|Company name||Facebook Inc|
|Live stock price||[stckqut]FB[/stckqut]|
|P/E compared to competitors||Fair|
|Confident Investor Rating||Good|
|Target stock price (TWCA growth scenario)||$261.62|
|Target stock price (averages with growth)||$288.28|
|Target stock price (averages with no growth)||$129.85|
|Target stock price (manual assumptions)||$262.97|
The following company description is from Google Finance: http://www.google.com/finance?q=fb
Facebook, Inc. is focused on building products that enable people to connect and share through mobile devices, personal computers and other surfaces. The Company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus. Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. Instagram enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends. Messenger allows communicating with people and businesses alike across a range of platforms and devices. WhatsApp Messenger is a messaging application that is used by people around the world and is available on a range of mobile platforms. Its Oculus virtual reality technology and content platform offers products that allow people to enter an interactive environment to play games, consume content and connect with others.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Facebook Inc.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Facebook Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $169.47
- Growth: 0.2
- Current EPS (TTM): $4.6
- P/E: 37
- Future EPS Calc: $11.44
- Future Stock Price Calc: $423.51
- Target stock price: $262.96
I hope that this makes you a Confident Investor.