Twilio Inc.

NYSE:TWLO Stock Report

Market Cap: US$22.6b

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.

Discounted Cash Flow
Simply Wall St
US$108.61
Fair Value
35.7% overvalued intrinsic discount
29
Number of Analysts

Below Fair Value: TWLO ($147.43) is trading above our estimate of fair value ($108.61)

Significantly Below Fair Value: TWLO is trading above our estimate of fair value.

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 Ratio5.2x
SalesUS$4.34b
Market CapUS$22.56b

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 Average9.4x
VRSN VeriSign
13.7x4.6%US$21.2b
MDB MongoDB
10.8x14.3%US$21.0b
GDDY GoDaddy
6.6x7.4%US$29.5b
OKTA Okta
6.6x9.6%US$16.7b
TWLO Twilio
5.2x7.2%US$22.6b

Price-To-Sales vs Peers: TWLO is good value based on its Price-To-Sales Ratio (5.2x) compared to the peer average (9.4x).

Price to Sales Ratio vs Industry

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

25 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.7x1.1%US$10.09b
DXC DXC Technology
0.3x-3.3%US$4.00b
RXT Rackspace Technology
0.2x0.4%US$659.95m
UIS Unisys
0.2x3.4%US$490.39m
TWLO 5.2xIndustry Avg. 3.7xNo. of Companies25PS02.85.68.411.214+
25 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TWLO is expensive based on its Price-To-Sales Ratio (5.2x) compared to the US IT industry average (3.7x).

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 Ratio5.2x
Fair PS Ratio5.5x

Price-To-Sales vs Fair Ratio: TWLO is good value based on its Price-To-Sales Ratio (5.2x) compared to the estimated Fair Price-To-Sales Ratio (5.5x).

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
CurrentUS$147.43
US$130.03
-11.8%
26.0%US$185.00US$60.00n/a29
Jan ’26US$108.08
US$95.75
-11.4%
24.3%US$140.00US$50.00n/a29
Dec ’25US$104.54
US$86.85
-16.9%
21.9%US$135.00US$50.00n/a29
Nov ’25US$84.84
US$80.22
-5.4%
15.8%US$110.00US$50.00n/a27
Oct ’25US$63.73
US$68.52
+7.5%
17.2%US$110.00US$50.00n/a27
Sep ’25US$62.76
US$68.42
+9.0%
17.3%US$110.00US$50.00n/a27
Aug ’25US$56.27
US$67.79
+20.5%
17.4%US$110.00US$49.00n/a27
Jul ’25US$56.75
US$68.70
+21.1%
17.3%US$110.00US$49.00n/a27
Jun ’25US$57.40
US$69.00
+20.2%
16.9%US$110.00US$49.00n/a28
May ’25US$60.95
US$70.69
+16.0%
17.9%US$110.00US$46.00n/a30
Apr ’25US$62.45
US$70.69
+13.2%
17.9%US$110.00US$46.00n/a30
Mar ’25US$60.40
US$72.66
+20.3%
17.4%US$110.00US$46.00n/a30
Feb ’25US$70.44
US$73.93
+5.0%
16.9%US$110.00US$50.00US$146.5829
Jan ’25US$75.87
US$70.31
-7.3%
17.9%US$110.00US$50.00US$108.0830
Dec ’24US$66.76
US$67.74
+1.5%
16.8%US$110.00US$50.00US$104.5430
Nov ’24US$50.49
US$68.24
+35.2%
16.9%US$110.00US$50.00US$84.8430
Oct ’24US$58.53
US$68.24
+16.6%
16.9%US$110.00US$50.00US$63.7330
Sep ’24US$65.42
US$67.62
+3.4%
17.1%US$110.00US$50.00US$62.7630
Aug ’24US$65.46
US$64.92
-0.8%
20.5%US$110.00US$50.00US$56.2730
Jul ’24US$63.62
US$64.25
+1.0%
20.4%US$110.00US$50.00US$56.7530
Jun ’24US$67.30
US$64.80
-3.7%
20.3%US$110.00US$50.00US$57.4030
May ’24US$51.97
US$82.83
+59.4%
17.5%US$110.00US$50.00US$60.9530
Apr ’24US$66.63
US$82.83
+24.3%
17.5%US$110.00US$50.00US$62.4530
Mar ’24US$65.74
US$83.33
+26.8%
17.2%US$110.00US$50.00US$60.4030
Feb ’24US$62.29
US$77.23
+24.0%
32.8%US$150.00US$44.00US$70.4432
Analyst Price Target
Consensus Narrative from 29 Analysts
US$130.03
Fair Value
13.4% overvalued intrinsic discount
29
Number of Analysts

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 Analysis2025/02/06 22:47
End of Day Share Price 2025/02/06 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.

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 Github.

Analyst Sources

Twilio Inc. is covered by 46 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