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Fin Math Facebook IPO Evaluation




Fin Math Facebook IPO Evaluation;3. Facebook launched its initial public offering (IPO) on May 18, 2012. Suppose you were considering whether to buy some Facebook stock on that day.;a. Comparable companies include Zynga, Yelp, and Groupon. Look up their P/E ratios on Yahoo Finance or Google Finance. What?s the problem with using comparable P/E ratios to evaluate companies in this industry?;b. Look up Facebook?s dividend per share on Yahoo Finance or Google Finance. What should be its price according to the Gordon model?;c. What are some difficulties associated with using a multistage dividend growth model to evaluate the value of Facebook stock?


Paper#78298 | Written in 18-Jul-2015

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