TWLO PE Ratio & Valuation,Is TWLO Overvalued

TWLO Relative Valuation

TWLO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TWLO is overvalued; if below, it's undervalued.

Historical Valuation

Twilio Inc (TWLO) is now in the Undervalued zone, suggesting that its current forward PS ratio of 3.78 is considered Undervalued compared with the five-year average of -405.78. The fair price of Twilio Inc (TWLO) is between 134.97 to 160.47 according to relative valuation methord. Compared to the current price of 133.89 USD , Twilio Inc is Undervalued By 0.8%.

Relative Value

Fair Zone

134.97-160.47

Current Price：133.89

0.8%

Undervalued

25.79

16.76

EV/EBITDA

Twilio Inc. (TWLO) has a current EV/EBITDA of 16.76. The 5-year average EV/EBITDA is 70.79. The thresholds are as follows: Strongly Undervalued below -117.10, Undervalued between -117.10 and -23.15, Fairly Valued between 164.74 and -23.15, Overvalued between 164.74 and 258.69, and Strongly Overvalued above 258.69. The current Forward EV/EBITDA of 16.76 falls within the Historic Trend Line -Fairly Valued range.

18.82

EV/EBIT

Twilio Inc. (TWLO) has a current EV/EBIT of 18.82. The 5-year average EV/EBIT is -631.76. The thresholds are as follows: Strongly Undervalued below -3259.50, Undervalued between -3259.50 and -1945.63, Fairly Valued between 682.12 and -1945.63, Overvalued between 682.12 and 1995.99, and Strongly Overvalued above 1995.99. The current Forward EV/EBIT of 18.82 falls within the Historic Trend Line -Fairly Valued range.

3.78

Twilio Inc. (TWLO) has a current PS of 3.78. The 5-year average PS is 6.91. The thresholds are as follows: Strongly Undervalued below -7.32, Undervalued between -7.32 and -0.20, Fairly Valued between 14.03 and -0.20, Overvalued between 14.03 and 21.14, and Strongly Overvalued above 21.14. The current Forward PS of 3.78 falls within the Historic Trend Line -Fairly Valued range.

18.97

P/OCF

Twilio Inc. (TWLO) has a current P/OCF of 18.97. The 5-year average P/OCF is -6.91. The thresholds are as follows: Strongly Undervalued below -3653.65, Undervalued between -3653.65 and -1830.28, Fairly Valued between 1816.47 and -1830.28, Overvalued between 1816.47 and 3639.84, and Strongly Overvalued above 3639.84. The current Forward P/OCF of 18.97 falls within the Historic Trend Line -Fairly Valued range.

19.87

P/FCF

Twilio Inc. (TWLO) has a current P/FCF of 19.87. The 5-year average P/FCF is -241.76. The thresholds are as follows: Strongly Undervalued below -1104.01, Undervalued between -1104.01 and -672.89, Fairly Valued between 189.36 and -672.89, Overvalued between 189.36 and 620.49, and Strongly Overvalued above 620.49. The current Forward P/FCF of 19.87 falls within the Historic Trend Line -Fairly Valued range.

Twilio Inc (TWLO) has a current Price-to-Book (P/B) ratio of 2.56. Compared to its 3-year average P/B ratio of 1.51 , the current P/B ratio is approximately 70.08% higher. Relative to its 5-year average P/B ratio of 2.53, the current P/B ratio is about 1.11% higher. Twilio Inc (TWLO) has a Forward Free Cash Flow (FCF) yield of approximately 4.13%. Compared to its 3-year average FCF yield of 2.87%, the current FCF yield is approximately 43.80% lower. Relative to its 5-year average FCF yield of 1.47% , the current FCF yield is about 181.62% lower.

2.58

P/B

Median3y

1.51

Median5y

2.53

4.13

FCF Yield

Median3y

2.87

Median5y

1.47

Competitors Valuation Multiple

The average P/S ratio for TWLO's competitors is 2.90, providing a benchmark for relative valuation. Twilio Inc Corp (TWLO) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of 14.71%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TWLO increased by 23.95% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 58.05 to 314.51.

The secondary factor is the Revenue Growth, contributed 14.71%to the performance.

Overall, the performance of TWLO in the past 1 year is driven by P/E Change. Which is more unsustainable.

14.71%

1.13B → 1.30B

Revenue Growth

-432.56%

-0.86 → 2.86

Margin Expansion

441.80%

58.05 → 314.51

P/E Change

23.95%

108.08 → 133.96

Mkt Cap Growth

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Frequently Asked Questions

Is Twilio Inc (TWLO) currently overvalued or undervalued?

What is Twilio Inc (TWLO) fair value?

TWLO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Twilio Inc (TWLO) is between 134.97 to 160.47 according to relative valuation methord.

How does TWLO's valuation metrics compare to the industry average?

The average P/S ratio for TWLO's competitors is 2.90, providing a benchmark for relative valuation. Twilio Inc Corp (TWLO) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 14.71%, this premium appears unsustainable.

What is the current P/B ratio for Twilio Inc (TWLO) as of Dec 16 2025?

As of Dec 16 2025, Twilio Inc (TWLO) has a P/B ratio of 2.56. This indicates that the market values TWLO at 2.56 times its book value.

What is the current FCF Yield for Twilio Inc (TWLO) as of Dec 16 2025?

As of Dec 16 2025, Twilio Inc (TWLO) has a FCF Yield of 4.13%. This means that for every dollar of Twilio Inc’s market capitalization, the company generates 4.13 cents in free cash flow.

What is the current Forward P/E ratio for Twilio Inc (TWLO) as of Dec 16 2025?

As of Dec 16 2025, Twilio Inc (TWLO) has a Forward P/E ratio of 25.59. This means the market is willing to pay $25.59 for every dollar of Twilio Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Twilio Inc (TWLO) as of Dec 16 2025?

As of Dec 16 2025, Twilio Inc (TWLO) has a Forward P/S ratio of 3.78. This means the market is valuing TWLO at $3.78 for every dollar of expected revenue over the next 12 months.

TWLO Valuation