New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Guru News and Commentaries
Guru News, Stock picks and commentaries
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Renowned Valuation Expert Professor Aswath Damodaran Says Facebook Is Worth Buying Now
Posted by: Dheeraj Grover (IP Logged)
Date: August 23, 2012 11:23AM

Aswath Damodaran, a professor of finance at New York University, and author of well-known value investing book, "The Little Book of Valuation" was on CNBC to discuss his views on Facebook, its business model and current valuation and his estimate of Facebook (FB)'s intrinsic value

Source: www.cnbc.com

-- Facebook is worth buying at these prices.
-- He thinks Facebook has an intrinsic value of about $24.
-- Has great potential in terms of monetizing the huge base of its members.
-- Worried about corporate governance and management's capacity and capability to pull this off and overhang of huge number of shares waiting to come to the market.
-- Facebook is surely a risky investment, but it is a good long-term bet at $18 or so.

Here is the video:



Stocks Discussed: FB,
Rate this post:

Rating: 5.0/5 (1 vote)



Re Renowned Valuation Expert Professor Aswath Damodaran Says Facebook Is Worth Buying Now
Posted by: Adib Motiwala (IP Logged)
Date: August 23, 2012 04:38PM

Given the downside risks due to over valuation, even a 33% upside ( from $18 to 24$) does not seem like enough of a risk-reward to consider this as an investment. If he thinks $24 is fair value, I would think $12 may be interesting. Need a 2x on something that has negative momentum, insider selling, slowing growth, high valuation going against it....



Stocks Discussed: FB,
Rate this post:

Rating: 0.0/5 (0 votes)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK