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Facebook PE Ratio

: 24.06 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2021-10-15), Facebook's share price is $324.76. Facebook's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $13.50. Therefore, Facebook's PE Ratio for today is 24.06.

Good Sign:

Facebook Inc stock PE Ratio (=24.34) is close to 1-year low of 22.61


The historical rank and industry rank for Facebook's PE Ratio or its related term are showing as below:

NAS:FB' s PE Ratio Range Over the Past 10 Years
Min: 16.51   Med: 36.78   Max: 1415.5
Current: 24.07

16.51
1415.5

During the past 11 years, the highest PE Ratio of Facebook was 1415.50. The lowest was 16.51. And the median was 36.78.


NAS:FB's PE Ratio is ranked lower than
99.99% of the 43 Companies
in the Interactive Media industry.

( Industry Median: 30.20 vs. NAS:FB: 24.07 )

Facebook's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $3.61. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $13.50.

As of today (2021-10-15), Facebook's share price is $324.76. Facebook's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $13.50. Therefore, Facebook's PE Ratio without NRI for today is 24.06.

During the past 11 years, Facebook's highest PE Ratio without NRI was 1586.00. The lowest was 16.51. And the median was 37.77.

Facebook's EPS without NRI for the three months ended in Jun. 2021 was $3.61. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $13.50.

During the past 12 months, Facebook's average EPS without NRI Growth Rate was 64.80% per year. During the past 3 years, the average EPS without NRI Growth Rate was 23.20% per year. During the past 5 years, the average EPS without NRI Growth Rate was 42.80% per year. During the past 10 years, the average EPS without NRI Growth Rate was 63.60% per year.

During the past 11 years, Facebook's highest 3-Year average EPS without NRI Growth Rate was 405.30% per year. The lowest was 22.60% per year. And the median was 53.30% per year.

Facebook's EPS (Basic) for the three months ended in Jun. 2021 was $3.67. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2021 was $13.70.


Facebook PE Ratio Historical Data

The historical data trend for Facebook's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Facebook Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.97 32.74 17.32 31.92 27.07

Facebook Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.73 29.83 27.07 25.20 25.76

Competitive Comparison

For the Internet Content & Information subindustry, Facebook's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Facebook PE Ratio Distribution

For the Interactive Media industry and Communication Services sector, Facebook's PE Ratio distribution charts can be found below:

* The bar in red indicates where Facebook's PE Ratio falls into.



Facebook PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Facebook's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=324.76/13.500
=24.06

Facebook's Share Price of today is $324.76.
Facebook's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $13.50.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Facebook  (NAS:FB) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Facebook PE Ratio Related Terms

Thank you for viewing the detailed overview of Facebook's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Facebook Business Description

Facebook logo
Industry
Address
1601 Willow Road, Menlo Park, CA, USA, 94025
Facebook is the world's largest online social network, with 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Facebook refers to this as Facebook Watch. The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm's total revenue, with 50% coming from the U.S. and Canada and 25% from Europe. With gross margins above 80%, Facebook operates at a 30%-plus margin.
Executives
Newstead Jennifer officer: VP and General Counsel C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Fischer David B. officer: Chief Revenue Officer C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Wehner David M. officer: Chief Financial Officer C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Taylor Susan J.s. officer: Chief Accounting Officer C/O LINKEDIN CORPORATION 2029 STIERLIN COURT MOUNTAIN VIEW CA 94043
Kimmitt Robert M director C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Travis Tracey Thomas director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: TRAVIS TRACEY THOMAS a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Sandberg Sheryl director, officer: Chief Operating Officer 1 FACEBOOK WAY MENLO PARK CA 94025
Killefer Nancy director 3170 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Houston Andrew director 333 BRANNAN STREET SAN FRANCISCO CA 94107
Schroepfer Michael Todd officer: Chief Technology Officer C/O FACEBOOK INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Cox Christopher K officer: Chief Product Officer C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Andreessen Marc L director C/O ARNOLD & PORTER LLP 3 EMBARCADERO CENTER 7TH FLOOR SAN FRANCISCO CA 94111
Alford Peggy director 435 TASSO STREET PALO ALTO CA 94301
Thiel Peter director 9200 SUNSET BOULEVARD SUITE 1110 WEST HOLLYWOOD CA 90069
Zients Jeffrey D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ZIENTS JEFFREY D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

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