And so some aspects of the internet bubble are back. LNKD played allocation games with its stock, ensuring a huge pop a la 1999....The market cap of LinkedIn at $83, based on 94.5 million shares, is $7,843 million. Taking out $297.6 million in cash means $7,546 million in Enterprise Value. The relevant metrics are:
* Revenues (pro rated annualized): $375.6 million or Price/Revenue 20.9x
* EBITDA (pro rated annualized): $53.2 million or EV/EBITDA 141.8x
* Net Income (pro rated annualized): $8 million or P/E 980x
Too high, way, way too high....