Twitter offers various products and services for users, including Twitter that allows users to create, distribute, and discover content; and Vine and video, a mobile application that enables users to create and distribute short looping videos. The company was founded in 2006 and is based in San Francisco, California.
TWTR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TWTR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Twitter Inc ranked in the 82th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 605.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for TWTR, they are:
The company's compound free cash flow growth rate over the past 4.18 years comes in at 0.99%; that's greater than 91.41% of US stocks we're applying DCF forecasting to.
Twitter Inc's effective tax rate, as measured by taxes paid relative to net income, is at 172 -- greater than 98.22% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 8. This value is greater than only 22.58% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NEWR, MFGP, ANGI, UCTT, and EIGI can be thought of as valuation peers to TWTR, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Twenty-six words tucked into a 1996 US law overhauling telecommunications have allowed companies like Facebook, Twitter and Google to grow into the giants they are today.Those are the words President Donald Trump challenged in an executive order on Thursday, one that would strip those protections if online platforms engaged in “editorial decisions” – including, in the president’s view, adding a fact-check warning to one of his tweets.Under the US law, internet companies are generally exempt…