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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Twitter Inc. To summarize, we found that Twitter Inc ranked in the 57th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Twitter Inc, consider:
The compound growth rate in the free cash flow of Twitter Inc over the past 4.43 years is 0.79%; that's better than 83.8% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet suggests that 11% of the company's capital is sourced from debt; this is greater than merely 23.56% of the free cash flow producing stocks we're observing.
Twitter Inc's effective tax rate, as measured by taxes paid relative to net income, is at 97 -- greater than 97.22% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TWTR, try PCOM, GDDY, NTWK, JCOM, and UCTT.
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