Sunday, April 1, 2012

Facebook Valuation

                                                                               Data source - Wall Street Journal

 Facebook isn't even public yet, but its highly anticipated initial public offering (IPO) has created a lot of buzz. Is the company a worthy investment though? Today's chart of the day shows that, according to a few productivity metrics, Facebook has convincingly blown past many other companies in the US$ 100 bn club. Each of this social networking site's 3,200 employees generates Rs 1.2 million in revenues and over US$ 300,000 in profits. This compares very favourably versus other players which have a similar market cap, but lower productivity. But, while financial metrics look rosy, at the current inflated valuations, the  Facebook IPO may not have much left on the table for investors.

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