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Price Per Share Fully Diluted Shares, Current Year Market Value Cash, 2020 Debt, 2020E Enterprise Value Revenue, 2021E Revenue, 2022E EBITDA, 2021E EBITDA, 2022E EPS, 2021E EPS, 2022E Non GAAP EPS, 2021E Non GAAP EPS, 2022E Equity, 2021E Equity, 2022 Non GAAP Net Income, 2021E Non GAAP Net Income, 2022E Free Cash Flow, 2021E Free Cash Flow, 2022E Facebook (FB) $ 276.95 2,879 $797,339 $65,260 $0 $732,079 $105,414 $126,750 $53,500 $66,500 $11.05 $13.68 $12.77 $15.59 $164,528 $210,617 $32,173 $39,572 $26,640 $34,972 Calculate the Implied FB Target Price Using Each Multiple (1) Apply the Selected 'Comps' Average Multiple to the FB 2022E Financial Data to calculate the Implied FB Target Price in each row. Hint: Calculate FB's 2022E Financial Data for column Ffrom the the data in column E of rows 26 to 43. Hint: Make sure you use a per share figure when asked in column F below. Implied FB Target Price 0 Selected 'Comps' Average Multiple FB 2022E Financial Data Price/Sales 4.3 Sales/Share P/E 27.4 Non-GAAP EPS EV/EBITDA 15.5 EBITDA/Share Price/Book 4.7 Book Value / Share Price / Free Cash Flow 21.3 Free Cash Flow / Share 0 0 0 0 Facebook (FB) is now trading near $277 per share (as per F26). Notice the shares are attractive relative to every metric except for Price/Sales based on the analysis in column H rows 309 to 312. What is the average of the Implied FB Target Prices? What is the discount FB is trading relative to the Average Target Price? Hint: Express this as a positive number. What is the upside potential to FB's shares if your target price is equal to the average calculated in row 102? The valuation work you performed is aimed at driving an investment decision. What is your investment recommendation based on this valuation analysis? What if we determined that Price/Sales and Price/Book are poor metrics to use to value Facebook? What is the average of the Implied FB Target Prices excluding these metrics? Price Per Share Fully Diluted Shares, Current Year Market Value Cash, 2020 Debt, 2020E Enterprise Value Revenue, 2021E Revenue, 2022E EBITDA, 2021E EBITDA, 2022E EPS, 2021E EPS, 2022E Non GAAP EPS, 2021E Non GAAP EPS, 2022E Equity, 2021E Equity, 2022 Non GAAP Net Income, 2021E Non GAAP Net Income, 2022E Free Cash Flow, 2021E Free Cash Flow, 2022E Facebook (FB) $ 276.95 2,879 $797,339 $65,260 $0 $732,079 $105,414 $126,750 $53,500 $66,500 $11.05 $13.68 $12.77 $15.59 $164,528 $210,617 $32,173 $39,572 $26,640 $34,972 Calculate the Implied FB Target Price Using Each Multiple (1) Apply the Selected 'Comps' Average Multiple to the FB 2022E Financial Data to calculate the Implied FB Target Price in each row. Hint: Calculate FB's 2022E Financial Data for column Ffrom the the data in column E of rows 26 to 43. Hint: Make sure you use a per share figure when asked in column F below. Implied FB Target Price 0 Selected 'Comps' Average Multiple FB 2022E Financial Data Price/Sales 4.3 Sales/Share P/E 27.4 Non-GAAP EPS EV/EBITDA 15.5 EBITDA/Share Price/Book 4.7 Book Value / Share Price / Free Cash Flow 21.3 Free Cash Flow / Share 0 0 0 0 Facebook (FB) is now trading near $277 per share (as per F26). Notice the shares are attractive relative to every metric except for Price/Sales based on the analysis in column H rows 309 to 312. What is the average of the Implied FB Target Prices? What is the discount FB is trading relative to the Average Target Price? Hint: Express this as a positive number. What is the upside potential to FB's shares if your target price is equal to the average calculated in row 102? The valuation work you performed is aimed at driving an investment decision. What is your investment recommendation based on this valuation analysis? What if we determined that Price/Sales and Price/Book are poor metrics to use to value Facebook? What is the average of the Implied FB Target Prices excluding these metrics

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