On Friday 18 May, Facebook will launch of its initial public offering (IPO) on the NASDAQ Stock Exchange, with symbol -FB. It will float 337 million shares with pre IPO price of US$38.
For Australians, FB's CDFs can be traded via CMC Markets.
There are mixed opinions on the valuation of FB. Here are a few number facts about FB, according to its IPO Prospectus:
- most widely used social networking site on the internet
- more than 845 million members
- approximately 483 million of these log into Facebook every day.
- annual revenue in 2011 was US$3.7 billion
- operating income of US$1.8 billion.
- profit in 2011 was US$1 billion.
- price for whole company, assuming IPO price, is over $104 biliion
- A simple P/E using IPO_price / Profit is roughly 100:1 - implying that the profitably can increase so much more in future. Do you believe that?
As a comparison with other high-flying, media grabbing IPOs, here are some stats about the opening price.
IPO Close Close/IPO
Google $85.00 $100.33 18%
Baidu $27.00 $122.50 354%
Groupon $20.00 $26.11 354%
Linkedin $45.00 $94.25 109%
Posts
No comments:
Post a Comment