Is A $100 Billion Facebook Ridiculous?

New projections suggest that Facebook will be worth more than $100 billion -- is that valuation ridiculous?

It seems like the press can’t wait long enough for Facebook to boost revenue, as reports this week predict that Facebook could be worth $100 billion when the company files to go public.

This projection first reported in The Wall Street Journal comes from $2 billion in earnings before interest, taxes, depreciation, and amortization (Ebitda) in 2011, a number that we believe iactually underestimates Facebook’s potential.

However, the projection also shows just how pricey Facebook’s stock has become.

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