Exhibit 12

Market Comparables — Multiples

EV/Sales Price/Earnings

Firm Ticker Share Price 2013E 2014E 2013E 2014E

Amazon AMZN $ 224.39 1.3x 0.9x 177.7x 109.5x
Apple AAPL $ 553.17 2.5x 1.8x 12.8x 11.1x
Cisco Systems CSCO $ 16.54 1.6x 1.4x 9.0x 8.5x
Google GOOG $ 611.11 4.7x 3.6x 14.5x 12.4x
Groupon GRPN $ 12.17 4.2x 2.9x 69.2x 17.9x
LinkedIn LNKD $ 110.56 10.7x 7.3x 173.4x 96.6x
Microsoft MSFT $ 30.21 2.8x 2.5x 11.2x 10.0x
Yahoo! YHOO $ 15.40 2.8x 2.6x 17.1x 15.0x
Zynga ZNGA $ 8.56 5.9x 4.9x 33.4x 25.1x

Mean 4.1x 3.1x 57.6x 34.0x

Median 2.8x 2.6x 17.1x 15.0x

FB IPO suggested price as per industry averag 15.3 16.4 38.0 29.6
Facebook FB $ 34.00 10.1x 7.2x 51.5x 39.1x
$ 38.00 11.2x 8.0x 57.6x 43.7x

Facebook assumptions 2013E 2014E

EPS consensus forecast $0.66 $0.87
Sales forecast mn (Ex. 11) 7,274 10,183
Net Debt mn (Ex. 11) (413.0) (413.0)
Pre-money shares (mn) 1,958.1 1,958.1

15.068663902
 Price/Sales

2013E 2014E
1.6x 1.3x
3.3x 2.8x
1.9x 1.8x
5.4x 4.6x
3.4x 2.6x
12.7x 8.6x
3.4x 3.2x
4.1x 4.0x
4.5x 3.7x

4.5x 3.6x
3.4x 3.2x

10.0x 7.1x
11.2x 8.0x
VALUATION OF FACEBOOK, BASED ON PROF. ASWATH DAMODARAN

DCF
Assumptions:
Revenue growth rate
EBIT (Operating) margin
Tax rate
Increase in CAPEX + WC as % of sales
Cost of capital

Free cash flow to firm ($ millions):

Revenues
EBIT
EBIT(1-tax)
Increase in CAPEX + WC
FCFF
Terminal value

Present value:
Cumulative discount factor
PV of FCFF and TV

Value of firm
- Debt
+ Excess Cash
Value of equity
- Cost of equity options (after tax)
Value of common equity
Pre-IPO number of shares (millions)
Estimated value /share
Price talk
Price as % of value

Assumtions ( in $ millions)
Revenues
Operating income or EBIT
Book value of equity
Book value of debt
Excess Cash
Pre-IPO number of shares (millions)
Current stock price
Effective tax rate (last 3 years)
Marginal tax rate

The value drivers below:

Compounded annual revenue growth rate over next 5 years
Target pre-tax operating margin (EBIT as % of sales in year 10)
Sales to capital ratio (for computing reinvestment)

Market numbers
Riskfree rate
Initial cost of capital
Cost of capital after year 10

Estimation of Current Cost of Capital

Equity
Pre-IPO Shares outstanding
Current Market Price per share

Industry avg unlevered beta

Riskfree Rate
Equity Risk Premium
Levered Beta for equity

Debt
Pre-tax Cost of Debt
Marginal tax rate
Preferred Stock
Number of Preferred Shares
Current Market Price per Share
Annual Dividend per Share
 2011 2012E 2013E 2014E 2015E
Base year 1 2 3 4

40.0% 40.0% 40.0% 40.0%

45.7% 44.6% 43.5% 42.5% 41.4%
40.0% 40.0% 40.0% 40.0% 40.0%
67% 67% 67% 67%
11.1% 11.1% 11.1% 11.1%
67%

3,711 5,195 7,274 10,183 14,256

1,695 2,318 3,167 4,325 5,903
1,017 1,391 1,900 2,595 3,542
995 1,392 1,949 2,729
396 508 646 813

0.9004
357

3,088.5 WACC Equity

Market values $ 74,407.8
1,958.1 Weights in WACC 97.9%
Cost of Component 11.2%
$ 38.00

This year
$ 3,711.0 $ 5,195.4
$ 1,695.0
$ 5,228.0
$ 1,587.0
$ 2,000.0
1,958.1
$ 38.00
40.00%
35.00%

40.00%
35.00%
1.50

2.0%
11.1%
8.0%

1958.1
$ 38.00

1.52
2.0%
6.00%
1.54

3.65%
35%
 0
70
5
 2016E 2017E 2018E 2019E 2020E 2021E Terminal
5 6 7 8 9 10 year

40.0% 32.4% 24.8% 17.2% 9.6% 2.0% 2.0%

40.3% 39.3% 38.2% 37.1% 36.1% 35.0% 35.0%
40.0% 39.0% 38.0% 37.0% 36.0% 35.0% 35.0%
67% 67% 67% 67% 67% 67% 100%
11.1% 10.4% 9.8% 9.2% 8.6% 8.0% 8.0%

19,959 26,425 32,979 38,651 42,362 43,209

8,051 10,377 12,599 14,353 15,279 15,123
4,830 6,330 7,811 9,042 9,778 9,830
3,821 4,333 4,391 3,800 2,486 568
1,010 1,997 3,420 5,242 7,292 9,262

Debt Preferred Capital

$ 1,587.0 $ - $ 75,994.8
2.1%
2.2% 11.1%
s