Market Valuation: $250 Billion
Ironbound Buy-Side Valuation: $440 Billion
Ironbound Assessment: California based Meta Inc., formerly named Facebook founded in 2004, is a multinational Social Media conglomerate focused on technologies that help people connect, find communities, and grow businesses. Meta wants all their products to share a vision of bringing the metaverse to life. Our upside valuation is $1 Trillion based on $100 Billion in sales for 2021 and continued sales growth exceeding 10% over the next few years. This is a reasonable expectation considering the company reported in 2021, Daily-active-users (DAU) just shy of 2 billion, nearly a third of the world’s population. The company has a strong societal mission, giving people the power to build communities and bring the world closer together, which will help the company continue to attract and retain top talent. Severely depressing the potential upside is the founder’s voting control, currently used to direct over $10 Billion a year to finance the buildout of a highly uncertain Metaverse. On the other hand, the limited control is helping prevent a sovereign wealth fund or group from acquiring the company for $440 Billion, or 13-times the average operating income between 2021 and 2019. At this price, the buyer(s) would acquire $100 Billion in assets and pay about 10¢ per DAU per day for 5 years, comparable to the Twitter acquisition, in Goodwill.
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