Friday, 18 May 2012

Facebook IPO at US$38

Facebook Inc. priced its shares at $38 per share for an initial public offering that would make it the most valuable U.S. company at the time of IPO.

At $38 a share, Facebook is valued at $104 billion or about RM320 billion. This is substantially larger than Maybank, the biggest listed company in Malaysia which has a market capitalisation of about RM65 billion.

At this price, Facebook is worth as much as MAYBANK + SIME + CIMB + PCHEM + AXIATA + MAXIS

Facebook's 1Q2012 net profit was USD 205 million. Annualise the first quarter earnings, facebook is valued at three digit P/E ratio of more than 100 times...

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