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:
We started the process of determining a valid price forecast for Twitter Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Twitter Inc ranked in the 88th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1036.5%. As for the metrics that stood out in our discounted cash flow analysis of Twitter Inc, consider:
The company's compound free cash flow growth rate over the past 3.98 years comes in at 1.17%; that's greater than 93.46% of US stocks we're applying DCF forecasting to.
As a business, TWTR is generating more cash flow than 80.41% of positive cash flow stocks in the Technology.
Twitter Inc's effective tax rate, as measured by taxes paid relative to net income, is at 197 -- greater than 99.11% 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 HEAR, DELL, SAIL, APPS, and DXC.