs 60654 people.

Facebook Quarterly Enterprise Value

831.8 BillionShare

Facebook Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Facebook does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio5.86
Earnings Quarterly Growth93.70%
Revenue Growth47.60%
Enterprise Value To Ebitda18.74
Earnings Growth93.00%
Enterprise Value To Revenue9.01

Facebook Current Valuation Indicators

Valuation refers to the process of determining the present value of Facebook and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value FB we look at many different elements of the entity such as FB's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Please check Investing Opportunities. Note that the Facebook information on this page should be used as a complementary analysis to other Facebook's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Complementary Tools for Facebook Stock analysis

When running Facebook price analysis, check to measure Facebook's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Facebook is operating at the current time. Most of Facebook's value examination focuses on studying past and present price action to predict the probability of Facebook's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Facebook's price. Additionally, you may evaluate how the addition of Facebook to your portfolios can decrease your overall portfolio volatility.
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The market value of Facebook is measured differently than its book value, which is the value of FB that is recorded on the company's balance sheet. Investors also form their own opinion of Facebook's value that differs from its market value or its book value, called intrinsic value, which is Facebook's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Facebook's market value can be influenced by many factors that don't directly affect Facebook underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Facebook's value and its price as these two are different measures arrived at by different means. Investors typically determine Facebook value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Facebook's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.