Thursday, February 2, 2012

$100 billion Facebook IPO


Facebook has filled to raise $5 billion in the IPO yesterday. The valuation is told to be between $75 and $100 billion. How this compares to the public tech companies?


Data: Google Finance, Bloomberg

As Bloomberg notes, $100B valuation is equivalent to 26.9x Facebook's SALES. Not EARNINGS. By comparison Google's current P/E is 19.51 and P/S = 4.06.

At the time of its IPO, Google's P/S ratio stood at 8.7.

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