Facebook (FB) was able to hit nearly $18 billion in sales for 2015 and I expect that figure to grow 30% Y/Y for 2016. Sales hit $5.4 billion in Q1, look on pace for about $6 billion for Q2, and should be in the mid-$6 billion range for Q3. FB is a company that generates the majority of its revenues in Q4. 2015Q4 generated a huge earnings surprise for the company. Q4 2016 should bring revenues of around $8 billion I would expect, or at least high-7’s. I have sales conservatively projected at $26.0 billion for the year.Moving forward on revenue, I think 30% growth isn’t out of the question. Sell-side naturally has Y/Y growth from 2016-17 pegged somewhere in the mid-30% range. After that it becomes less clear. The company’s user base will grow less each year and reach a point of saturation, though monetization growth (what truly matters) should theoretically come to exceed user growth with some inherent lag between the two. I have Y/Y revenue growth slowing by 10% each year from 2018 going forward (27% in 2017, 24.3% in 2018, etc.), such that growth for the FY2026 comes to 11.6%. This would put revenue at $178 billion by the end of 2026, or nearly 7x what I have projected for 2016. Where the company will get hit to some extent moving forward is in its margins. FB is a company where I would not expect much in the way of margin expansion. I think its business model is exceptional, but it is not immune to outside competition. Advertising – where over 95% of its revenue is concentrated – is a competitive space and has another giant (GOOG) who acts as a direct competitor (although the means by which they attract users is not in direct competition). FB had an EBITDA margin of 45.5% in 2015. Projecting the effects on margins several years ahead of time is difficult, but a contraction down to 30%-35% should be a reasonable expectation. Google, which operates a similar but more mature business model, has operated at an EBITDA margin of 32.5% for the past two years. Accordingly, over the ten-year projection period, I’ve straight-lined Facebook’s EBITDA margin down to 32.5% from 45% in 2016 (125 basis point drop per year).Following historical trends, I have depreciation and amortization expense of 10% of sales and capital expenditures at 16% of sales (using a five-year historical average in the case of the latter).In terms of other tidbits:Effective long-term tax rate of 35%Cash flow from operations (i.e., working capital) growth of 2% year-over-year (basically to model a long-term growth rate)Cost of equity at 7.80%. FB may be a growth stock, but its cost of equity is fairly low due to the relative low volatility.Perpetual growth rate of 2%As it’s getting late for me currently, I will provide the price target and sensitivity analysis tomorrow.