“We believe Facebook is worth $134 billion or approximately $57.50 per share based on 2.332 billion pro forma diluted shares outstanding,” says a new e-mail blast from Arcstone Equity Research (AER):

We value Facebook using a discounted cash flow approach. We employ a 3.0x terminal revenue multiple and 8.5x terminal EBITDA multiple on 2020 forecast results. After discounts and other adjustments, we arrive at a valuation of $134 billion equity value, or approximately $57.50 per share based upon 2.332 billion pro‐forma diluted shares outstanding. This implies a forward P/E of 85x, a forward P/EBITDA of 41x, and a forward P/S of 20x.

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