For those who believe in fundamentals, this stock is worth about 28 computed using the standard formula based on growth. Divide stock price by the stock's PEG ratio. 23.21 / .42 = 55.
Adjustment for cash and debt results in 28 per share valuation.
With the new FDA approval, the stock is likely to be worth north of 30.00 and we will see that after roll out.
1. Never buy a stock with a price:sales ratio greater than 5.0. FB price:sales Price/Sales (ttm): 18.01 which is a nightmare waiting to happen number. Called "castles in the air" or balloons ready to pop.
2. Never buy a stock with a p/e ratio greater than 30. FB forward p/e is 26.58 which is "o.k." but not enticing.
3. Never buy a stock, regardless of p/e ratio if the PEG ratio is greater than 1.0. FB PEG ratio is 1.06, about 6% too high.
4. Never buy a stock where debt exceeds cash. FB passes this one with flying colors with over $6 cash per share.