Valuing a company has some simple rules.
Turnover
Profit.
Costs.
Acquisitions.
Personnel.
Property.
Past growth.
Forecast future growth.
Market place.
Standing in the market.
Past market.
Forecast market.
So to take these guides and arrive at a figure of $100 billion on a company that can't make a $billion in profit is dreaming.
http://www.forbes.com/sites/ericsavi...than-facebook/
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Anyway, Let?s say that Facebook can get membership from 850 million to 2 billion ? a quarter of the Earth?s population. And let?s say the company can roughly triple its annual revenue per subscriber from last year?s $4.39 to $12 per user per year ? a buck a month from a recent 37 cents. That would mean revenue of $24 billion, which would be an impressive total indeed. And let?s say that the company can hang on to last year?s level of profitability ? 27% net margins ? which would mean profits of $6.5 billion. At that level, at a $200 billion market cap, you would still be paying a not insignificant 30x earnings. And reaching those theoretical levels is likely years away.
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This is based on the most ridiculous of "can" and "if" possible. Because we all know there, no way the penetration will continue at this rate in "The Western World". Look at the level of earning of 3/4 of the Earth's population. And still it's not worth the figures quoted. I would rather bet on AFF shares.
Yes I know. It was a joke.