Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. The last earnings update was 11 days ago. More info.
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- Facebook has significant price volatility in the past 3 months.
FB Share Price and Events
7 Day Returns
1 Year Returns
FB Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Facebook (FB) | -3.6% | -5.7% | -19.5% | -18.8% | 33% | 213.8% |
| US Interactive Media and Services | -1.7% | -2.1% | -15.5% | -2.6% | 40.9% | 132.8% |
| US Market | 1.6% | 2.3% | -2.2% | 12.4% | 55.2% | 105.4% |
1 Year Return vs Industry and Market
- FB underperformed the Interactive Media and Services industry which returned -2.6% over the past year.
- FB underperformed the Market in United States of America which returned 12.4% over the past year.
Value
Is Facebook undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Facebook
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Facebook.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 45 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.7% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| Interactive Media and Services Unlevered Beta | Simply Wall St/ S&P Global | 0.95 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.951 (1 + (1- 21%) (0.02%)) |
0.951 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.95 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.951 * 7.05%) |
9.65% |
Discounted Cash Flow Calculation for NasdaqGS:FB using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Facebook is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 14,480.34 | 18,777.72 | 24,677.86 | 28,647.38 | 33,230.96 |
| Source | Analyst x14 | Analyst x14 | Analyst x5 | Analyst x4 | Est @ 16%, capped from 37.13% |
|
Present Value Discounted (@ 9.65%) |
13,205.71 | 15,617.41 | 18,717.88 | 19,816.04 | 20,963.22 |
| Present value of next 5 years cash flows | $88,320.25 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $33,230.96 × (1 + 2.95%) ÷ (9.65% – 2.95%) |
$510,455.59 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $510,455.59 ÷ (1 + 9.65%)5 |
$322,012.78 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $88,320.25 + $322,012.78 |
$410,333.03 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $410,333.03 / 2,873.79 |
$142.78 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $142.78 |
| Current discount | Discount to share price of
$144.96
= -1 x ($144.96 - $142.78) / $142.78 |
-1.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Facebook is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Facebook's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Facebook's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-09-30) in USD | $6.73 |
| NasdaqGS:FB Share Price ** | NasdaqGS (2018-11-09) in USD | $144.96 |
| United States of America Interactive Media and Services Industry PE Ratio | Median Figure of 24 Publicly-Listed Interactive Media and Services Companies | 27.41x |
| United States of America Market PE Ratio | Median Figure of 2,971 Publicly-Listed Companies | 18.17x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Facebook.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:FB Share Price ÷ EPS (both in USD) = 144.96 ÷ 6.73 |
21.55x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Facebook is good value based on earnings compared to the US Interactive Media and Services industry average.
- Facebook is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Facebook's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 21.55x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 45 Analysts |
11.7%per year |
| United States of America Interactive Media and Services Industry PEG Ratio | Median Figure of 24 Publicly-Listed Interactive Media and Services Companies | 1.1x |
| United States of America Market PEG Ratio | Median Figure of 2,086 Publicly-Listed Companies | 1.27x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 21.55x ÷ 11.7% |
1.85x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Facebook is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Facebook's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in USD | $27.96 |
| NasdaqGS:FB Share Price * | NasdaqGS (2018-11-09) in USD | $144.96 |
| United States of America Interactive Media and Services Industry PB Ratio | Median Figure of 52 Publicly-Listed Interactive Media and Services Companies | 3.24x |
| United States of America Market PB Ratio | Median Figure of 4,972 Publicly-Listed Companies | 1.88x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:FB Share Price ÷ Book Value per Share (both in USD) = 144.96 ÷ 27.96 |
5.18x |
* Primary Listing of Facebook.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Facebook is overvalued based on assets compared to the US Interactive Media and Services industry average.
Value checks
We assess Facebook's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check) Facebook has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Facebook expected to perform in the next 1 to 3 years based on estimates from 45 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Facebook's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
- Facebook's earnings growth is positive but not above the United States of America market average.
- Facebook's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:FB Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 45 Analysts | 11.7% |
| NasdaqGS:FB Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 45 Analysts | 18.1% |
| United States of America Interactive Media and Services Industry Earnings Growth Rate | Market Cap Weighted Average | 14.1% |
| United States of America Interactive Media and Services Industry Revenue Growth Rate | Market Cap Weighted Average | 16.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.4% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 45 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 111,432 | 56,983 | 34,065 | 12 |
| 2021-12-31 | 98,472 | 47,881 | 30,090 | 14 |
| 2020-12-31 | 83,462 | 39,659 | 25,514 | 34 |
| 2019-12-31 | 68,844 | 34,188 | 21,835 | 45 |
| 2018-12-31 | 55,366 | 29,825 | 21,564 | 44 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-09-30 | 51,896 | 29,327 | 19,497 |
| 2018-06-30 | 48,497 | 27,956 | 19,063 |
| 2018-03-31 | 44,587 | 27,018 | 17,848 |
| 2017-12-31 | 40,653 | 24,216 | 15,920 |
| 2017-09-30 | 36,490 | 21,475 | 15,212 |
| 2017-06-30 | 33,173 | 19,384 | 13,129 |
| 2017-03-31 | 30,288 | 17,689 | 11,515 |
| 2016-12-31 | 27,638 | 16,108 | 10,188 |
| 2016-09-30 | 24,670 | 15,726 | 8,182 |
| 2016-06-30 | 22,160 | 13,882 | 6,453 |
| 2016-03-31 | 19,767 | 12,097 | 4,892 |
| 2015-12-31 | 17,928 | 10,320 | 3,669 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 45 Analyst Estimates (S&P Global) | See Below |
All data from Facebook Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 11.22 | 13.16 | 10.10 | 8.00 |
| 2021-12-31 | 10.18 | 11.84 | 8.86 | 10.00 |
| 2020-12-31 | 8.65 | 10.57 | 7.45 | 33.00 |
| 2019-12-31 | 7.44 | 8.76 | 6.03 | 42.00 |
| 2018-12-31 | 7.36 | 7.59 | 7.03 | 40.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-09-30 | 6.73 |
| 2018-06-30 | 6.57 |
| 2018-03-31 | 6.14 |
| 2017-12-31 | 5.49 |
| 2017-09-30 | 5.26 |
| 2017-06-30 | 4.55 |
| 2017-03-31 | 4.01 |
| 2016-12-31 | 3.56 |
| 2016-09-30 | 2.87 |
| 2016-06-30 | 2.28 |
| 2016-03-31 | 1.74 |
| 2015-12-31 | 1.31 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Facebook's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Facebook has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Facebook performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Facebook has delivered over 20% year on year earnings growth in the past 5 years.
- Facebook's 1-year earnings growth is less than its 5-year average (28.2% vs 50%)
- Facebook's earnings growth has not exceeded the US Interactive Media and Services industry average in the past year (28.2% vs 57.2%).
Earnings and Revenue History
All data from Facebook Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-09-30 | 51,896.00 | 19,497.00 | 9,914.00 | 9,367.00 |
| 2018-06-30 | 48,497.00 | 19,063.00 | 8,748.00 | 8,762.00 |
| 2018-03-31 | 44,587.00 | 17,848.00 | 7,882.00 | 8,158.00 |
| 2017-12-31 | 40,653.00 | 15,920.00 | 7,242.00 | 7,754.00 |
| 2017-09-30 | 36,490.00 | 15,212.00 | 6,814.00 | 7,368.00 |
| 2017-06-30 | 33,173.00 | 13,129.00 | 6,473.00 | 6,858.00 |
| 2017-03-31 | 30,288.00 | 11,515.00 | 6,024.00 | 6,410.00 |
| 2016-12-31 | 27,638.00 | 10,188.00 | 5,503.00 | 5,919.00 |
| 2016-09-30 | 24,670.00 | 8,182.00 | 5,014.00 | 5,670.00 |
| 2016-06-30 | 22,160.00 | 6,453.00 | 4,700.00 | 5,399.00 |
| 2016-03-31 | 19,767.00 | 4,892.00 | 4,317.00 | 5,097.00 |
| 2015-12-31 | 17,928.00 | 3,669.00 | 4,020.00 | 4,816.00 |
| 2015-09-30 | 15,938.00 | 2,811.00 | 3,832.00 | 4,613.00 |
| 2015-06-30 | 14,640.00 | 2,722.00 | 3,351.00 | 3,950.00 |
| 2015-03-31 | 13,507.00 | 2,795.00 | 3,008.00 | 3,273.00 |
| 2014-12-31 | 12,466.00 | 2,925.00 | 2,653.00 | 2,666.00 |
| 2014-09-30 | 11,201.00 | 2,749.00 | 2,281.00 | 1,964.00 |
| 2014-06-30 | 10,013.00 | 2,369.00 | 2,142.00 | 1,725.00 |
| 2014-03-31 | 8,916.00 | 1,913.00 | 2,027.00 | 1,577.00 |
| 2013-12-31 | 7,872.00 | 1,491.00 | 1,778.00 | 1,415.00 |
| 2013-09-30 | 6,871.00 | 1,014.00 | 1,889.00 | 1,303.00 |
| 2013-06-30 | 6,118.00 | 533.00 | 1,777.00 | 1,178.00 |
| 2013-03-31 | 5,489.00 | 65.00 | 2,157.00 | 1,539.00 |
| 2012-12-31 | 5,089.00 | 32.00 | 1,984.00 | 1,399.00 |
| 2012-09-30 | 4,635.00 | 194.00 | 1,633.00 | 1,226.00 |
| 2012-06-30 | 4,327.00 | 403.00 | 1,510.00 | 1,090.00 |
| 2012-03-31 | 4,038.00 | 700.00 | 835.00 | 484.00 |
| 2011-12-31 | 3,711.00 | 668.00 | 926.00 | 388.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Facebook has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Facebook used its assets more efficiently than the US Interactive Media and Services industry average last year based on Return on Assets.
- Facebook has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Facebook's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Facebook has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Facebook's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Facebook's finances.
The net worth of a company is the difference between its assets and liabilities.
- Facebook is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Facebook's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 702.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Facebook Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-09-30 | 80,342.00 | 70.00 | 41,206.00 |
| 2018-06-30 | 79,382.00 | 121.00 | 42,309.00 |
| 2018-03-31 | 77,620.00 | 98.00 | 43,956.00 |
| 2017-12-31 | 74,347.00 | 0.00 | 41,711.00 |
| 2017-09-30 | 71,208.00 | 0.00 | 38,289.00 |
| 2017-06-30 | 66,481.00 | 0.00 | 35,452.00 |
| 2017-03-31 | 62,188.00 | 0.00 | 32,306.00 |
| 2016-12-31 | 59,194.00 | 0.00 | 29,449.00 |
| 2016-09-30 | 54,115.00 | 0.00 | 26,140.00 |
| 2016-06-30 | 50,383.00 | 0.00 | 23,293.00 |
| 2016-03-31 | 47,150.00 | 0.00 | 20,621.00 |
| 2015-12-31 | 44,218.00 | 315.00 | 18,434.00 |
| 2015-09-30 | 41,420.00 | 324.00 | 15,834.00 |
| 2015-06-30 | 39,452.00 | 347.00 | 14,125.00 |
| 2015-03-31 | 37,501.00 | 384.00 | 12,413.00 |
| 2014-12-31 | 36,096.00 | 233.00 | 11,199.00 |
| 2014-09-30 | 21,238.00 | 278.00 | 14,250.00 |
| 2014-06-30 | 18,346.00 | 326.00 | 13,956.00 |
| 2014-03-31 | 16,737.00 | 392.00 | 12,629.00 |
| 2013-12-31 | 15,470.00 | 476.00 | 11,449.00 |
| 2013-09-30 | 13,048.00 | 575.00 | 9,328.00 |
| 2013-06-30 | 12,349.00 | 2,167.00 | 10,252.00 |
| 2013-03-31 | 11,824.00 | 2,261.00 | 9,472.00 |
| 2012-12-31 | 11,755.00 | 2,360.00 | 9,626.00 |
| 2012-09-30 | 14,174.00 | 902.00 | 10,452.00 |
| 2012-06-30 | 13,309.00 | 706.00 | 10,188.00 |
| 2012-03-31 | 5,597.00 | 706.00 | 3,910.00 |
| 2011-12-31 | 4,899.00 | 677.00 | 3,908.00 |
- Facebook's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (4.4% vs 0.1% today).
- Debt is well covered by operating cash flow (41895.7%, greater than 20% of total debt).
- Facebook earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess Facebook's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Facebook has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Facebook's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Facebook
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Facebook's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Facebook's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 45 Analyst Estimates (S&P Global) | See Below |
| Global Interactive Media and Services Industry Average Dividend Yield | Market Cap Weighted Average of 18 Stocks | 0.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1977 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-12-31 | ||
| 2021-12-31 | ||
| 2020-12-31 | 0.00 | 5.00 |
| 2019-12-31 | 0.00 | 6.00 |
| 2018-12-31 | 0.00 | 7.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Facebook has not reported any payouts.
- Unable to verify if Facebook's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Facebook's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Facebook afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Facebook has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $8,852,366 |
| AGE | 34 |
| TENURE AS CEO | 14.3 years |
CEO Bio
Mr. Mark Elliot Zuckerberg founded Facebook, Inc. in 2004 and has been its Chief Executive Officer since July 2004 and Chairman since January 2012. Mr. Zuckerberg is responsible for setting the overall direction and product strategy of Facebook. He leads the design of Facebook's service and development of its core technology and infrastructure. Mr. Zuckerberg is also a Co-Founder of Breakthrough Energy Coalition, which he co-founded in November 2015. He has been a Director of Facebook, Inc. since July 2004. He attended Harvard University where he studied computer science.
CEO Compensation
- Mark's compensation has increased by more than 20% in the past year.
- Mark's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Facebook management team in years:
- The tenure for the Facebook management team is about average.
Management Team
Mark Zuckerberg
Founder
$9M
34
14.3 yrs
Dave Wehner
Chief Financial Officer
$22M
49
4.4 yrs
Sheryl Sandberg
COO & Director
$25M
49
10.7 yrs
Mike Schroepfer
Chief Technology Officer
$22M
43
5.7 yrs
Chris Cox
Chief Product Officer
$22M
35
Susan Jannifer Taylor
Chief Accounting Officer
49
1.6 yrs
Atish Banerjea
Chief Information Officer
52
2 yrs
Deborah Crawford
Vice President of Investor Relations
4.3 yrs
Colin Stretch
VP & General Counsel
48
5.3 yrs
Nick Clegg
Head of Global Affairs & Communications
51
0.1 yrs
Board of Directors Tenure
Average tenure and age of the Facebook board of directors in years:
- The tenure for the Facebook board of directors is about average.
Board of Directors
Mark Zuckerberg
Founder
$9M
34
6.8 yrs
Sheryl Sandberg
COO & Director
$25M
49
6.4 yrs
Wilmot Hastings
Director
$349K
58
7.4 yrs
Erskine Bowles
Director
$399K
73
7.2 yrs
Sue Desmond-Hellmann
Lead Independent Director
$369K
61
3.4 yrs
Peter Thiel
Director
$349K
51
13.6 yrs
Marc Andreessen
Director
$369K
47
10.4 yrs
Ken Chenault
Director
66
0.8 yrs
Jeff Zients
Director
51
0.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Start | End | Shares | Max Price ($) | Value ($) |
|---|
Management checks
We assess Facebook's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Facebook has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
External News
Simply Wall St News
What Should Investors Know About Facebook Inc's (NASDAQ:FB) Capital Returns?
and want a simplistic look at the return on Facebook Inc (NASDAQ:FB) stock. … Your return is tied to FB’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … To understand Facebook’s capital returns we will look at a useful metric called return on capital employed.
Simply Wall St - – Full articleIs Facebook Inc's (NASDAQ:FB) ROE Of 24.02% Sustainable?
This analysis is intended to introduce important early concepts to people who are starting to invest. … If FB borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface.
Simply Wall St - – Full articleFacebook Inc (NASDAQ:FB): A Look At Return On Capital
This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Facebook, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Simply Wall St - – Full articleHave Investors Priced In Facebook Inc's (NASDAQ:FB) Growth?
The company's stock. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, what if the stock is still a bargain?
Simply Wall St - – Full articleStocks Take A Hit: How Will Facebook Inc (NASDAQ:FB) Fare?
Founded in 2004, and led by CEO Mark Zuckerberg, the company now has 27,742 employees and with the stock's market cap sitting at US$543.23B, it comes under the large-cap stocks category. … Typically, large companies are well-established and highly resourced, meaning that stock market volatility may impact some short-term strategic decisions but unlikely to matter in the long run. … Is the stock undervalued, even when its growth outlook is factored into its intrinsic value?
Simply Wall St - – Full articleIs Facebook Inc's (NASDAQ:FB) 23.01% ROE Strong Compared To Its Industry?
See our latest analysis for Facebook Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs Facebook’s profit against the level of its shareholders’ equity. … ROE can be split up into three useful ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:FB Last Perf May 24th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.
Simply Wall St - – Full articleIs It Time To Buy Facebook Inc (NASDAQ:FB)?
The stock is currently trading at US$182.66 on the share market, which means it is overvalued by 56% compared to my intrinsic value of $116.96. … This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … If you believe FB should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.
Simply Wall St - – Full articleDoes Facebook Inc's (NASDAQ:FB) Recent Track Record Look Strong?
Below, I will run you through a simple sense check to build perspective on how Facebook is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its internet industry peers. … Check out our latest analysis for Facebook How FB fared against its long-term earnings performance and its industry I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … Eyeballing growth from a sector-level, the US internet industry has been growing its average earnings by double-digit 16.91% in the previous twelve months, and 18.02% over the previous five years.
Simply Wall St - – Full articleIs It Too Late To Buy Facebook Inc (NASDAQ:FB) At Its April Price?
Facebook Inc (NASDAQ:FB) closed yesterday at $159.69, which left some investors asking whether the high earnings potential can still be justified at this price. … FB is trading at price-to-earnings (PE) ratio of 29.1x, which suggests that Facebook is overvalued based on current earnings compared to the internet industry average of 27.76x , and overvalued compared to the US market average ratio of 18.28x. … NasdaqGS:FB PE PEG Gauge Apr 25th 18 After looking at FB's value based on current earnings, we can see it seems overvalued relative to other companies in the industry.
Simply Wall St - – Full articleWhat Is Driving Facebook Inc's (NASDAQ:FB) Margins In The Future?
Margin Calculation for FB Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 15.92 Billion ÷ 40.65 Billion = 39.16% Facebook's margin has expanded in the past five years, due to 53.11% in average net income growth surpassing a 37.07% average growth in revenue, indicating that that the previous revenue growth has been acompanied by a growing portion translated in to earnings. … Using Facebook's margin expectations as a way to understand projections for the future It is expected that margins will shift towards greater stability, with an expectation of 19.10% in annual revenue growth and a forecasted 18.62% in annual net income growth. … This suggests future earnings growth is driven further by sound cost management alongside revenue increases, which is maintaining the incremental amount of net income that is retained from the forecasted revenue growth.
Simply Wall St - – Full articleCompany Info
Map
Description
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its products include Facebook Website and mobile application that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing visual stories through photos, videos, and direct messages; Messenger, a messaging application to communicate with other people, groups, and businesses across various platforms and devices; and WhatsApp, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allows people to enter an immersive and an interactive environment to train, learn, play games, consume content, and connect with others. As of December 31, 2017, it had approximately 1.40 billion daily active users. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
Details
| Name: | Facebook, Inc. |
| FB | |
| Exchange: | NasdaqGS |
| Founded: | 2004 |
| $416,584,252,235 | |
| 2,873,787,612 | |
| Website: | http://www.facebook.com |
| Address: |
Facebook, Inc. 1601 Willow Road, Menlo Park, California, 94025, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | FB | Class A Common Stock | Nasdaq Global Select | US | USD | 18. May 2012 | |
| DB | FB2A | Class A Common Stock | Deutsche Boerse AG | DE | EUR | 18. May 2012 | |
| XTRA | FB2A | Class A Common Stock | XETRA Trading Platform | DE | EUR | 18. May 2012 | |
| LSE | 0QZI | Class A Common Stock | London Stock Exchange | GB | USD | 18. May 2012 | |
| SWX | FB | Class A Common Stock | SIX Swiss Exchange | CH | CHF | 18. May 2012 | |
| BIT | FB | Class A Common Stock | Borsa Italiana | IT | EUR | 18. May 2012 | |
| WBAG | FB | Class A Common Stock | Wiener Boerse AG | AT | EUR | 18. May 2012 | |
| SNSE | FB | Class A Common Stock | Santiago Stock Exchange | CL | USD | 18. May 2012 | |
| BVC | FB | Class A Common Stock | Bolsa de Valores de Colombia | CO | COP | 18. May 2012 | |
| BMV | FB * | Class A Common Stock | Bolsa Mexicana de Valores | MX | MXN | 18. May 2012 | |
| BVL | FB | Class A Common Stock | Bolsa de Valores de Lima | PE | USD | 18. May 2012 | |
| BOVESPA | FBOK34 | BDR EA REPR 1/2 COM USD0.000006 CL 'A' | Bolsa de Valores de Sao Paulo | BR | BRL | 10. Mar 2014 |
Number of employees
Current staff
Industry
| Interactive Media and Services | |
| Media |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/11/11 21:30 |
| End of day share price update: | 2018/11/09 00:00 |
| Last estimates confirmation: | 2018/11/05 |
| Last earnings filing: | 2018/10/31 |
| Last earnings reported: | 2018/09/30 |
| Last annual earnings reported: | 2017/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
