With Zuckerberg turns 28 yesterday, a big gift for him yet to come – Yes, I am talking about his company Facebook initial public offering, but what makes the birthday more special to him, according to CNBC, Facebook is to refile its S-1 documentation for IPO tomorrow at a range of $34-$38 per share, which means its valuation would be between $92 billion to $103 billion.
The company has set an IPO price of $28 to $35 a share, valuing the company by as much as $96 billion. When it goes public, Facebook will trade on the Nasdaq under the symbol “FB.” Calculating some wonderful facts, at $35 per share price, Facebook would be valued at 70 times its projected 2012 earnings of 50 cents a share, and 18 times its estimated revenue of $5 billion.
By comparison, Google trades at $610 a share, but trades at less than 15 times its 2012 profit estimate and six times its revenue. Even if Facebook’s $35 stock price looks like a bargain next to Google’s $610 price, it could still be overvalued relative to its financial potential. Well, as I said earlier to, we have to expect a lot more coming from Facebook side, so stay tuned with us.
(More) BREAKING NEWS: New range values Facebook from $92B to $103B – Source (via @KateKellyCNBC)
— CNBC (@CNBC) May 14, 2012
BREAKING NEWS: Facebook revising range to $34-$38; expected to refile with with new range tomorrow – Source (via @KateKellyCNBC)
— CNBC (@CNBC) May 14, 2012
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