Intrinsic value of Twitter - TWTR

Previous Close

$33.15

  Intrinsic Value

$1.26

stock screener

  Rating & Target

str. sell

-96%

Previous close

$33.15

 
Intrinsic value

$1.26

 
Up/down potential

-96%

 
Rating

str. sell

We calculate the intrinsic value of TWTR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 25.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  23.80
  21.92
  20.23
  18.71
  17.33
  16.10
  14.99
  13.99
  13.09
  12.28
  11.56
  10.90
  10.31
  9.78
  9.30
  8.87
  8.48
  8.14
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.21
  6.09
  5.98
  5.89
Revenue, $m
  3,025
  3,688
  4,434
  5,263
  6,176
  7,170
  8,245
  9,398
  10,629
  11,934
  13,313
  14,765
  16,287
  17,879
  19,542
  21,276
  23,081
  24,958
  26,911
  28,940
  31,048
  33,239
  35,517
  37,884
  40,346
  42,908
  45,575
  48,352
  51,245
  54,261
Variable operating expenses, $m
  3,434
  4,159
  4,976
  5,883
  6,882
  7,970
  9,146
  10,408
  11,755
  13,184
  14,569
  16,157
  17,823
  19,565
  21,385
  23,282
  25,257
  27,312
  29,449
  31,669
  33,976
  36,374
  38,866
  41,457
  44,151
  46,955
  49,873
  52,912
  56,078
  59,378
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  3,434
  4,159
  4,976
  5,883
  6,882
  7,970
  9,146
  10,408
  11,755
  13,184
  14,569
  16,157
  17,823
  19,565
  21,385
  23,282
  25,257
  27,312
  29,449
  31,669
  33,976
  36,374
  38,866
  41,457
  44,151
  46,955
  49,873
  52,912
  56,078
  59,378
Operating income, $m
  -409
  -472
  -542
  -620
  -706
  -800
  -901
  -1,010
  -1,126
  -1,249
  -1,256
  -1,392
  -1,536
  -1,686
  -1,843
  -2,006
  -2,177
  -2,354
  -2,538
  -2,729
  -2,928
  -3,135
  -3,349
  -3,573
  -3,805
  -4,047
  -4,298
  -4,560
  -4,833
  -5,117
EBITDA, $m
  57
  69
  83
  99
  116
  135
  155
  177
  200
  225
  251
  278
  307
  337
  368
  401
  435
  470
  507
  545
  585
  626
  669
  713
  760
  808
  858
  910
  965
  1,022
Interest expense (income), $m
  15
  108
  140
  177
  219
  266
  317
  373
  433
  497
  566
  640
  717
  798
  883
  973
  1,066
  1,163
  1,264
  1,369
  1,479
  1,592
  1,711
  1,833
  1,961
  2,094
  2,232
  2,375
  2,525
  2,680
  2,842
Earnings before tax, $m
  -517
  -612
  -719
  -839
  -972
  -1,117
  -1,274
  -1,443
  -1,624
  -1,816
  -1,895
  -2,109
  -2,334
  -2,570
  -2,816
  -3,072
  -3,340
  -3,618
  -3,907
  -4,208
  -4,520
  -4,845
  -5,183
  -5,534
  -5,899
  -6,278
  -6,673
  -7,084
  -7,513
  -7,960
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -517
  -612
  -719
  -839
  -972
  -1,117
  -1,274
  -1,443
  -1,624
  -1,816
  -1,895
  -2,109
  -2,334
  -2,570
  -2,816
  -3,072
  -3,340
  -3,618
  -3,907
  -4,208
  -4,520
  -4,845
  -5,183
  -5,534
  -5,899
  -6,278
  -6,673
  -7,084
  -7,513
  -7,960

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,346
  5,299
  6,370
  7,562
  8,873
  10,302
  11,846
  13,503
  15,271
  17,147
  19,128
  21,213
  23,400
  25,689
  28,078
  30,569
  33,162
  35,860
  38,665
  41,580
  44,609
  47,757
  51,029
  54,431
  57,969
  61,650
  65,481
  69,471
  73,628
  77,962
Adjusted assets (=assets-cash), $m
  4,346
  5,299
  6,370
  7,562
  8,873
  10,302
  11,846
  13,503
  15,271
  17,147
  19,128
  21,213
  23,400
  25,689
  28,078
  30,569
  33,162
  35,860
  38,665
  41,580
  44,609
  47,757
  51,029
  54,431
  57,969
  61,650
  65,481
  69,471
  73,628
  77,962
Revenue / Adjusted assets
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
Average production assets, $m
  1,745
  2,128
  2,558
  3,037
  3,563
  4,137
  4,757
  5,423
  6,133
  6,886
  7,682
  8,519
  9,397
  10,316
  11,276
  12,276
  13,318
  14,401
  15,527
  16,698
  17,915
  19,179
  20,493
  21,859
  23,280
  24,758
  26,297
  27,899
  29,568
  31,309
Working capital, $m
  520
  634
  763
  905
  1,062
  1,233
  1,418
  1,617
  1,828
  2,053
  2,290
  2,540
  2,801
  3,075
  3,361
  3,659
  3,970
  4,293
  4,629
  4,978
  5,340
  5,717
  6,109
  6,516
  6,940
  7,380
  7,839
  8,317
  8,814
  9,333
Total debt, $m
  2,338
  2,958
  3,654
  4,429
  5,281
  6,209
  7,213
  8,291
  9,440
  10,659
  11,947
  13,302
  14,724
  16,211
  17,764
  19,383
  21,069
  22,822
  24,646
  26,540
  28,510
  30,556
  32,683
  34,894
  37,193
  39,586
  42,076
  44,670
  47,372
  50,188
Total liabilities, $m
  2,825
  3,444
  4,141
  4,915
  5,767
  6,696
  7,700
  8,777
  9,926
  11,146
  12,434
  13,789
  15,210
  16,698
  18,251
  19,870
  21,555
  23,309
  25,132
  27,027
  28,996
  31,042
  33,169
  35,380
  37,680
  40,072
  42,563
  45,156
  47,858
  50,675
Total equity, $m
  1,521
  1,855
  2,230
  2,647
  3,106
  3,606
  4,146
  4,726
  5,345
  6,001
  6,695
  7,425
  8,190
  8,991
  9,827
  10,699
  11,607
  12,551
  13,533
  14,553
  15,613
  16,715
  17,860
  19,051
  20,289
  21,577
  22,918
  24,315
  25,770
  27,287
Total liabilities and equity, $m
  4,346
  5,299
  6,371
  7,562
  8,873
  10,302
  11,846
  13,503
  15,271
  17,147
  19,129
  21,214
  23,400
  25,689
  28,078
  30,569
  33,162
  35,860
  38,665
  41,580
  44,609
  47,757
  51,029
  54,431
  57,969
  61,649
  65,481
  69,471
  73,628
  77,962
Debt-to-equity ratio
  1.540
  1.590
  1.640
  1.670
  1.700
  1.720
  1.740
  1.750
  1.770
  1.780
  1.780
  1.790
  1.800
  1.800
  1.810
  1.810
  1.820
  1.820
  1.820
  1.820
  1.830
  1.830
  1.830
  1.830
  1.830
  1.830
  1.840
  1.840
  1.840
  1.840
Adjusted equity ratio
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -517
  -612
  -719
  -839
  -972
  -1,117
  -1,274
  -1,443
  -1,624
  -1,816
  -1,895
  -2,109
  -2,334
  -2,570
  -2,816
  -3,072
  -3,340
  -3,618
  -3,907
  -4,208
  -4,520
  -4,845
  -5,183
  -5,534
  -5,899
  -6,278
  -6,673
  -7,084
  -7,513
  -7,960
Depreciation, amort., depletion, $m
  466
  541
  625
  719
  823
  935
  1,057
  1,187
  1,326
  1,474
  1,506
  1,670
  1,843
  2,023
  2,211
  2,407
  2,611
  2,824
  3,045
  3,274
  3,513
  3,761
  4,018
  4,286
  4,565
  4,855
  5,156
  5,470
  5,798
  6,139
Funds from operations, $m
  -51
  -71
  -94
  -120
  -149
  -182
  -217
  -256
  -297
  -342
  -389
  -439
  -491
  -547
  -605
  -665
  -728
  -794
  -863
  -934
  -1,008
  -1,085
  -1,165
  -1,248
  -1,334
  -1,424
  -1,517
  -1,614
  -1,715
  -1,821
Change in working capital, $m
  100
  114
  128
  143
  157
  171
  185
  198
  212
  225
  237
  250
  262
  274
  286
  298
  310
  323
  336
  349
  363
  377
  392
  407
  424
  441
  459
  478
  498
  519
Cash from operations, $m
  -151
  -185
  -222
  -263
  -306
  -353
  -402
  -454
  -509
  -566
  -626
  -688
  -753
  -821
  -891
  -963
  -1,039
  -1,117
  -1,198
  -1,283
  -1,370
  -1,462
  -1,556
  -1,655
  -1,757
  -1,864
  -1,976
  -2,092
  -2,213
  -2,339
Maintenance CAPEX, $m
  -276
  -342
  -417
  -502
  -595
  -699
  -811
  -933
  -1,063
  -1,203
  -1,350
  -1,506
  -1,670
  -1,843
  -2,023
  -2,211
  -2,407
  -2,611
  -2,824
  -3,045
  -3,274
  -3,513
  -3,761
  -4,018
  -4,286
  -4,565
  -4,855
  -5,156
  -5,470
  -5,798
New CAPEX, $m
  -337
  -383
  -430
  -479
  -526
  -574
  -620
  -666
  -710
  -753
  -796
  -837
  -878
  -919
  -960
  -1,000
  -1,041
  -1,083
  -1,126
  -1,171
  -1,217
  -1,264
  -1,314
  -1,366
  -1,421
  -1,478
  -1,539
  -1,602
  -1,669
  -1,740
Cash from investing activities, $m
  -613
  -725
  -847
  -981
  -1,121
  -1,273
  -1,431
  -1,599
  -1,773
  -1,956
  -2,146
  -2,343
  -2,548
  -2,762
  -2,983
  -3,211
  -3,448
  -3,694
  -3,950
  -4,216
  -4,491
  -4,777
  -5,075
  -5,384
  -5,707
  -6,043
  -6,394
  -6,758
  -7,139
  -7,538
Free cash flow, $m
  -764
  -910
  -1,070
  -1,243
  -1,428
  -1,625
  -1,834
  -2,053
  -2,282
  -2,522
  -2,772
  -3,032
  -3,302
  -3,582
  -3,873
  -4,175
  -4,487
  -4,812
  -5,149
  -5,498
  -5,861
  -6,238
  -6,631
  -7,039
  -7,464
  -7,907
  -8,369
  -8,850
  -9,353
  -9,877
Issuance/(repayment) of debt, $m
  545
  619
  697
  775
  852
  929
  1,004
  1,077
  1,149
  1,219
  1,288
  1,355
  1,422
  1,487
  1,553
  1,619
  1,686
  1,754
  1,823
  1,895
  1,969
  2,046
  2,127
  2,211
  2,300
  2,393
  2,490
  2,593
  2,702
  2,817
Issuance/(repurchase) of shares, $m
  810
  945
  1,095
  1,257
  1,431
  1,617
  1,814
  2,023
  2,242
  2,472
  2,589
  2,839
  3,100
  3,370
  3,652
  3,944
  4,247
  4,562
  4,889
  5,228
  5,581
  5,947
  6,328
  6,724
  7,137
  7,566
  8,014
  8,481
  8,968
  9,476
Cash from financing (excl. dividends), $m  
  1,355
  1,564
  1,792
  2,032
  2,283
  2,546
  2,818
  3,100
  3,391
  3,691
  3,877
  4,194
  4,522
  4,857
  5,205
  5,563
  5,933
  6,316
  6,712
  7,123
  7,550
  7,993
  8,455
  8,935
  9,437
  9,959
  10,504
  11,074
  11,670
  12,293
Total cash flow (excl. dividends), $m
  591
  655
  721
  788
  855
  920
  985
  1,048
  1,109
  1,170
  1,104
  1,162
  1,219
  1,276
  1,332
  1,388
  1,446
  1,504
  1,564
  1,625
  1,689
  1,755
  1,824
  1,896
  1,972
  2,052
  2,136
  2,224
  2,317
  2,416
Retained Cash Flow (-), $m
  -810
  -945
  -1,095
  -1,257
  -1,431
  -1,617
  -1,814
  -2,023
  -2,242
  -2,472
  -2,589
  -2,839
  -3,100
  -3,370
  -3,652
  -3,944
  -4,247
  -4,562
  -4,889
  -5,228
  -5,581
  -5,947
  -6,328
  -6,724
  -7,137
  -7,566
  -8,014
  -8,481
  -8,968
  -9,476
Prev. year cash balance distribution, $m
  3,820
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  3,601
  -290
  -373
  -468
  -576
  -697
  -830
  -975
  -1,133
  -1,303
  -1,484
  -1,677
  -1,880
  -2,095
  -2,320
  -2,556
  -2,802
  -3,058
  -3,325
  -3,603
  -3,892
  -4,192
  -4,504
  -4,828
  -5,165
  -5,515
  -5,878
  -6,257
  -6,651
  -7,061
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  3,452
  -266
  -325
  -386
  -447
  -506
  -561
  -610
  -651
  -683
  -705
  -716
  -715
  -703
  -681
  -649
  -610
  -563
  -512
  -458
  -403
  -348
  -295
  -246
  -201
  -161
  -126
  -97
  -73
  -53
Current shareholders' claim on cash, %
  88.3
  78.5
  70.2
  63.0
  56.9
  51.5
  46.7
  42.6
  38.9
  35.6
  32.7
  30.2
  27.8
  25.7
  23.8
  22.0
  20.4
  18.9
  17.5
  16.2
  15.1
  14.0
  13.0
  12.1
  11.3
  10.5
  9.7
  9.1
  8.4
  7.9

Twitter, Inc. offers products and services for users, advertisers, developers and data partners. The Company's products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Its Twitter is a platform for public self-expression and conversation in real time. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser. Its Promoted Products enable its advertisers to promote their brands, products and services, amplify their visibility and reach, and extend the conversation around their advertising campaigns. Promoted Accounts appear in the same format and place as accounts suggested by its Who to Follow recommendation engine, or in some cases, in Tweets in a user's timeline. Promoted Trends appear at the top of the list of trending topics for an entire day in a particular country or on a global basis. Its MoPub is a mobile-focused advertising exchange. Twitter Audience Platform is an advertising offering.

FINANCIAL RATIOS  of  Twitter (TWTR)

Valuation Ratios
P/E Ratio -52.3
Price to Sales 9.5
Price to Book 5.2
Price to Tangible Book
Price to Cash Flow 31.3
Price to Free Cash Flow 44
Growth Rates
Sales Growth Rate 14.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -36.9%
Cap. Spend. - 3 Yr. Gr. Rate 23.6%
Financial Strength
Quick Ratio 47
Current Ratio 0
LT Debt to Equity 34.9%
Total Debt to Equity 36.6%
Interest Coverage -28
Management Effectiveness
Return On Assets -6.6%
Ret/ On Assets - 3 Yr. Avg. -9.3%
Return On Total Capital -7.5%
Ret/ On T. Cap. - 3 Yr. Avg. -10.2%
Return On Equity -10.2%
Return On Equity - 3 Yr. Avg. -13.6%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 63.1%
Gross Margin - 3 Yr. Avg. 66.2%
EBITDA Margin -0.9%
EBITDA Margin - 3 Yr. Avg. -12.1%
Operating Margin -14.5%
Oper. Margin - 3 Yr. Avg. -24.4%
Pre-Tax Margin -17.4%
Pre-Tax Margin - 3 Yr. Avg. -27.6%
Net Profit Margin -18.1%
Net Profit Margin - 3 Yr. Avg. -27.6%
Effective Tax Rate -3.6%
Eff/ Tax Rate - 3 Yr. Avg. -0.5%
Payout Ratio 0%

TWTR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TWTR stock intrinsic value calculation we used $2443.299 million for the last fiscal year's total revenue generated by Twitter. The default revenue input number comes from 0001 income statement of Twitter. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our TWTR stock valuation model: a) initial revenue growth rate of 23.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for TWTR is calculated based on our internal credit rating of Twitter, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Twitter.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of TWTR stock the variable cost ratio is equal to 114.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for TWTR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6% for Twitter.

Corporate tax rate of 27% is the nominal tax rate for Twitter. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the TWTR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for TWTR are equal to 57.7%.

Life of production assets of 5.1 years is the average useful life of capital assets used in Twitter operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for TWTR is equal to 17.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5047.218 million for Twitter - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 757.846 million for Twitter is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Twitter at the current share price and the inputted number of shares is $25.1 billion.

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