Company Valuation

Company Valuation代写 At the time of writing this report, we made no verifications and representation as to the accuracy of such information.

 

Assumptions 

This valuation is subject to the following assumptions:

a. The information provided by others and the company itself are believed to be reliable. At the time of writing this report, we made no verifications and representation as to the accuracy of such information.

b. The findings and conclusion of this report are restricted for the internal by ABC company’s management.

c. We as the consultant do not commit and not required to provide future services as pertaining to the implementation of the objective of this report by ABC company.

d. The information contained herein are only valid for the intended purpose and as per the valuation date. Company Valuation代写 **范文

e. The subject company’s compliance with all the necessary laws and regulations are assumed.

f. We do not give assurance of future performance of the company as indicated in this report due to uncertain future of doing business.

g. The financial information used for the compilation of this report are not examined and we do not provide audit opinion or assurance on their accuracy whatsoever.

h. We do not hold perfect knowledge in regard to social media economy as related to the subject company.

i. This valuation report assume the going concern of the subject company and that no significant changes in the company are expected in the near future.

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The History and Nature of the Business  Company Valuation代写

Facebook was founded in 2004 by Mark Zuckerberg Eduardo Saverin, Dustin Moskovitz and Chris Hughes while in Harvard University. Since then, Facebook has been one of the largest social media platform in the world. One year after it was started, the site had more than 1 million users and has been growing exponentially ever since to almost 3 billion users in 2019. It came to be known as Facebook, Inc and based in Menlo Park, California.

Initially, Facebook services were limited to Harvard students and slowly spread to Columbia, Stanford and Yale students. It was eventually opened for all other ivy league schools MIT and university and colleges in Boston. After a while in 2006, it expanded to allow access by anyone over 13 years old. The application grew a company and held its initial public offer in 2012 which value the company at $104 billion and the largest in the history of a newly listed company in history. Company Valuation代写 **范文

Facebook has more than 2 billion active users every day (O’Connel, 2019). These users are distributed in its various services including Instagram, WhatsApp or Messenger. The large number of users is the main source of Facebook revenues. In 2018 financial year, the company’s total revenue was $55.8 billion and marked a 37 percent increase from 2017. The 99 percent of these revenues are derived from digital marketing (Black, 2019). The following are the forms of advertising that the company use to generate its revenues.

a. Self-serve marketing

b. Target marketing

c. Facebook Messenger ads

d. Video ads

e. Facebook mobile

f. Data generation

National Economic and Industry Conditions  Company Valuation代写

General Economic and Outlook

Billions of people are using social media every day and the number keep increasing. The number is estimated to grow up to 3 billion daily active users by 2020. People use social media for personal relationships, entertainment, work, studies among other uses. In every minute more than 30 million messages are sent on Facebook.

The trend of using Facebook is not just changing the communication arena but how businesses are conducted. Across industries, social media is turning to be an essential component of ant business strategy. More and more businesses are using Facebook to reach out and connect to customers through adverts. The trend use of social media has prompted researchers to study social media economics as explained below.

Social Media Economics  Company Valuation代写

The economics of social media is built on two strategies which include:

a. Obtaining more users, and then increasing the amount of personal information collected about those users that can be turned into targeted ads, and

b. Getting users to spend increasing amounts of time on these platforms so they can see more ads.

Facebook work to ensure the number of active users grow. It is evident in the moves to buy WhatsApp, Instagram, Oculus, and Atlas as well as other developments. The management has also harnessed the power of behavioral economics that states that humans are not usually rational. It has therefore integrated feelings, sharing, likes, and friends to attract users.

Industry Conditions and Outlook  Company Valuation代写

Social media industry will continue to grow as internet and mobile technologies advances. More people are becoming connected to the internet and hence recruitment in the pool of social media users. Businesses on the other hand are increasingly using and depending on social media platforms to create connections, networks, communication and most importantly build their market through advertising. These trends are signals of continued growth of social media industry.

Historical Financial Statements

This section presents a summary of historic Income Statements, Balance Sheet, and Cash Flow for Facebook.

Financial performance data is presented and analyzed in order to substantiate the performance of the company compared to the industry. These historical expenses, revenues and income will be used to estimate future performance of the company.

Historical Income Statement  Company Valuation代写

The table below is a summary of Facebook, Inc’s income statement

  2014 2015 2016 2017 2018
Net sales revenue 12.47 17.93 27.64 40.65 55.84
Total cost of sales 2.19 2.87 3.79 5.45 9.36
Gross profit 10.28 15.06 23.85 35.2 46.48
Total expenses 5.3 8.77 11.42 15 21.57
Income from operations          
Total other expenses          
Income before taxes 4.91 6.19 12.52 20.59 25.36
Total income taxes 1.97 2.51 2.3 4.66 3.25
Net income 2.93 3.67 10.19 15.92 22.11
Historical Balance Sheet  Company Valuation代写
  2014 2015 2016 2017 2018
Assets          
Cash and short-term investment 11.2 18.43 29.45 41.71 41.12

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References  Company Valuation代写

O’Connel, B. (2019). How does Facebook make money? Six primary revenue streams. Retrieved from https://www.thestreet.com/technology/how-does-facebook-make-money-14754098

Black, E. (2019). How Facebook makes money by targeting ads directly to you. Retrieved from https://www.cnbc.com/2019/04/02/how-facebook-instagram-whatsapp-and-messenger-make-money.html

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