Facebook Inc ($FB) Possible Buy to $111 Confident Investor Rating: Good
| 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) | $137.5 |
| Target stock price (averages with growth) | $151.73 |
| Target stock price (averages with no growth) | $68.59 |
| Target stock price (manual assumptions) | $136.51 |
The following company description is from Google Finance: http://www.google.com/finance?q=fb
Facebook, Inc. is a social networking company. The Company is engaged in developing products that enables users to connect and share through mobile devices and personal computers. It offers various services focused on people, marketers and developers. It offers various platforms for people to share their opinions, ideas, photos and videos, and to engage in other activities. Its products include Facebook, Instagram, Messenger and WhatsApp. The Facebook mobile app and Website enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. Its Messenger is a mobile-to-mobile messaging application available on iOS and Android phones. Instagram is a mobile application and Website that enables people to take photos or videos, and share them with friends and followers. WhatsApp Messenger is a cross-platform mobile messaging application and allows people to exchange messages on iOS, Android, BlackBerry, Windows Phone and Nokia devices.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Facebook Inc.
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.
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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: $89.21
- Growth: 0.2
- Current EPS (TTM): $0.95
- P/E: 93
- Future EPS Calc: $2.36
- Future Stock Price Calc: $219.84
- Target stock price: $136.5
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I hope that this makes you a Confident Investor.