Twilio Valuation
| TWLO Stock | USD 102.07 3.63 3.69% |
At this time, the company appears to be overvalued. Twilio Inc has a current Real Value of $86.28 per share. The regular price of the company is $102.07. Our model measures the value of Twilio Inc from inspecting the company fundamentals such as Shares Outstanding of 153.38 M, return on equity of -0.0508, and insignificant Operating Margin as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Twilio's valuation include:
Price Book 1.8349 | Enterprise Value 13.5 B | Enterprise Value Ebitda 115.1597 | Price Sales 3.4797 | Forward PE 23.2558 |
Overvalued
Today
Please note that Twilio's price fluctuation is very steady at this time. Calculation of the real value of Twilio Inc is based on 3 months time horizon. Increasing Twilio's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Twilio is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Twilio Stock. However, Twilio's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 102.07 | Real 86.28 | Target 67.43 | Hype 100.79 | Naive 95.35 |
The intrinsic value of Twilio's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Twilio's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Twilio Inc helps investors to forecast how Twilio stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Twilio more accurately as focusing exclusively on Twilio's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Twilio's intrinsic value based on its ongoing forecasts of Twilio's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Twilio's closest peers.
Twilio Cash |
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Twilio Valuation Trend
Knowing Twilio's actual value is paramount for traders when making sound investment determinations. Using both Twilio's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Twilio Total Value Analysis
Twilio Inc is at this time expected to have valuation of 13.53 B with market capitalization of 15.1 B, debt of 1.18 B, and cash on hands of 4.21 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Twilio fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
13.53 B | 15.1 B | 1.18 B | 4.21 B |
Twilio Investor Information
About 81.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.83. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Twilio Inc recorded a loss per share of 2.57. The entity had not issued any dividends in recent years. The firm had 1:20 split on the December 12, 2007. Based on the analysis of Twilio's profitability, liquidity, and operating efficiency, Twilio Inc is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in December.Twilio Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Twilio suggests not a very effective usage of assets in November.Twilio Ownership Allocation
Twilio Inc shows a total of 153.38 Million outstanding shares. The majority of Twilio Inc outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Twilio to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Twilio Inc. Please pay attention to any change in the institutional holdings of Twilio Inc as this could imply that something significant has changed or is about to change at the company. On September 26, 2023, Representative Morgan McGarvey of US Congress acquired under $15k worth of Twilio Inc's common stock.Twilio Profitability Analysis
The company reported the previous year's revenue of 4.15 B. Net Loss for the year was (1.02 B) with profit before overhead, payroll, taxes, and interest of 1.81 B.About Twilio Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Twilio Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Twilio Inc based exclusively on its fundamental and basic technical indicators. By analyzing Twilio's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Twilio's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Twilio. We calculate exposure to Twilio's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Twilio's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2 B | 2.1 B | |
| Pretax Profit Margin | (0.24) | (0.25) | |
| Operating Profit Margin | (0.21) | (0.22) | |
| Net Loss | (0.24) | (0.26) | |
| Gross Profit Margin | 0.49 | 0.57 |
Twilio Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 183.3 M | |
| Forward Price Earnings | 23.2558 |
Twilio Current Valuation Indicators
Twilio's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Twilio's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Twilio, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Twilio's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Twilio's worth.When determining whether Twilio Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Twilio's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Twilio Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Twilio Inc Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Twilio Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Twilio. If investors know Twilio will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Twilio listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.57) | Revenue Per Share 25.084 | Quarterly Revenue Growth 0.097 | Return On Assets (0.01) | Return On Equity (0.05) |
The market value of Twilio Inc is measured differently than its book value, which is the value of Twilio that is recorded on the company's balance sheet. Investors also form their own opinion of Twilio's value that differs from its market value or its book value, called intrinsic value, which is Twilio's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Twilio's market value can be influenced by many factors that don't directly affect Twilio's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Twilio's value and its price as these two are different measures arrived at by different means. Investors typically determine if Twilio is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Twilio's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.