Facebook is a good example of a company with aggressive expectation pricing. Сconservative cash-flow based valuation produces a value of only $15/share. The remaining $30/share is the price investors are willing to pay for the present value of yet unobservable future cash flows. Future cash flows, though, are uncertain both in terms of size and time. As a result, investors’ perceptions of the future cash flows can swing dramatically depending on the prevailing news flow. While the Facebook might be appealing as a business, the fact that two-thirds of the current price is not quite real makes it a hard buy.