In my previous post, I straight-lined Facebook’s (FB) margins down to 32.5% by 2026 from 45% in 2016. This gave a median valuation of $94 per share.In this exercise I am valuing FB based on adjustments to this straight-line EBITDA margin contraction assumption. The chart below displays FB’s projected intrinsic share price based on consistent margin contraction varying from 50-130 basis points per year, in ten-point increments. Namely, the valuation is sensitized to EBITDA margin decreasing from 45% in 2016 to 32% (130 bps per year) - 40% (50 bps per year) by 2026. The valuation range comes to $92-$127 per share. In my base analysis, where I straight-line contracted pre-tax margins by 125 basis points per year, the valuation range came to $86-$103 per year with WACC sensitivity parameters of +/- 50 basis points. The main takeawayIf I wanted to be extra cautious, I would begin to buy Facebook at $86 per share. If I were less cautious, I could go with the median lower bound of the margin sensitivity analysis at $92 per share. At its current price of $114, it would have to fall at least 20% to be in the range I would feel comfortable in purchasing it at. Its 52-week low stands at $72.00 and it hasn’t been at the $86 level since September 2015.