Facebook is currently valued at 1.06 trillion USD.
I would say Facebook Inc is still undervalued. Facebook market capitalization could reach 1.7 trillion USD and then I would say Facebook would be fully valued for the next 5 to 7 years. My estimation is influenced by the constantly and briskly growing market for online advertising.
The online advertising market, however, will soon reach a saturation point. The whole market for advertising is 649.22 billion USD in annual revenue. Online advertising is constantly gaining at the expense of television and newspaper advertisements.
Advertising, however is a mature industry so it is growing with 5 % and is likely in the long run to grow with the pace of the global population growth.
A huge advantage of Facebook Inc is that the social network is extremely profitable unlike its competitors Snapchat and Pinterest, for example.
The stock market rewards handsomely profitable companies by assigning them high Price/Earnings and Price/Sales multiples. The stock market also likes growth. And Facebook has both high growth and very high profitability at the moment.
So I estimate Facebook's intrinsic value is 1.7 trillion USD.
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