Facebook Case IPO

The stock price went from $34 at the beginning of the 2010 fiscal year to $46 dollars in April largely

Share Data Price - $58.40 Date – April 14, 2003 Target Price - $60.35 52 Week Price Range - $53.00 - $67.10 Market Capitalization - $ 64.644 Billion Shares Outstanding – 1.12 Billion Revenue - $31.272

As the underwriter, Morgan Stanley (NYS:MS - News) stepped in to support Facebook 's stock when it fell toward its $38 IPO price shortly after it opened, a source familiar with the matter told Reuters. The shares spent much of

In addition, the company’s stock price was also suppressed as the cyclicality of the market and sales defrayed interest in their stock.

range of $18 to $24 for several months following the IPO. The stock price then declined

3. What was transpiring in the US IPO markets prior to Facebook’s offering? What has been

Although the company’s IPO started off very well, it didn’t keep up its pace during the first three weeks. The adjusted closing price fluctuated, mostly downwards, and within three weeks, the adjusted closing price dropped to $72.83, a reduction of 22.73% from the first day’s adjusted closing price.

The earnings per share of common stock for 2013 was $1.43 and the market price per stock as of Friday, April 25, 2014 was $26.08. The stock price 52 week high was $28.44 and the 52 week low is $20.59. However, the firm did not declare cash dividends on its common stock.

Using the book and market value is a safer way to judge value, but you shouldn’t rule out other factors. For example, the shares may be overvalued by the market because the company has just created a new product that many people think will be successful and will make the company grow more quickly in the future. Similar is true if the company is undervalued. The directors may have just sold most of their shares because they fear the company is going to fail, and the share price dropped dramatically, which makes the shares undervalued.

The entity has a market valuation of 150 million dollars (Yahoo Finance 2015). The discounted cash flow projections have been made by starting from the company’s operating cash flows which was currently at 204.65 million dollars. The company has

Google currently has stock selling for $1025.55 a share which is over thirty four times the cost of a share of Yahoo stock currently on the

Regarding 1st February 2012 Initial Public Offering, the IPO was indeed, as opposed to the expectations everyone as to be the soaring ship within the stock market, a disappointment to the investors. This was due to a myriad of factors that played within the market place: factors, which were not, to any extent, expected by the organization and all its shareholders. Plainly speaking, the offer has not performed to the expected

Debt: With the increased of investment from the industry, Facebook’ liquid assets have significantly increased on the equity account since the company went public in 2012, which lower the debt ratio each year.

Other private equity companies KKR and Blackstone Group proposed $12 - $13/ share and $14.25 /share value but backed out due to unprecedented drop in PC market.

Unfortunately, determining value can be difficult with the recent glut of hyper growth start ups. Valuing a private or public company follow similar mathematical procedures, but private companies often do not disclose key financial information. That said, the mind boggling valuations over the past 5 years are more indicative of the markets than the true value of the company itself.