What is the value of Facebook?
- On May 17, 2012, the social networking company Facebook Inc. fixes its initial public offering (IPO) price at $38.00 a share. Over the next couple of months, contrary to expectations raised by previous IPOs, the stock price crashes more than 50 per cent. Immediately, the question arises whether the issuer’s or the stock market’s pricing of the share are in line with the firm’s fundamentals. Thus, the purpose of this paper is to determine the company value in close proximity to the date of IPO.
| Author details: | Josef SchosserORCiDGND, Heiko StröbeleGND |
|---|---|
| DOI: | https://doi.org/10.1108/JRF-05-2018-0069 |
| ISSN: | 1526-5943 |
| ISSN: | 2331-2947 |
| Title of parent work (English): | Journal of risk finance |
| Subtitle (German): | Evidence from the Schwartz/Moon model |
| Publisher: | Emerald Group Publishing Limited |
| Place of publishing: | Bingley |
| Publication type: | Article |
| Language: | English |
| Date of first publication: | 2019/08/12 |
| Publication year: | 2019 |
| Release date: | 2020/12/01 |
| Tag: | Facebook; Firm valuation; G32; Growth company; Initial public offering; Moon model; Real options; Schwartz |
| Volume: | 20 |
| Issue: | 3 |
| Number of pages: | 24 |
| First page: | 267 |
| Last Page: | 290 |
| Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
| DDC classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Peer review: | Referiert |
