When Facebook goes public this week, the company will be valued at roughly $100 billion.
It will be the highest valuation ever for an initial public offering of a tech company. Is Facebook really worth this much money?
One way to frame the question is to consider a single fraction.
The number on top of the fraction is the total value of the company. The number on the bottom is the company's profits over the past year. This fraction is called the price-to-earnings ratio. It's widely used by investors in stocks.
Every week, as part of a new tech segment, we'll be digging into our digital sandbox for some fun. New Yorker cartoonist Matthew Diffeeis starting things off with a reviewof Draw Something, a popular app that works a lot like Pictionary: Players pick a word, draw clues and then watch as their opponents guess the answer. But, as Diffee explains, the app's name is a bit misleading.
This week, All Things Considered is hitting refresh on its All Tech Considered segment — taking you into the changing landscape of technology and how it intersects with everyday life. From Silicon Valley to China, we'll feature stories from around the world, stay on top of innovations that matter — and get you the news you need to know. Every Monday, we'll preview the week's big tech stories.