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?
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'.....
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.
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
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.