What role do real options in the value of facebook''s shares

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Prepare a written analysis of the case: "Valuing Facebook" (I have attached the case). Please address the following questions in your write up:

(1) The two main methods for valuing a private company are (a) applying ratios (e.g. price/earnings) for comparable companies and (b) using DCF analysis to estimate the net present value of a company. How useful are these approaches in estimating the value of Facebook shares?

(2) How can the analysis of competition and competitive advantage assist us in valuing Facebook's shares?

(3) What role do real options play (a) in the value of Facebook's shares and (b) in Facebook's strategy?

Reference no: EM13885740

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