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DCF Valuation
Base-case fair value
$6.65
Intrinsic $8.87 · 25% MOS
Current price: $188.11
Base-case summary
Our base-case DCF for Twilio Inc (TWLO) projects 10 years of free cash flow growth at 8.0% for years 1–5 and 4.0% for years 6–10, anchored to a default 8% growth assumption, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from the 3-year average of positive free cash flow ($5M) — TTM FCF was negative, this produces an intrinsic value of $8.87 per share. A 25% safety margin gives a fair value of $6.65, suggesting the stock is currently 96% overvalued against the $188.11 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
TTM FCF is negative ($0). Projecting from a negative base produces nonsensical results, so this model uses the 3-year average of positive FCF ($5M) as the base instead. Treat this valuation as a rough estimate — it assumes a return to historical profitability.
Model inputs
Free Cash Flow (3yr avg)
$5M
Cash & equivalents
$2.3B
Total debt
$1.1B
Shares outstanding
158M