Posted: 5/30/2012 10:35:57 AM
By Inyoung Hwang and Brian Womack -
May 30, 2012 9:58 AM ET
Facebook Inc. (FB)’s stock,
already lost $25 billion in value since its public debut, would
have to drop another 20 percent for its valuation to match other
companies that do business over the Internet.
Facebook, with a
market capitalization of $79.1 billion, is
trading at 29.5 times the company’s projected 2014 profit of
$2.69 billion, data compiled by
Bloomberg show. The stock would
have to dive to $23.07 to match the average price-to-earnings
ratio for the Nasdaq Internet Index based on estimated earnings
in the next 12 months, according to the data.