March 4, 2012
Now that we have the most of the inputs in place, we enter into the â€œValuationâ€ part of the model. We need to perform Facebook Valuation using DCF i.e cash flow method to see the worth the Facebook is!
Todayâ€™s exercise is to find the value of Facebookâ€™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.
I have for you a simple template to do the valuation using DCF of Facebookâ€™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!!!
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 Facebookâ€™s worth on our own.
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!!