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!!!