Twilio Inc.

WBAG:TWLO Stock Report

Market Cap: €16.3b

Twilio Valuation

Is TWLO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TWLO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TWLO (€104.78) is trading below our estimate of fair value (€110.18)

Significantly Below Fair Value: TWLO is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TWLO?

Key metric: As TWLO is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TWLO. This is calculated by dividing TWLO's market cap by their current revenue.
What is TWLO's PS Ratio?
PS Ratio3.9x
SalesUS$4.34b
Market CapUS$17.12b

Price to Sales Ratio vs Peers

How does TWLO's PS Ratio compare to its peers?

The above table shows the PS ratio for TWLO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.2x
VRSN VeriSign
12.2x3.7%US$18.8b
AKAM Akamai Technologies
3.7x6.9%US$14.6b
OKTA Okta
5.8x9.4%US$14.5b
WIX Wix.com
7.2x12.3%US$12.1b
TWLO Twilio
3.9x7.2%€17.1b

Price-To-Sales vs Peers: TWLO is good value based on its Price-To-Sales Ratio (3.9x) compared to the peer average (7.2x).

Price to Sales Ratio vs Industry

How does TWLO's PS Ratio compare vs other companies in the European IT Industry?

14 CompaniesPrice / SalesEstimated GrowthMarket Cap
TWLO 3.9xIndustry Avg. 0.8xNo. of Companies26PS00.61.21.82.43+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TWLO is expensive based on its Price-To-Sales Ratio (3.9x) compared to the European IT industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is TWLO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TWLO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.9x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate TWLO's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TWLO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€104.78
€85.81
-18.1%
24.3%€133.29€47.61n/a28
Dec ’25€98.48
€82.10
-16.6%
22.3%€127.78€47.33n/a28
Nov ’25€78.14
€73.68
-5.7%
15.9%€101.51€46.14n/a26
Oct ’25€57.65
€62.19
+7.9%
17.2%€99.85€45.39n/a27
Sep ’25€55.77
€61.17
+9.7%
17.3%€98.35€44.71n/a27
Aug ’25€53.81
€62.22
+15.6%
17.4%€100.96€44.97n/a27
Jul ’25€52.41
€64.11
+22.3%
17.3%€102.64€45.72n/a27
Jun ’25€52.26
€63.61
+21.7%
16.9%€101.40€45.17n/a28
May ’25€56.71
€64.88
+14.4%
17.9%€100.95€42.21n/a30
Apr ’25€56.85
€64.88
+14.1%
17.9%€100.95€42.21n/a30
Mar ’25€55.65
€67.15
+20.7%
17.4%€101.65€42.51n/a30
Feb ’25€64.09
€68.19
+6.4%
16.9%€101.45€46.12n/a29
Jan ’25€69.63
€63.84
-8.3%
17.9%€99.88€45.40n/a30
Dec ’24€60.44
€63.30
+4.7%
16.8%€102.78€46.72€98.4830
Nov ’24€47.95
€64.55
+34.6%
16.9%€104.05€47.30€78.1430
Oct ’24€55.99
€64.55
+15.3%
16.9%€104.05€47.30€57.6530
Sep ’24€60.82
€61.98
+1.9%
17.1%€100.83€45.83€55.7730
Aug ’24€59.76
€58.68
-1.8%
20.5%€99.44€45.20€53.8130
Jul ’24€59.49
€59.80
+0.5%
20.4%€102.39€46.54€52.4130
Jun ’24€62.94
€59.92
-4.8%
20.3%€101.72€46.24€52.2630
May ’24€47.71
€77.67
+62.8%
17.5%€103.15€46.89€56.7130
Apr ’24€61.28
€77.67
+26.8%
17.5%€103.15€46.89€56.8530
Mar ’24€62.24
€78.16
+25.6%
17.2%€103.17€46.90€55.6530
Feb ’24€55.06
€70.97
+28.9%
32.8%€137.85€40.44€64.0932
Jan ’24€44.06
€75.50
+71.4%
32.2%€141.51€41.51€69.6332
Dec ’23€46.65
€77.58
+66.3%
32.1%€145.17€42.58€60.4432

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/17 01:35
End of Day Share Price 2024/12/17 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Twilio Inc. is covered by 47 analysts. 27 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James KelleherArgus Research Company
William PowerBaird
Ishan MajumdarBaptista Research