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General information
Facebook, Inc. operates a social networking website. The Company website allows people to communicate with their family, friends, and coworkers. Facebook develops technologies that facilitate the sharing of information, photographs, website links, and videos. Facebook users have the ability to share and restrict information based on their own specific criteria.
  • Good financial results growth rate 17.4% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (30.1%)
  • Dividend yield for the last twelve months 0.0%
  • Free cash flow yield 1.6% (LTM)
  • Share price is 115.8% higher than minimum and 11.9% lower than maximum for the last 3 years
  • The company is overvalued by EV / LTM EBITDA multiple compared to target level (20.3x vs 20.0x)
  • Fundamental value created in LTM (estimate) 15.1%
Key Financials
Ticker: FB
Share price, USD: 267.67
Common stocks: 2 851 746 531

Dividend Yield:  0.0%
FCF Yield LTM: 1.6%
EV / LTM EBITDA: 20.3x
Last revenue growth (y/y):  10.7%
Last growth of EBITDA (y/y):  24.0%
Historical revenue growth:  32.0%
Historical growth of EBITDA:  28.2%
Target EV / EBITDA (hist 75% percentile): 20.0x
Express share price potential: 6.7%
Fundamental value created in LTM: 15.1%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 763 327
Net Debt ($m): -47 236
EV (Enterprise Value): 716 091
EBITDA LTM ($m): 35 317
EV / LTM EBITDA: 20.3x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
6 402
            EBITDA (last Q)
(2)
7 941
            EBITDA LTM
(3)
35 317
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
4.447
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
6 845
    
    
            EV
(6)
716 091
        Mult
(7)
(6) / (3)
20.3x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
15.1x
    
    
    Equity+
(10)
(5) * (9)
103 614
    FCF LTM
(11)
11 907
    
    
Value+
(12)
(10) + (11)
115 521
Cap
(13)
763 327
    
    
Fundamental value creation
(14)
(12) / (13)
15.1%

Potential

EBITDA LTM       35 317
 
EBITDA E       38 162
Mult aim       20.0x
 
EV E       763 123
NetDebt corr       -51 183
 
Cap E       814 307
Cap       763 327
Growth potential            6.7%

Website traffic (visits bln/month) facebook.com

Three months progress: -0.6%