FacBook IPO Essay Example | Topics and Well Written Essays - 1250 words

FacBook IPO - Essay Example The main task of this paper was to calculate the so-called fair price of the company’s shares in the moment of IPO. Two different approaches are going to be used to reach the goal of the task – DCF and comparative valuation. Taking into account this goal, the paper has the following structure: introduction (brief background information about the company), theoretical concepts and methodology, financial analysis, conclusions. As it has been already mentioned, Facebook Inc. is one of the most successful companies in the modern business world. It is among the leaders not only in the IT industry, but in the global business environment, in general. The company was founded in 2004 as a website for the local Harvard community. The company has become successful quite soon. Nowadays it employs almost 2000 employees, has offices in the different countries around the whole world, and has almost 1 billion of users. Its current market capitalization is $56.8 billion. Some additional information about the company under consideration can be got from the following quote. â€Å"Facebook, Inc. operates as a social networking company worldwide. The company builds tools that enable users to connect, share, discover, and communicate with each other; enables developers to build social applications on Facebook or to integrate their Websites with Facebook; and offers products that enable advertisers and marketers to engage with its users. As of February 2, 2012, it had 845 million monthly users and 443 million daily users. The company was founded in 2004 and is headquartered in Menlo Park, California† (Facebook Inc. Company Profile). Probably the biggest question is what the factors of the company’s success are. The company has provided for people around the world an opportunity to communicate without any barriers. We believe that it is the main driver of the company’s success. Communication is among the greatest need of people and Facebook provides such