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Facebook

Nasdaq:FB
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FB
Nasdaq
$608B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. The last earnings update was 113 days ago. More info.


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FB Share Price and Events
Price Volatility
FB
Industry
5yr Volatility vs Market
Related Companies

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Facebook.

NasdaqGS:FB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 41 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.5%
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.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:FB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Internet Unlevered Beta Simply Wall St/ S&P Global 1.21
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.211 (1 + (1- 21%) (0%))
1.211
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.211 * 7.05%)
11.49%

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.

NasdaqGS:FB DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 16,146.63 20,180.71 27,343.02 33,669.33 41,922.40
Source Analyst x16 Analyst x15 Analyst x16 Analyst x7 Analyst x6
Present Value
Discounted (@ 11.49%)
14,482.51 16,235.30 19,730.23 21,791.25 24,336.36
Present value of next 5 years cash flows $96,576
NasdaqGS:FB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $41,922 × (1 + 2.95%) ÷ (11.49% – 2.95%)
$505,343
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $505,343 ÷ (1 + 11.49%)5
$293,356
NasdaqGS:FB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $96,576 + $293,356
$389,932
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $389,932 / 2,895
$134.71
NasdaqGS:FB Discount to Share Price
Calculation Result
Value per share (USD) From above. $134.71
Current discount Discount to share price of $209.94
= -1 x ($209.94 - $134.71) / $134.71
-55.8%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NasdaqGS:FB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $6.14
NasdaqGS:FB Share Price ** NasdaqGS (2018-07-20) in USD $209.94
United States of America Internet Industry PE Ratio Median Figure of 120 Publicly-Listed Internet Companies 30.95x
United States of America Market PE Ratio Median Figure of 7,819 Publicly-Listed Companies 18.37x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Facebook.

NasdaqGS:FB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:FB Share Price ÷ EPS (both in USD)

= 209.94 ÷ 6.14

34.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Facebook is overvalued based on earnings compared to the US Internet 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?
Raw Data
NasdaqGS:FB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 41 Analysts
18.9%per year
United States of America Internet Industry PEG Ratio Median Figure of 86 Publicly-Listed Internet Companies 1.97x
United States of America Market PEG Ratio Median Figure of 5,913 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

NasdaqGS:FB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.17x ÷ 18.9%

1.81x

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?
Raw Data
NasdaqGS:FB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $26.75
NasdaqGS:FB Share Price * NasdaqGS (2018-07-20) in USD $209.94
United States of America Internet Industry PB Ratio Median Figure of 340 Publicly-Listed Internet Companies 3.62x
United States of America Market PB Ratio Median Figure of 13,249 Publicly-Listed Companies 1.73x
NasdaqGS:FB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:FB Share Price ÷ Book Value per Share (both in USD)

= 209.94 ÷ 26.75

7.85x

* 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 Internet industry average.
X
Value checks
We assess Facebook's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Internet industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Internet industry average (and greater than 0)? (1 check)
  5. Facebook has a total score of 0/6, 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 41 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!
Annual Growth Rate
18.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Facebook expected to grow at an attractive rate?
  • Facebook's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Facebook's earnings growth is expected to exceed 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
Raw Data
NasdaqGS:FB Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:FB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 41 Analysts 18.9%
NasdaqGS:FB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 41 Analysts 19.3%
United States of America Internet Industry Earnings Growth Rate Market Cap Weighted Average 20.6%
United States of America Internet Industry Revenue Growth Rate Market Cap Weighted Average 17.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*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
Raw Data
NasdaqGS:FB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 41 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:FB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 119,011 71,132 47,145 12
2021-12-31 103,459 60,191 39,361 13
2020-12-31 89,222 48,073 32,881 29
2019-12-31 72,845 38,573 27,313 39
2018-12-31 56,937 31,215 22,685 41
NasdaqGS:FB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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 15,213
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
2015-09-30 15,938 7,355 2,811
2015-06-30 14,640 6,411 2,722

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Facebook's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).
  • Facebook's revenue is expected to grow by 19.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:FB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 41 Analyst Estimates (S&P Global) See Below

All data from Facebook Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 15.28 18.80 10.27 8.00
2021-12-31 12.87 15.27 9.65 9.00
2020-12-31 10.98 14.25 8.82 28.00
2019-12-31 9.23 11.03 7.75 38.00
2018-12-31 7.67 8.54 7.12 39.00
NasdaqGS:FB Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-09-30 1.01
2015-06-30 1.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Facebook is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Facebook's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Facebook has a total score of 4/6, 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
Below we compare Facebook's growth in the last year to its industry (Internet).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Facebook has delivered over 20% year on year earnings growth in the past 5 years.
  • Facebook's 1-year earnings growth exceeds its 5-year average (55% vs 51.5%)
  • Facebook's earnings growth has exceeded the US Internet industry average in the past year (55% vs 17.6%).
Earnings and Revenue History
Facebook's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Facebook Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
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 15,213.00 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 Internet 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).
X
Past performance checks
We assess Facebook's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Internet industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Facebook has a total score of 6/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Facebook's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Facebook has no debt, it does not need to be covered by short term assets.
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.
Raw Data

All data from Facebook Company Filings, last reported 3 months ago.

NasdaqGS:FB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 77,620.00 0.00 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 has no debt.
  • Facebook has no debt compared to 5 years ago when it was 19.1%.
  • Facebook has no debt, it does not need to be covered by operating cash flow.
  • Facebook has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Facebook's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Facebook has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from Facebook dividends.
If you bought $2,000 of Facebook shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NasdaqGS:FB Annualized Past and Future Dividends
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 41 Analyst Estimates (S&P Global) See Below
United States of America Internet Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 0.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5868 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:FB Future Dividends Estimate Data
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.
Current Payout to shareholders
What portion of Facebook's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Facebook has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Facebook's dividends in 3 years as they are not expected to pay a notable for United States of America.
X
Income/ dividend checks
We assess Facebook's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Facebook's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Zuckerberg, image provided by Google.
Mark Zuckerberg
COMPENSATION $8,852,366
AGE 34
TENURE AS CEO 14 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 compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Facebook management team in years:

5
Average Tenure
48.5
Average Age
  • The average tenure for the Facebook management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mark Zuckerberg

TITLE
Founder
COMPENSATION
$9M
AGE
34
TENURE
14 yrs

Dave Wehner

TITLE
Chief Financial Officer
COMPENSATION
$22M
AGE
49
TENURE
4.1 yrs

Sheryl Sandberg

TITLE
COO & Director
COMPENSATION
$25M
AGE
49
TENURE
10.3 yrs

Mike Schroepfer

TITLE
Chief Technology Officer
COMPENSATION
$22M
AGE
43
TENURE
5.3 yrs

Chris Cox

TITLE
Chief Product Officer
COMPENSATION
$22M
AGE
35

Susan Jannifer Taylor

TITLE
Chief Accounting Officer
AGE
49
TENURE
1.3 yrs

Atish Banerjea

TITLE
Chief Information Officer
AGE
52
TENURE
1.7 yrs

Deborah Crawford

TITLE
Vice President of Investor Relations
TENURE
3.9 yrs

Colin Stretch

TITLE
VP & General Counsel
AGE
48
TENURE
5 yrs

Amin Zoufonoun

TITLE
Vice President of Corporate Development
TENURE
7.3 yrs
Board of Directors Tenure

Average tenure and age of the Facebook board of directors in years:

6.5
Average Tenure
51
Average Age
  • The tenure for the Facebook board of directors is about average.
Board of Directors

Mark Zuckerberg

TITLE
Founder
COMPENSATION
$9M
AGE
34
TENURE
6.5 yrs

Sheryl Sandberg

TITLE
COO & Director
COMPENSATION
$25M
AGE
49
TENURE
6.1 yrs

Wilmot Hastings

TITLE
Director
COMPENSATION
$349K
AGE
58
TENURE
7.1 yrs

Erskine Bowles

TITLE
Director
COMPENSATION
$399K
AGE
73
TENURE
6.8 yrs

Sue Desmond-Hellmann

TITLE
Lead Independent Director
COMPENSATION
$369K
AGE
61
TENURE
3.1 yrs

Peter Thiel

TITLE
Director
COMPENSATION
$349K
AGE
51
TENURE
13.3 yrs

Marc Andreessen

TITLE
Director
COMPENSATION
$369K
AGE
47
TENURE
10.1 yrs

Ken Chenault

TITLE
Director
AGE
66
TENURE
0.4 yrs

Jeff Zients

TITLE
Director
AGE
51
TENURE
0.2 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Facebook's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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
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Simply Wall St News

Facebook 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 -

Have 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 -

Stocks 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 -

Is 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 -

Is 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 -

Does 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 -

Is 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 -

What 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 -

Is Analysts' Sentiment For Facebook Inc's (NASDAQ:FB) Justified?

NasdaqGS:FB Future Profit Apr 9th 18 The company is growing incredibly fast, with a year-on-year revenue growth of 47.09% over the past financial year , and a bottom line growth of 56.26%. … With zero-debt on its balance sheet, FB doesn't have to worry about maintaining a high level of cash to meet debt obligations and paying near-term interest costs. … At 2.91 billion shares, that's a US$456.67B market cap - which is too high, even for a company that has a 5-year cumulative average growth rate (CAGR) of 38.40% (source: analyst consensus).

Simply Wall St -

Does Facebook Inc's (NASDAQ:FB) PE Ratio Signal A Selling Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for FB Price per share = $159.39 Earnings per share = $5.488 ∴ Price-Earnings Ratio = $159.39 ÷ $5.488 = 29x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared riskier firms with FB, then investors would naturally value FB at a higher price since it is a less risky investment. … If this assumption does not hold true, FB’s higher P/E ratio may be because firms in our peer group are being undervalued by the market.

Simply Wall St -

Company 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
$607,698,149,415
2,894,627,748
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
Staff numbers
27,742
Facebook employees.
Industry
Internet Software and Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/22 21:32
End of day share price update: 2018/07/20 00:00
Last estimates confirmation: 2018/07/20
Last earnings update: 2018/03/31
Last annual earnings update: 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.