Much awaited event in the world of IPOs (Initial Public Offers) is finally just round the corner.

The much awaited event in the world of IPOs (Initial Public Offers) is finally just round the corner. We are referring to the IPO of the popular social networking site Facebook. The company plans to file for its offer sometime next week. The IPO is estimated to be anywhere between US$ 75 bn to US$ 100 bn. It had revenues to the tune of US$ 4 bn in 2011. This means that the company would try and look at a valuation of nearly 25 times its revenues. If it actually manages to get the valuations it seeks, it would be one of the highest premium IPOs. However, the question would still haunt the minds of all value investors. Does any company that does not have a long track record of delivering superior results deserve such high valuations? Is it just another phase like the do tcom bubble wherein all popu lar sites get ridiculously high valuations just because they are in the field of social networking? Isn't it also equally important to be profitable and value accretive?