Is Twilio Inc (TWLO) overvalued?
On Equity Rank's model estimate, TWLO trades close to its fair value (8% above it). Twilio Inc (TWLO) last closed at $202.02; the multi-method model fair value is $186.57.
| Price | Model fair value | Price vs model |
|---|---|---|
| $202.02 | $186.57 | 8% above |
What the answer rests on
- 1 of 8 valuation methods put TWLO's value above its price and 7 put it below, so the methods mostly agree.
- To justify today's price, TWLO's free cash flow would need to grow about 17.7% a year for ten years (a reverse discounted cash flow).
- Over the past year the price sat below the model fair value on 12% of trading days. The gap ranged from 31% below to 56% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TWLO's fair value · What prices assume · Other companies