GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Value Investing Professor Damodaran Weighs In on Twitter's Intrinsic Value

October 08, 2013 | About:
Canadian Value

Canadian Value

123 followers
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.



About the author:

Canadian Value
http://valueinvestorcanada.blogspot.com/

Rating: 1.3/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK