Jun 4, 2017

Investing in Facebook, Trading FB

This blog post specifically looks at Facebook investment and trading. Q1 2017 quarterly data is included in the numbers and ratios below.

Before we start marveling at the tremendous growth of FB, one item that stands out is that the effective tax rate has almost halved in the last year from around 40% to 18%. That is quite a big contributing factor to the the Net Income growth.

Revenue Growth

Qtr over year ago Qtr Revenue Growth 49.2%
TTM Revenue over last year Revenue 9.6%

Profitability Trend
Latest Qtr-Qtr EPS Growth 73.3%
TTM NI growth over last year NI 13.0%
TTM Net Profit Margin% 38.0%
TTM Operating CashFlow as %sales 58.4%
TTM Operating Margin% 45.4%


Analyst Estimates
Earnings Est. Y2017 $5.09
No. surprises in prev 4Q            4
Avg. price return to 4 prev earnings results        -1.3%

Market Pricing
Latest P/E ratio 39.1
5 year Average P/E 69
Forward P/E 31.5
Latest P/S ratio 14.89
5 year Average P/S ratio 14.9

Trading Statistics
1 month volatility, annualized 16.8%
36 month volatility, annualized 17.3%
Latest Drawdown% 0%
Days under Water 0