What if Facebook Traded at Apple’s Multiple?
By: Currently Facebook's forward P/E is around 53, but as shares of Facebook sink to new lows on almost a daily basis, the market is starting to question that valuation.
And that led us to wonder, where would Facebook trade if it had the same valuation as say Apple -- or as Google?
Fast breaks it down by the numbers.
Facebook Share Price
If Facebook traded at Apple’s forward P/E of 11.7 $6.30
If Facebook traded at the S&P 500’s forward P/E of 12.8 $6.90
If Facebook traded at Google’s forward P/E of 13.2 $7.15
If Facebook traded at Zynga’s forward P/E of 19.5 $10.55
If Facebook traded at LinkedIn's forward P/E of 128.2 $128.20
"Conversely if Google traded at Facebook's forward P/E of 53 it would be a $1,700 stock, at least," chuckles Karen Finerman.
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Posted by CNBC's Lee Brodie
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Trader disclosure: On May 30, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is long HPQ; Karen Finerman is long GLUU; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Pete Najarian is long AAPL CALLS; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long MS CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long PEP; Pete Najarian is long HPQ; Pete Najarian is long FB
For Brad Hintz
Brad Hintz is long CME
Brad Hintz holds an equity position in MS
The following company was a non-investment banking client of Bernstein: MS
The following company was a non-investment banking client of Bernstein: GS
CNBC.com with wires.
