Social Media industry (Facebook, Twitter and Snapchat) has been taken for Financial Modelling. Basic Evaluation ratios have been taken to compare these platforms followed by some graphs.

1. FINANCIAL MODELLING
SOCIAL MEDIA INDUSTRY
SUDEEKSHA GUPTA
M17BBA017

3. • Facebook, Inc. is an American online social media and social networking service
company based in Menlo Park, California. It was founded in 2004. People use
Facebook to stay connected with friends and family, to discover what’s going on in
the world, and to share and express what matters to them.
• Twitter, Inc. is based in San Francisco, California. It was founded in 2006.It is
a microblogging and social networking service on which users post and interact
with messages known as "tweets".
• Snapchat was released in 2011. Snapchat is a camera made for communicating in
the moment! Live in the Moment: Chat with stickers, Bitmoji, and more. Snapchat
is a multimedia messaging app used globally

4. Evaluation Ratios
TWITTER FB Snapchat
No. of users 0.126 2.37 0.186
PE Ratio 14.53 31.07 -
EV/ Gross Profit 9.62 11.01 53.64
EV/Ebitda 25.9 18 -21.36
EV/Revenue 5.95 7.7 13.24
EV 20.01 512.16 20.44
As Social Media Industry is a
labor intensive industry, I
have mainly taken into
account no. of active users,
enterprise value and PE
Ratio.

5. 0
100
200
300
400
500
600
EV
Enterprise Value
TWITTER FB SnapChat

6. 0
0.5
1
1.5
2
2.5
No. of users
No. of active users (Billion)
TWITTER FB SnapChat
Social Media usage is determined by its number of active users. Facebook has about 2.37
billion users.

7. 0
5
10
15
20
25
30
35
PE Ratio
PE Ratio
TWITTER FB SnapChat
PE Ratio denotes what the market is willing to pay for a company's earnings.As Facebook
has more than double the PE ratio than twitter and 30 times that of Snapchat, it means
that investors are anticipating higher growth in the future.

8. THANKYOU