Stock Analysis on Net

Twitter Inc. (NYSE:TWTR)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel LibreOffice Calc

Current Valuation Ratios

Twitter Inc., current price multiples

Microsoft Excel LibreOffice Calc
Twitter Inc. Alphabet Inc. Charter Communications Inc. Comcast Corp. Meta Platforms Inc. Netflix Inc. Walt Disney Co. Media & Entertainment Communication Services
Selected Financial Data
Current share price (P) $36.85
No. shares of common stock outstanding 764,180,688
 
Earnings per share (EPS) $-0.29
Operating profit per share $-0.64
Sales per share $6.64
Book value per share (BVPS) $9.56
Valuation Ratios (Price Multiples)
Price to sales (P/S) 5.55 5.75 1.52 1.62 4.41 2.65 2.82 3.97 2.99
Price to book value (P/BV) 3.85 5.88 5.61 1.96 4.17 4.97 2.15 4.29 3.36

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Twitter Inc., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 20.69 19.57
Price to operating profit (P/OP) 2,149.42 82.78 52.03 633.05
Price to sales (P/S) 5.71 15.42 8.77 7.75 10.04
Price to book value (P/BV) 3.97 7.19 3.48 3.47 4.86

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).

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Twitter Inc. P/S ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Twitter Inc. P/BV ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Earnings (P/E)

Twitter Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 800,641,166 798,152,488 782,287,089 766,824,550 750,904,551
Selected Financial Data (US$)
Net income (loss) (in thousands) (221,409) (1,135,626) 1,465,659  1,205,596  (108,063)
Earnings per share (EPS)2 -0.28 -1.42 1.87 1.57 -0.14
Share price1, 3 36.24 71.79 38.77 30.76 32.66
Valuation Ratio
P/E ratio4 20.69 19.57
Benchmarks
P/E Ratio, Competitors5
Alphabet Inc. 25.74 34.65 28.96 25.92 59.34
Charter Communications Inc. 21.92 36.53 65.14 60.65 9.34
Comcast Corp. 16.01 22.37 15.39 14.11 8.70
Meta Platforms Inc. 16.44 25.89 32.31 21.51 35.20
Netflix Inc. 33.56 86.39 80.66 118.55 220.95
Walt Disney Co. 137.89 23.96 13.36 17.28
P/E Ratio, Sector
Media & Entertainment 24.16 37.46 28.65 22.86 26.98
P/E Ratio, Industry
Communication Services 21.28 37.52 24.76 19.89 17.66

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= -221,409,000 ÷ 800,641,166 = -0.28

3 Closing price as at the filing date of Twitter Inc. Annual Report.

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 36.24 ÷ -0.28 =

5 Click competitor name to see calculations.


Price to Operating Profit (P/OP)

Twitter Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 800,641,166 798,152,488 782,287,089 766,824,550 750,904,551
Selected Financial Data (US$)
Income (loss) from operations (in thousands) (492,739) 26,658  366,373  453,325  38,740 
Operating profit per share2 -0.62 0.03 0.47 0.59 0.05
Share price1, 3 36.24 71.79 38.77 30.76 32.66
Valuation Ratio
P/OP ratio4 2,149.42 82.78 52.03 633.05
Benchmarks
P/OP Ratio, Competitors5
Alphabet Inc. 24.86 33.85 29.05 30.27 28.74
Charter Communications Inc. 9.69 14.00 16.69 14.29 22.51
Comcast Corp. 10.89 13.47 9.51 8.71 10.98
Meta Platforms Inc. 13.84 23.10 24.90 19.10 27.76
Netflix Inc. 27.71 52.02 57.82 89.46 147.25
Walt Disney Co. 91.54 24.82 11.37 11.26
P/OP Ratio, Sector
Media & Entertainment 20.59 29.95 23.59 20.02 22.93
P/OP Ratio, Industry
Communication Services 17.35 25.33 17.95 16.15 17.44

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= -492,739,000 ÷ 800,641,166 = -0.62

3 Closing price as at the filing date of Twitter Inc. Annual Report.

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 36.24 ÷ -0.62 =

5 Click competitor name to see calculations.


Price to Sales (P/S)

Twitter Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 800,641,166 798,152,488 782,287,089 766,824,550 750,904,551
Selected Financial Data (US$)
Revenue (in thousands) 5,077,482  3,716,349  3,459,329  3,042,359  2,443,299 
Sales per share2 6.34 4.66 4.42 3.97 3.25
Share price1, 3 36.24 71.79 38.77 30.76 32.66
Valuation Ratio
P/S ratio4 5.71 15.42 8.77 7.75 10.04
Benchmarks
P/S Ratio, Competitors5
Alphabet Inc. 7.60 7.65 6.14 5.82 6.78
Charter Communications Inc. 1.97 2.45 2.37 1.71 2.22
Comcast Corp. 1.95 2.28 1.84 1.75 2.34
Meta Platforms Inc. 5.49 8.78 8.45 8.52 13.80
Netflix Inc. 5.78 9.54 7.47 9.09 10.56
Walt Disney Co. 4.08 4.13 3.81 2.83 2.81
P/S Ratio, Sector
Media & Entertainment 5.28 5.97 4.89 4.52 5.49
P/S Ratio, Industry
Communication Services 3.85 4.14 3.50 3.13 3.53

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 5,077,482,000 ÷ 800,641,166 = 6.34

3 Closing price as at the filing date of Twitter Inc. Annual Report.

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 36.24 ÷ 6.34 = 5.71

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Twitter Inc. P/S ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Book Value (P/BV)

Twitter Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 800,641,166 798,152,488 782,287,089 766,824,550 750,904,551
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 7,307,199  7,970,082  8,704,386  6,805,594  5,047,218 
Book value per share (BVPS)2 9.13 9.99 11.13 8.88 6.72
Share price1, 3 36.24 71.79 38.77 30.76 32.66
Valuation Ratio
P/BV ratio4 3.97 7.19 3.48 3.47 4.86
Benchmarks
P/BV Ratio, Competitors5
Alphabet Inc. 7.78 6.27 4.94 4.49 4.93
Charter Communications Inc. 7.26 4.94 3.46 2.06 2.36
Comcast Corp. 2.36 2.61 2.43 2.31 2.88
Meta Platforms Inc. 5.18 5.88 5.91 5.65 7.54
Netflix Inc. 10.83 21.56 19.86 27.41 34.48
Walt Disney Co. 3.11 3.23 2.98 3.45 3.76
P/BV Ratio, Sector
Media & Entertainment 5.70 5.41 4.50 4.29 4.96
P/BV Ratio, Industry
Communication Services 4.32 4.24 3.69 3.41 4.02

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 7,307,199,000 ÷ 800,641,166 = 9.13

3 Closing price as at the filing date of Twitter Inc. Annual Report.

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 36.24 ÷ 9.13 = 3.97

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Twitter Inc. P/BV ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.