SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Spekulatius who wrote (61730)2/18/2019 7:50:13 PM
From: Graham Osborn3 Recommendations

Recommended By
E_K_S
Lance Bredvold
research1234

  Read Replies (1) of 78715
 
As with a lot of tech companies, the PE of Facebook is pretty deceiving. Free cash flow for last year was around 15B and 17B the year prior. Enterprise value is currently about 424B. But when you deduct stock-based compensation of 4B a year from the preceding numbers, you get 11B and 13B, which pegs the company at about 38X last year's owner earnings. That's more consistent with the other rich multiples: EV/ Rev 8X, P/ TB 7X.

By the same method, Google's enterprise value is about 673B and their 2018 free cash flow adjusted for SBC is 21B-9B = 12B. So the company sells for about 56X owner earnings.

Employees of these companies are getting well paid, but investors are not. I'd rather let someone else subsidize all this nonsense:

thisisinsider.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News