Share Facebook trading with a premium in internet sector

The American stock Facebook is currently traded with one the highest CAPE-ratios of the internet companies. Currently the share is now traded at 55 times the past 10 year's average EPS. With this the stock trades way lower than the average US stock of the internet companies which now costs 106 times the average 10-years EPS.

Core figures US internet companies

We further see that over the past year the American internet companies yielded 37 percent higher. They performed better than the European sector that yielded 37 percent higher. The American sector trades with a CAPE-ratio of 106 and the European sector trades at 106. So it seems there is a correlation with the CAPE-ratio as the risen stocks also have higher CAPE-ratios.

For this year Facebook's revenue will be around 55,36 billion USD. This is according to the average of the analysts' estimates. This is quite more than 2017's revenue of 40,65 billion USD.

Historical revenues and results Facebook plus estimates 2018

The analysts expect for 2018 a net profit of 21,69 billion USD. For this year most of the analysts expect a profit per share of 7,39 USD. The price/earnings-ratio therefore equals 18,67.

For this year analysts don't expect the company to pay a dividend. The average dividend yield of the internet companies equals a limited 0,5 percent.

Newest target prices around 155 USD

Based on the current number of outstanding shares Facebook's market capitalization is 324,73 billion USD. The Facebook stock was the past 12 months quite unstable. Since last January the stock is 26 percent lower. This year the stock price moved between 123 and 219 dollar.

Historical stock prices Facebook

On Friday the stock closed at 137,95 USD.

ValueSpectrum.com News Wire & Equity Research: +31 084-0032-842
news@valuespectrum.com

Copyright analist.nl B.V.
All rights reserved. Any redistribution, duplication or archiving prohibited. analist.nl doesn't warrant the accuracy of any News Content provided and shall not be liable for any errors, inaccuracies or for any actions taken in reliance thereon.