See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$16,366.55||$20,802.67||$27,572.26||$34,195.05||$41,680.94|
|Source||Analyst x15||Analyst x14||Analyst x10||Analyst x8||Analyst x8|
Discounted (@ 11.5%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $41,681 × (1 + 2.47%) ÷ (11.5% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$372,149 = $97,617 + $274,532
Value = Total value / Shares Outstanding ($372,149 / 2,905)Discount to Share Price
Value per share:
Current discount (share price of $183.29): -43.08%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 11.5% = 2.47% + (1.199 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($519,966,085,674).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.199 = 1.199 (1 + (1- 40%) (0%))
Levered Beta used in calculation = 1.199
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.
Average tenure and age of the Facebook management team in years:
Average tenure and age of the Facebook board of directors in years:
Below is a brief commentary on my key takeaways on how market analysts view Facebook's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … This growth seems to continue into the following year with rates reaching double digit 64.75% compared to today’s earnings, and finally hitting US$32.11B by 2021. … The slope of this line is the rate of earnings growth, which in this case is 18.64%.Simply Wall St - – Full article
In Facebook's case, they have no debt on the books, which eliminates short-term debt pressures highly-levered companies may face. … Take a look at our free research report of analyst consensus for FB’s outlook. … Is the stock undervalued, even when its growth outlook is factored into its intrinsic value.Simply Wall St - – Full article
The stock is currently trading at $187.12 on the share market, which means it is overvalued by 46% compared to my intrinsic value of $128.33. … 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. … Facebook’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.Simply Wall St - – Full article
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … This suggests that, on average, Facebook has been able to gradually grow its earnings over the past couple of years as well. … Scanning growth from a sector-level, the US internet industry has been growing its average earnings by double-digit 14.43% over the past year, and 19.38% over the previous five years.Simply Wall St - – Full article
This tells us that Facebook is overvalued compared to the US market average ratio of 19.9x , and overvalued based on current earnings compared to the internet industry average of 23.69x. … After looking at FB's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … Based on Facebook's predicted 22.50% growth in earnings next year and PE ratio of 33.93x we see that Facebook has a higher PEG ratio of 1.84x.Simply Wall St - – Full article
See our latest analysis for Facebook Is FB’s debt level acceptable? … For FB, the debt-to-equity ratio is zero, meaning that the company has no debt. … Given zero long-term debt on its balance sheet, Facebook has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations.Simply Wall St - – Full article
Knowing the portion of top line revenue that is turned into net income helps to assess this ability whilst spotting profit drivers, and can be found by calculating FB's profit margin. … Margin Calculation for FB Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 15.21 Billion ÷ 36.49 Billion = 41.69% There has been an expansion in Facebook's margin over the past five years, as a result of 54.80% in average net income growth exceeding a 37.38% average growth in revenue, which suggests that the company has been able to convert a larger percentage of revenue into net income whilst grow their top line at the same time. … Thus, it is essential to run your own analysis on Facebook's future earnings whilst keeping a watchful eye over their ability to maintain cost efficiency and top line growth as these are the factors driving future earnings growth according to our preliminary margin analysis.Simply Wall St - – Full article
It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for FB Price per share = $180.82 Earnings per share = $5.257 ∴ Price-Earnings Ratio = $180.82 ÷ $5.257 = 34.4x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … Ultimately, our goal is to compare the stock’s P/E ratio to the average of companies that have similar attributes to FB, such as company lifetime and products sold.Simply Wall St - – Full article
Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of FB’s equity capital deployed. … Given a positive discrepancy of 12.55% between return and cost, this indicates that FB pays less for its capital than what it generates in return, which is a sign of capital efficiency. … 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 Dec 1st 17 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.Simply Wall St - – Full article
Basically, it is a financially-healthy company with a strong track record and an optimistic growth outlook. … The strong earnings growth is reflected in impressive double-digit 24.31% return to shareholders, which is an optimistic signal for the future. … Dividend Income vs Capital Gains: Does FB return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends.Simply Wall St - – Full article
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.
1601 Willow Road,
|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|
|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|
|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|
|Internet Software and Services|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/14|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
All dates 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.