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Projecting Financial Statements for Facebook

February 26, 2012
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If you remember (I am sure if you are concentrating on modeling rather than facebooking, you would atleast remember a bit), we are creating a simple model to Projecting Financial Statements for Facebook (and hence be in awe with the worth of Mark Zuckerberg! ;-))

Recap on Facebook Valuation Tutorial Course

We have already modeled:

  • The historical statements of Facebook:The P/L & B/S mostly was hardcoded, with a few derived numbers and cash flow statement was modeled using the indirect method and derived from the historical B/S and P&L
  • The Historical Drivers of Facebook: Mostly were calculated as %age of Revenue and some as year-on-year growth rate. The few balance sheet historical drivers were calculated in days and so on.
  • The Assumption of Facebook: Mostly this was modeled by taking the average of historical drivers and by using S1 and public, non-public and non-material information of the facebook.

From today onwards we start Projecting Financial Statements for Facebook using the modeled assumptions.

Projecting the Statements

Today's exercise is to start modeling the future P/L, B/S and Cash Flow Statement of FB. Once we have the projected future P/L, B/S and Cash Flow statement of Facebook. Once we have the cash, it will be easy to estimate the value that FB and Mark Zuckerberg will have!

Template for Projected Statement

I have for you a simple template to project the future financial statements for Facebook.

Download the template and try to project the future P/L, B/S and CFS of the Facebook using the assumptions modeled in the previous exercise.

Go ahead & predict how rich Zuckerberg is gonna be!!!


About the Author

Pankaj Baheti is a CFA Level III Candidate currently working with Pristine. Prior to Pristine, he was working with Achi Group. He has done his Post Graduate Diploma in Management and loves trekking in the hills of Arunachal.


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