Twilio Inc. (TWLO) DCF Valuation
Transparent DCF models put Twilio Inc. (TWLO)'s fair value in a range of $44.39 – $154.79 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $207.09 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $207.09, the market is pricing in roughly +25.6%/yr free-cash-flow growth over the next decade (at a 10% required return).
Current Price
$207.09
Fair-Value Range
$44.39 – $154.79
Market-Implied Growth
+25.6%/yr
TWLO DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $429.9M · 0.15B shares · net debt $310.0M
Estimated Fair Value
$44.39
-78.6% vs $207.09
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $207.09; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $55.66 | $58.62 | $62.12 | $66.31 | $71.44 |
| 9.0% | $47.52 | $49.54 | $51.88 | $54.60 | $57.82 |
| 10.0% | $41.32 | $42.76 | $44.39 | $46.25 | $48.40 |
| 11.0% | $36.45 | $37.50 | $38.68 | $40.01 | $41.51 |
| 12.0% | $32.52 | $33.31 | $34.19 | $35.16 | $36.25 |
About Twilio Inc.
Twilio Inc. offers a comprehensive cloud-based communications platform, empowering developers to build, scale, and manage customer engagement features directly within their software applications across both U.S. and international markets. Central to its customer engagement solution is a robust suite of application programming interfaces (APIs). These APIs streamline the complex communication logic required for various customer interactions and enable developers to seamlessly integrate voice, messaging, video, and email functionalities into their applications. Established in 2008, Twilio's corporate headquarters are located in San Francisco, California.
- Sector
- Technology
- Industry
- Software - Infrastructure
- CEO
- Khozema Z. Shipchandler