It's still the cheapest FANG stock
Wall Street expects Facebook to grow its earnings at an average rate of 22% over the next five years. Based on that forecast, we get a PEG ratio of 1.0. A PEG ratio below 1 indicates that a stock is undervalued, but that's rare for high-growth tech stocks. The three other "FANG" stocks have 5-year PEG ratios closer to 2. This means that if you believe that Facebook can generate at least 20% revenue and EPS growth over the next five years, it's actually the cheapest FANG stock.
Analysts don't offer 10-year estimates, but Facebook's growth momentum should continue as it follows its 10-year growth plan. Reports of Facebook's "death" have been greatly exaggerated, and it could climb much higher over the next ten years.
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