• What market is Facebook competing in?
• The two main methods for valuing a private company are (a) applying ratios (e.g. price/earnings) for comparable companies (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?

How can the analysis of competition and competitive advantage assist us in valuing Facebooks shares?

What role do real options play (a) in the value of Facebooks shares and (b) in Facebooks strategy?