Is Monster Worldwide, Inc. (MWW) Cheap Now?

Facebook Inc (NASDAQ:FB) has many more users, at a total of around 1.11 billion. It is trading at around $24.30 per share, with a total market cap of $58.80 billion. So each Facebook Inc (NASDAQ:FB) user is worth around $53 on the market. What is interesting about Facebook is the fact that it owns private data of its users, including pictures, status, activity updates, etc. Thus, those are invaluable assets waiting to be monetized. Currently, Facebook generated most of its revenue from advertisements. In the first quarter 2013, around 85% of its total revenue, or $1.25 billion, was derived from advertisements.

The social networking effect places high valuation multiples on both LinkedIn and Facebook. While LinkedIn is trading at more than 16.8 times its sales and nearly 80 times its forward earnings, Facebook’s P/S and forward P/E stays at 10.8 times its sales and 31.6 times its forward earnings.

My Foolish take

Quantitatively, Monster Worldwide, Inc. (NYSE:MWW) seems to be quite cheap with much lower sales and earnings multiple. However, the business has been declining. In contrast, LinkedIn and Facebook, despite high valuation multiples, could fit well in technology portfolios of long-term investors, thanks to their huge sticky users’ base and solid social networking platform.

The article Is Monster Worldwide Cheap Now? originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Facebook and LinkedIn. The Motley Fool owns shares of Facebook and LinkedIn. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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