Facebook Valuation: how much is FB Worth? $25 Billion? $50 Billion?

What is the 'right' valuation for Facebook? Is Facebook worth $25 billion? How about $40 billion or $50 billion? What are the financial assumptions about the future that would justify these valuations? This video is from Tony Seba's Stanford class "Finance for Entrepreneurship". He walks us though 5 different ways of valuing a company and how they can be applied to Facebook. In the end he emphasizes the discounted cash flow (DCF) or intrinsic financial value method.

Category:

Education

Tags:

• Facebook Valuation
• Finance
• Entrepreneurship
• Stanford
• company valuation
• discounted cash flow
• market capitalization

[Chiszle]

I might want to look into Facebook's balance sheet. They seem like a company with consumer information, and (innovative) advertising potential. But not 25 Billion. Maybe if they took this value increase a little slower to reduce the risk of having a bubble or crash.