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EduPristine>Blog>Facebook Valuation using DCF

Facebook Valuation using DCF

March 4, 2012

Now that we have the most of the inputs in place, we enter into the “Valuation” part of the model. We need to perform Facebook Valuation using DCF i.e cash flow method to see the worth the Facebook is!

Today’s exercise is to find the value of Facebook’s equity by taking most of the inputs from the future financial statements of Facebook and some like beta, risk-free rate etc from other reliable sources.

Template for Facebook Valuation using DCF

Valuation using DCF

I have for you a simple template to do the valuation using DCF of Facebook’s equity. It becomes a simple exercise after looking at the template because the it is designed in such a way that it guides to place required inputs in right place to get the equity valuation of Facebook.

Download the template and try to find the worth Zuckerberg is gonna be!!!

Next Step

2moro we provide you hints on source and usage of inputs needed to perform equity valuation along with the two important free cash flow definitions used in DCF analysis. Till then go on and try to find Facebook’s worth on our own.

Enroll for the entire Facebook Valuation Program here!

Why go hunting for each individual post on our blog, when the entire Facebook Valuation Program can come right in your inbox? Yes. It’s now a simple click away, just provide your email address in the form below, and we will email you the entire 1 month program 1 article a day!!

About Author

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Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, it is one of the leading International Training providers for Finance Certifications like FRM®, CFA®, PRM®, Business Analytics, HR Analytics, Financial Modeling, and Operational Risk Modeling. EduPristine has conducted more than 500,000 man-hours of quality training in finance.

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