Facebook's latest round of financing from Goldman Sachs at a $50 billion valuation, which is about the same valuation its shares are trading on SecondMarket, clearly puts it in the pantheon of the most valuable Internet companies. At $50 billion, Facebook is now worth more than Yahoo (which has a $22 billion market cap) and eBay ($37 billion), and almost worth more than both of them combined?and that is before it has even gone public. On the valuation scale of publicly traded Internet companies, however, it is still smaller than Amazon ($83 billion) and Google ($193 billion). Facebook passed Yahoo in implied valuation last summer. And that feels about right. But is Facebook actually worth $50 billion? Its revenues for 2010 are rumored to be around $2 billion, which gives it a multiple of 25 times revenues. Google, in contrast, is trading at about 9 times estimated 2010 revenues. Of course, Facebook is growing much faster. And what really matters is profits. Facebook is believed to be profitable, but nobody really knows how profitable and there is still a sense that it hasn't quite perfected its monetization model for social ads. 
Source: http://feedproxy.google.com/~r/Techcrunch/~3/CgcrDNH3CBA/
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