Twitter Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Net noncash charges	849,065)	2,153,091)	(180,995)	44,793)	971,511)
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions	5,033)	(24,595)	18,700)	89,322)	(32,239)
Net cash provided by operating activities	632,689)	992,870)	1,303,364)	1,339,711)	831,209)
Interest paid in cash, net of tax¹	22,489)	30,423)	9,666)	11,492)	9,094)
Interest costs capitalized, net of tax²	808)	3,002)	3,634)	2,923)	2,340)
Purchases of property and equipment	(1,011,546)	(873,354)	(540,688)	(483,934)	(160,742)
Proceeds from sales of property and equipment	8,462)	9,170)	6,158)	13,070)	2,783)
Free cash flow to the firm (FCFF)	(347,098)	162,111)	782,134)	883,262)	684,684)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Twitter Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Twitter Inc. FCFF decreased from 2019 to 2020 and from 2020 to 2021.

Twitter Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	46.14%	21.00%	21.00%	21.00%	35.00%
Interest Paid, Net of Tax
Interest paid in cash, before tax	41,754)	38,510)	12,236)	14,547)	13,990)
Less: Interest paid in cash, tax²	19,265)	8,087)	2,570)	3,055)	4,897)
Interest paid in cash, net of tax	22,489)	30,423)	9,666)	11,492)	9,094)
Interest Costs Capitalized, Net of Tax
Interest costs capitalized, before tax	1,500)	3,800)	4,600)	3,700)	3,600)
Less: Interest costs capitalized, tax³	692)	798)	966)	777)	1,260)
Interest costs capitalized, net of tax	808)	3,002)	3,634)	2,923)	2,340)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ See details »

² 2021 Calculation
Interest paid in cash, tax = Interest paid in cash × EITR
= 41,754 × 46.14% = 19,265

³ 2021 Calculation
Interest costs capitalized, tax = Interest costs capitalized × EITR
= 1,500 × 46.14% = 692

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Twitter Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	27,964,121)
Free cash flow to the firm (FCFF)	(347,098)
Valuation Ratio
EV/FCFF	—
Benchmarks
EV/FCFF, Competitors¹
Alphabet Inc.	27.27
Comcast Corp.	16.00
Meta Platforms Inc.	27.49
Netflix Inc.	32.79
Walt Disney Co.	36.98
EV/FCFF, Sector
Media & Entertainment	29.31
EV/FCFF, Industry
Communication Services	35.42

Based on: 10-K (reporting date: 2021-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Twitter Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	26,874,573)	53,314,370)	26,222,699)	20,098,812)	21,915,185)
Free cash flow to the firm (FCFF)²	(347,098)	162,111)	782,134)	883,262)	684,684)
Valuation Ratio
EV/FCFF³	—	328.88	33.53	22.76	32.01
Benchmarks
EV/FCFF, Competitors⁴
Alphabet Inc.	27.17	29.53	28.19	—	—
Comcast Corp.	15.77	20.50	18.00	—	—
Meta Platforms Inc.	15.40	29.48	25.83	—	—
Netflix Inc.	335.37	95.41	—	—	—
Walt Disney Co.	78.66	63.77	143.18	18.02	—
EV/FCFF, Sector
Media & Entertainment	24.79	31.56	32.03	—	—
EV/FCFF, Industry
Communication Services	31.50	25.72	24.63	—	—

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 26,874,573 ÷ -347,098 = —

⁴ Click competitor name to see calculations.

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Twitter Inc. (NYSE:TWTR)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical