Facebook toyed with major intermediate-term support on its Thursday rout. As noted in the chart below, support can be seen at the gap up in the mid-160's from May, and a next level of support near 150 following Facebook's late March swoon.
Here's the chart:
So not much of a surprise to see the lows where they settled on Friday, supported by a wide channel trading range (175 to 195) that starts in August of 2017.
From a valuation perspecitve, I see FB modestly overvalued at its $175 close, by about 5%, pinning fair value near $165 per share. My valuation metrics are below:
So probably not a bad level to wade into the stock, taking note of potential additional downside risk should the stock revisit its March-April lows.
As for the assumptions in the valuation model, I have assumed a rather conservative 15% growth rate in free cashflow. I look at growth from a long-term perspective, considering the company shifting to a more mature business model.