How At $104B, Facebook Is Worth 2.26 Times The Value Of All Quoted Stocks In Nigeria

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At the close of trade today, the Nigerian Stock Exchange All Share Index had a market capitalization of N7,137,597,021,094.14 or $46,049,013,039.32 ($46b). That basically is the total worth of the company’s listed on the exchange as at today. Today as well Facebook had its initial IPO and was valued at $104b yes One hundred and four billion dollars, roughly 2.26 times the value of all the quoted company’s on the Nigerian Stock Exchange.

Dangote Cement, the company with the largest market capitalization on the Nigerian Stock Exchange with a market cap N1.9tr ($12b) trades at 8times its revenue and 14.83times its profit having made a profit of about N125b ($800m) in 2011. Facebook on the other hand at a value of $104b is thought to be trading at 28 times its revenue and 104times its profits. This puts its world wide trailing profits at $1b, just $200m more than what Dangote Cement made from Nigeria alone. So, its either American Investors are utterly crazy or just overtly bullish. Or maybe we as Nigerians are just not giving our quoted company’s the value that they deserve. What do you think?