Facebook Inc Earnings Model (Saechao)
Author: Chris Saechao, Published: July 27, 2020 7:40pm, Category: Earnings Preview (Prior to the 2Q2019 earnings release)
Summary of Model: This model uses Monthly Active People (MAP) growth rates and Average Revenue Per Person (ARPP) to project future revenue, and ratio analysis to complete the income statement. A multiples valuation was used to determine Facebooks 12-month target price. The models FY2020, and FY2021 are calibrated to consensus estimates with quarterly deviations based on my view of macroeconomic business conditions.
Author's Disclosure of Potential Conflicts of Interest: I am long FB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.