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Old 05-31-2012, 08:14 AM
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ErikLS2 ErikLS2 is offline
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FB has a forward looking P/E ratio of around 53. For newbies that means the current share price is 53 times the forward looking earnings per share. For comparison, Apple's forward looking P/E is around 11 and Google's is about 13. This means Apple and Google stock are much cheaper than FB. FB stock would have to sell in the $6 range to have the same ratio as Apple and the $7 range to match Google. Just thought this was interesting but these are just numbers, doesn't take into account the psychology of the market.
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