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Facebook Stock: Is it a good investment?. BY:LINDSAY STALL. Why is the stock attractive?. Capital gains. Price to earnings ratio. Facebook: 27.10/.39=69.31 Chevron:100.84/13.62=7.40 KEEP THE P.E. LOW Facebook revenue increase by ten-fold Historic Stock Market Average PE: 15. The Return.
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Facebook Stock: Is it a good investment? BY:LINDSAY STALL
Why is the stock attractive? • Capital gains
Price to earnings ratio • Facebook: 27.10/.39=69.31 • Chevron:100.84/13.62=7.40 • KEEP THE P.E. LOW • Facebook revenue increase by ten-fold • Historic Stock Market Average PE: 15
The Return • Earnings per share/stock price • Facebook: 0.39/27.10= 1.4% • Chevron: 13.62/100.84= 13.5% • Stock Market Average Return: 100/15=6.666
Dividends • No Facebook dividend • Chevron: 3.6% (3.60)