With the stock closing at $77.89 per share, the company is now valued at $201.6 billion, making it the 22ndlargest company in the world, ahead of Toyota Motor Corporation and just behind Verizon Communications, a Bloomberg report noted.
Facebook’s stock price has risen dramatically while its revenue, estimated at $12.2 billion in 2014, are but a fraction of more established companies. Compare this with Verizon, which has over $100 billion in 2013 sales and is a relative value. The estimated 2014 price earnings ratio for Facebook is 48, representing a high stock price relative to the stock earnings. Verizon Communications Inc. , by comparison, is estimated at just under 14. By comparison to a major tech name that has significantly diversified its revenue stream, Google Inc
Facebook’s stock price has risen dramatically while its revenue, estimated at $12.2 billion in 2014, are but a fraction of more established companies. Compare this with Verizon, which has over $100 billion in 2013 sales and is a relative value. The estimated 2014 price earnings ratio for Facebook is 48, representing a high stock price relative to the stock earnings. Verizon Communications Inc. , by comparison, is estimated at just under 14. By comparison to a major tech name that has significantly diversified its revenue stream, Google Inc
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