

How much will Facebook make off your data when they IPO on Friday?   - trotsky
https://fbme.disconnect.me/login

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trotsky
<https://fbme.disconnect.me/algorithm>

How do we figure out the value of your Facebook data?

Our math teachers always said “show your work”, so here’s ours. We calculate
your personal Facebook valuation by blending macro info about the company with
your profile info:

Facebook has 2,819,034,047 outstanding shares.1 The company expects a price
range of $34.00 to $38.00 per share when they IPO on Friday.

We assume the midpoint of the range, $36.00 — we’ll use real-time stock quotes
starting Friday. ($34.00 + $38.00) ÷ 2

At this price, Facebook will have a $101.485 billion valuation. 2,819,034,047
× $36.00

The company has 526 million daily active users.

An average user will be valued $192.94. $101.485 billion ÷ 526 million

$3.154 billion of Facebook’s $3.711 billion in 2011 revenue, 85%, was derived
from user data (advertising).

An average user’s data will be valued $164.00. $192.94 × 0.85

We use the Facebook Ads system to compute the relative value of your profile
info — your location, age, gender, sexual preference, relationship status, and
education level. For instance, a US resident is 1.75 times more valuable to
Facebook than an average user, a 25-to-34-year-old is 1.10 times more
valuable, and a male is 0.94 times less valuable.

We combine these factors to arrive at the value of your Facebook data.

