The folks at Financial Times have this nifty calculator that you can use to calculate the worth of the Facebook IPO and shares. It is for those that are interested in buying facebook stock.
This calculator is a basic two-step discounted cash flow model to help illustrate how variations in key assumptions can change the potential market value and share price of Facebook. It is NOT an accurate valuation tool. Rather, it should be used to gauge valuation sensitivities to important inputs. Readers are invited to change any number in a white box. Existing numbers are an example of the kind of bullish assumptions required to reach a $100bn-plus valuation and do not represent FT forecasts. Note in particular, the sensitivity to the equity risk premium and beta.
Enter your projections for Facebook’s sales growth, ebitda margin, and capex-to-sales ratio to see how these key assumptions affect the potential market value of the social networking firm’s offering. To use the facebook IPO calculator, just click here.
