| Company name | Facebook Inc |
| Stock ticker | FB |
| Live stock price | [stckqut]FB[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $282.09 |
| Target stock price (averages with growth) | $415.29 |
| Target stock price (averages with no growth) | $282.09 |
| Target stock price (manual assumptions) | $284.09 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/fb
Facebook, Inc., incorporated on July 29, 2004, is focused on building products that enable people to connect and share through mobile devices, personal computers, and other surfaces. The Company also enables people to discover and learn about what is going on in the world around them, enables people to share their opinions, ideas, photos and videos, and other activities with audiences ranging from their friends to the public, and stay connected by accessing its products. The Company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus. The Company also engages in selling advertising placements to marketers. Its advertisements let marketers reach people based on a range of factors, including age, gender, location, interests, and behaviors. Marketers purchase advertisements that can appear in multiple places, including on Facebook, Instagram, and third-party applications and Websites.
Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. There are various ways to engage with people on Facebook, including News Feed, which displays an algorithmically-ranked series of stories and advertisements individualized for each person. 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 as long as the indicators that I describe in my book The Confident Investor are favorable.
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.
[s2If current_user_can(access_s2member_level1)]
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: $182.68
- Growth: 0.2
- Current EPS (TTM): $6.81
- P/E: 27
- Future EPS Calc: $16.94
- Future Stock Price Calc: $457.52
- Target stock price: $284.08
[/s2If]
I hope that this makes you a Confident Investor.