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Value Investing Professor Damodaran Weighs In on Twitter's Intrinsic Value
Posted by: Canadian Value (IP Logged)
Date: October 8, 2013 04:54PM
Professor Damodaran estimates that Twitter's intrinsic value is roughly $10 billion.
He thinks to justify that valuation Twitter needs to generate about $12 billion in revenue in a decade.
In reading the S-1 filing that goes along with the pending IPO Damodaran was surprised how much Twitter was spending in order to achieve the growth it is experiencing.
He thinks that spending is something Twitter investors will have to keep their eye on.
He would buy Twitter if the stock price resulted in roughly a $6 billion market cap.
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