Can LinkedIn (LNKD.DL) ever grow into its valuation? At 20.8 times sales, the stock is certainly expensive. In the video below, Fool contributor Daniel Sparks takes a look at LinkedIn's current growth trends and projects what its future earnings potential could look like in several years.
LinkedIn doubled its net margin and growing revenue by 72% in the last year, and Daniel believes that this young and fast-growing company could easily double its current revenue levels and net margin again in two years. By projecting two years out, Daniel is able to get a better look at the company's current valuation by adding a bit more perspective.
As it turns out, LinkedIn isn't terribly expensive after all.
