Revenue CAGR = 35%EBITDA CAGR = 34%Taxes 41% trending to 30% in 2020CapEx trending down from 16.3% to 12% in 2015Depreciation 8.7% trending to 12% in 2020
Post-offering, we anticipate approximately 2.45 billion diluted shares outstanding
Here’s why we believe a WACC of 10%-14% is reasonable: the comps suggest a WACC of 10% our forecast is based on a simple assumption: FB will track GOOG in its ability to monetize users we have shown ample evidence for why we believe this to be true if we are right on the money, a CAGR of 10%-14% can be expected. upside is presented where FB’s monetization engine outpaces our forecast. recall the $/MAU, where we show FB generates $34 per MAU in 2020 compared with GOOG’s $45 today. recall the evidence we provided to suggest that FB’s SoMoLoCo power will be unlike anything we’ve ever seen.We believe there is upside to our valuation
Comparing GOOG’s operating statistics as of its IPO date with FB’s current statistics and our valuation target.
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