Facebook has had good run with its valuation but how accurate is it? The company is valued somewhere between $50-$80bn...and all of this within 7 years. Looking at it another way, that’s $2.7m for every day of the 2500 days it’s been in existence. In mid January, the Goldman Sachs investment of $500m allegedly valued the company at $50bn. A tactical move as it locks the bank in for earning fees in any future IPO (where a significant portion of their revenues derive) but quite importantly it pre fixes a high starting value for an initial public offering (IPO) or floatation (having been an analysts at Goldmans, everything they do is meticulously planned and calculated). The less equity that is exchanged for a specific investment amount, the greater the company is valued at, i.e. if you split 1% of a company share by 100,000 (0.00001 shares) but sold that for £500, in theory that would value the company at £50m. Are the banks meddling again?

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