TWLO — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($123.81)
DCF	$196.91	+59.0%
Graham Number	$15.57	-87.4%
Reverse DCF	—	implied g: 5.8%
DDM	—	—
EV/EBITDA	$123.73	-0.1%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $943.91M

Near-term growth (yrs 1–5)(%)Rev: 14.3% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.88%

Computed WACC: 10.88%

Cost of equity (Re)11.50%(Rf 4.30% + β 1.31 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)94.61%

Debt weight (D/V)5.39%

Results

Intrinsic Value / share$150.51

Current Price$123.81

Upside / Downside+21.6%

Net Debt (used)-$1.39B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	6.3%	10.3%	14.3%	18.3%	22.3%
7.0%	$207.77	$245.47	$288.86	$338.59	$395.31
8.0%	$169.68	$199.70	$234.23	$273.75	$318.80
9.0%	$143.42	$168.17	$196.59	$229.10	$266.13
10.0%	$124.26	$145.16	$169.14	$196.55	$227.75
11.0%	$109.67	$127.66	$148.28	$171.82	$198.59

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $0.21

Book Value / share($)Yahoo: $51.32

Results

Graham Number$15.57

Current Price$123.81

Margin of Safety-87.4%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.88%

Terminal growth rate(%)

Computed WACC: 10.88%

Cost of equity (Re)11.50%(Rf 4.30% + β 1.31 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)94.61%

Debt weight (D/V)5.39%

Results

Current Price$123.81

Implied Near-term FCF Growth10.5%

Historical Revenue Growth14.3%

Historical Earnings Growth—

Base FCF (TTM)$943.91M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$123.81

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $370.61M

Target EV/EBITDA multipleCurrent: 46.9×

Net Debt($B)Default: -$1.39B

Results

Implied Equity Value / share$123.73

Current Price$123.81

Upside / Downside-0.1%

Implied EV$17.37B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$1.39B	-$1.39B	-$1.39B	-$1.39B	-$1.39B
42.9x	$113.95	$113.95	$113.95	$113.95	$113.95
44.9x	$118.84	$118.84	$118.84	$118.84	$118.84
46.9x	$123.73	$123.73	$123.73	$123.73	$123.73
48.9x	$128.62	$128.62	$128.62	$128.62	$128.62
50.9x	$133.51	$133.51	$133.51	$133.51	$133.51

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