How Much Could WhatsApp Be Worth To Facebook Going Forward?

January 17th, 2018 by Trefis Team
FB: Facebook logo
FB
Facebook

Facebook (NASDAQ:FB) is likely to start substantially monetizing WhatsApp from 2019, and we expect Instagram and Whatsapp to contribute around 25% to Facebook’s valuation. Our base case scenario assumes that average revenue per user from WhatsApp will increase from around $1 in 2019 to around $6 by the end of our forecast period. A faster pace of growth in these revenues would make WhatsApp even more valuable to Facebook. WeChat – a similar messaging app in China – generates average revenue per user of $7, and if Whatsapp can generate a similar metric soon, it could add around $10 to $25 billion to Facebook’s valuation, depending on the pace of revenue growth.

Our interactive model analyzes the impact of WhatsApp’s revenues on Facebook’s valuation.

Relevant Articles
  1. Earnings Beat In The Cards For Honeywell?
  2. Higher Keytruda Sales To Drive Merck’s Q1?
  3. Is Procter & Gamble Stock Appropriately Priced At $160?
  4. Should You Pick Intuitive Surgical Stock At $370?
  5. China In Focus As Apple Reports Q2 Results
  6. Here’s What To Expect From Corning’s Q1

WhatsApp is likely to be a key growth driver for Facebook in the long term. If it is able to follow the monetization model of WeChat, it can add significantly to Facebook’s valuation.

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology