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

Discussion in 'Stocks' started by noob_trad3r, Nov 14, 2012.

  1. 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?
  2. zdreg


    if earnings are negative perhaps they should pay you to buy the stock.
  3. Stay away from fundamental analysis before you hurt yourself.
  4. 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'.....
  5. So where am I wrong? You don't seem to have the answer. So you don't seem to know.
  6. 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.
  7. 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
  8. 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.