Twilio Inc.

NYSE:TWLO Stock Report

Market Cap: US$14.8b

Twilio Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ($96.59) is trading below our estimate of fair value ($112.62)

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 Ratio3.4x
SalesUS$4.34b
Market CapUS$14.82b

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 Average6.4x
AKAM Akamai Technologies
3.3x6.9%US$13.1b
VRSN VeriSign
11.3x3.7%US$17.4b
OKTA Okta
5.1x10.5%US$12.5b
WIX Wix.com
6.1x11.4%US$10.1b
TWLO Twilio
3.4x7.2%US$14.8b

Price-To-Sales vs Peers: TWLO is good value based on its Price-To-Sales Ratio (3.4x) compared to the peer average (6.4x).

Price to Sales Ratio vs Industry

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

26 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.4x1.7%US$6.49b
DXC DXC Technology
0.3x-1.9%US$3.77b
RXT Rackspace Technology
0.2x0.7%US$550.72m
UIS Unisys
0.3x3.4%US$519.53m
TWLO 3.4xIndustry Avg. 2.1xNo. of Companies26PS0246810+
26 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TWLO is expensive based on its Price-To-Sales Ratio (3.4x) compared to the US IT industry average (2.1x).

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 Ratio3.4x
Fair PS Ratio4.3x

Price-To-Sales vs Fair Ratio: TWLO is good value based on its Price-To-Sales Ratio (3.4x) compared to the estimated Fair Price-To-Sales Ratio (4.3x).

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$96.59
US$83.02
-14.0%
17.5%US$120.00US$50.00n/a26
Nov ’25US$84.84
US$79.84
-5.9%
15.9%US$110.00US$50.00n/a26
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$50.00n/a29
Jan ’25US$75.87
US$70.31
-7.3%
17.9%US$110.00US$50.00n/a30
Dec ’24US$66.76
US$67.74
+1.5%
16.8%US$110.00US$50.00n/a30
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
Jan ’24US$48.96
US$80.03
+63.5%
32.2%US$150.00US$44.00US$75.8732
Dec ’23US$49.44
US$80.16
+62.1%
32.1%US$150.00US$44.00US$66.7632
Nov ’23US$75.08
US$121.66
+62.0%
22.3%US$175.00US$80.00US$50.4932

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

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