Twilio Inc. (TWLO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-33.6%

$142.58

vs $214.63 price

Levered DCF

$172.84

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

9.76

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	646.55×	-163.76×	-13.69×	-7.14×	-48.32×	-101.04×	-41.64×	-70.87×
P/B	2.78×	2.25×	1.43×	0.85×	4.16×	5.88×	2.99×	19.79×
P/S	4.29×	4.02×	3.35×	2.34×	16.14×	28.19×	11.27×	13.34×
EV / EBITDA	81.31×	158.66×	-20.23×	-9.9×	-65.01×	-143.73×	-50.78×	-96.74×
Gross margin	48.9%	51.1%	49.2%	47.4%	48.9%	52.0%	53.7%	53.7%
Operating margin	3.4%	-0.9%	-9.4%	-26.9%	-32.2%	-28.0%	-32.6%	-17.7%
Net margin	0.7%	-2.5%	-24.4%	-32.8%	-33.4%	-27.9%	-27.1%	-18.8%
Current ratio	4.03×	4.2×	6.64×	6.17×	8.43×	7.52×	8.34×	6.33×
Debt / equity	0.14×	0.14×	0.12×	0.12×	0.12×	0.07×	0.15×	1×
Interest coverage	0×	0×	0×	0×	0×	-19.73×	-14.75×	-7.73×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	0.4%	-1.4%	-10.4%	-11.9%	-8.6%	-5.8%	-7.2%	-27.8%
Return on invested capital	1.2%	-0.4%	-3.6%	-8.7%	-7.3%	-5.3%	-6.3%	-12.9%
Return on assets	0.3%	-1.1%	-8.7%	-10.0%	-7.3%	-5.2%	-6.0%	-11.9%
Free cash flow yield	4.7%	3.7%	2.6%	-3.7%	-0.3%	-0.1%	-0.4%	-0.2%
Earnings yield	0.2%	-0.6%	-7.3%	-14.0%	-2.1%	-1.0%	-2.4%	-1.4%
Enterprise value	$22.2B	$18.6B	$14.4B	$9.5B	$45.7B	$49.3B	$13.2B	$8.6B
Net debt / EBITDA	1.46×	5.87×	-0.71×	-0.61×	0.27×	0.95×	-1.49×	0.57×
Cash conversion cycle (days)	34	31	29	30	26	26	22	32