Is my math wrong. FB only worth 1.65 a share?

noob_trad3r · Nov 14, 2012

The number sounds ridiculous but if I multiply the average tech P/E of 15 x .11 I get only 1.65

.11 is what the EPS is for FB.

That sounds extreme, am I missing something here?

zdreg · Nov 14, 2012

Quote from noob_trad3r:

The number sounds ridiculous but if I multiply the average tech P/E of 15 x .11 I get only 1.65

.11 is what the EPS is for FB.

That sounds extreme, am I missing something here?

if earnings are negative perhaps they should pay you to buy the stock.

doublet83 · Nov 14, 2012

Quote from noob_trad3r:

The number sounds ridiculous but if I multiply the average tech P/E of 15 x .11 I get only 1.65

.11 is what the EPS is for FB.

That sounds extreme, am I missing something here?

Stay away from fundamental analysis before you hurt yourself.

tracer619 · Nov 14, 2012

remember earlier this year in January when GRPN was $25/share?

yesterday it closed at 2.65
the same thing could happen to FB

not 'could' better to say 'probably will'.....

noob_trad3r · Nov 14, 2012

Quote from doublet83:

Stay away from fundamental analysis before you hurt yourself.

So where am I wrong? You don't seem to have the answer. So you don't seem to know.

doublet83 · Nov 14, 2012

Quote from noob_trad3r:

So where am I wrong? You don't seem to have the answer. So you don't seem to know.

I'll give you a hint. Your numbers are way off and that no real investors use an EPS number from yahoo finance or where ever you're getting it.

MilkDrink · Nov 14, 2012

15 p/es are for earning growth rates around 5-10% annual
if facebook grows at 20% (and reality DOES) , pe should be around 25-30

earnings from yahoo is fine, just average it out with a few quarters so you don't get random lumps

atticus · Nov 14, 2012

Quote from noob_trad3r:

The number sounds ridiculous but if I multiply the average tech P/E of 15 x .11 I get only 1.65

.11 is what the EPS is for FB.

That sounds extreme, am I missing something here?

It's wrong. Ask Peil as he's run an exhaustive cash flow and comp-intel analysis of facepalm. It's going to be trading under $10 this week, but not quite to $1.65, so says the Oracle of Arkansas.