Ewpple Chart | Facebook Inc (FB)

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Facebook Inc (FB)

Fun Fact

1. Facebook is the 3rd most popular site in the world after to Google and YouTube.
2. People are most active on Facebook at 8 am & 10 pm.
3. Facebook is the world's largest online social network, with 2.5 billion monthly active users.
4. FB is a constituent stock of the S&P 500 & Nasdaq 100 index.

Stock Valuation (TTM 12 Months to Jun 20)

Price | USD 249.53
Market Capitalization | USD 711B vs Enterprise Value (EV) USD 663B.
Price /Earnings (PE) | 30X. Slightly expensive vs S&P average PE of 28X.
Price /Book (PB) | 6.4X. Expensive vs S&P average PB of 3.7X.
Dividend Yield (DY) | Nil. FB does not pay dividends vs average DY of S&P 1.8%.
Net Income | USD 23.5B (-16% YoY).
Net Margin | 28%. This is higher than 88% of the Interactive Media industry.
Interest Coverage | Nil. FB had no debt.

Technical Analysis

Long Term Trend | Up. The trendline is intact.
Short Term Trend | Down.
Support Line | USD 236 & next support USD 221.
Resistance Line | USD 265
Stochastic | Currently inside the oversold zone. A U-turn from the current position indicates selling momentum is weakening.

Analyst Consensus

Target Price | USD 287.87
Call | Buy

Conclusion

The valuation ratio is slightly expensive. But fundamentally strong, especially high net income /margin and zero debt. Long term investors can consider this stock.
Due to the short-term downtrend, traders should wait for a stochastic U-turn signal.