Aug
20
Facebook Numbers, from Charles Pennington
August 20, 2012 |
FB premiered in Value Line recently, and here are the round numbers, as I understand them:
Market cap: $40 billion
"Working Capital": $12 billion
I think the "working capital" is mostly cash, but I'm not sure. It went from $3 billion last year to $12 billion this year, so it sounds like cash from the IPO.
Enterprise value around $30 billion.
They had revenues of $5 billion and "operating margins" of about 30%, so it sounds like they would have earned $1.5 billion pre-tax, but instead they earned roughly zero because they had >$1 billion in "variable compensation costs" for their 3,000 employees. I.e. it sounds like employees got bonuses of >$300K, on average. I'm not sure why "variable compensation costs" are not consider a cost of "operating" when calculating "operating margin".
Value Line says their revenues will be about $13 billion by 2015-2017, and the operating margin will be 50%. That sounds like there will be $6 billion of profits pre-tax on this enterprise value of $30 billion, but again, will the "variable compensation costs" chew that up?
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