Facebook Company Information

Stock Name: Facebook, Inc. (FB), Nasdaq

Business Description

Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its solutions include Facebook Website and mobile application that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers; Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application to communicate with people and businesses across platforms and devices; and WhatsApp Messenger, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others. As of December 31, 2016, it had approximately 1.23 billion daily active users. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.

Financial Result
Year 2015 - 2017








Reference:
https://finance.yahoo.com/quote/FB?p=FB
https://s21.q4cdn.com/399680738/files/doc_financials/2017/Q3/Q3-'17-Earnings-Presentation.pdf
https://investor.fb.com/financials/default.aspx

Rules of Investing - How to Check Undervalue Stock

Rules of Investing

1. Understand the business
2. Will people continue to use the product in 20 years? Stock must have long term prospects.
3. A stock must be managed by vigilant leaders.
4. Does the company have a low-cost durable (lasting) competitive advantage?
5. Is the company recession proof?
6. Has the company had consistent earnings growth? Generally the EPS growth must be at least 8%
7. Growing sales.
8. Has the company had consistent dividend growth? Generally the dividend growth must be at least 8%.
9. Does the company have a low payout ratio? Must be 75% or less.
10. Is the company cash rich?
11. Does the company have low debt? Must be less than 70%.
12. Does the company have a good credit rating? Must have a min S&P Credit Rating of “BBB+”.
13. Does the company actively buy back its shares? (optional)
14. Is the stock undervalued? 
1. The P/E Ratio must be 25 or below.
2. Is the current dividend yield higher than the average dividend yield of 5 years?
3. The P/B Ratio should be 3 or less
15. Keep emotion out of investing.
1. Discipline and patience are the keys to successful investing.

https://www.youtube.com/watch?v=QNEGxb4BMxI