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What is a fair value for Twitter's shares
What is a fair value for Twitter's shares? Aswath Damodaran, a professor at New York University, has built a valuation model that assumes Twitter will scoop up around 5.5% of the online ad market by 2023, giving it revenues of $11.2 billion. His model also posits an operating margin of 25% for the company, which seems plausible given that of other internet firms that have grown fast. Based on his analysis, he reckons Twitter's shares are worth $17.84 each. Given the many uncertainties that still dog the company's business model, a price of around $18 a share seems reasonable. So based upon the new range of $23-$25 the shares are now starting to look very expensive. (VIEW LINK)
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Tom McKay is the Co-Founder and Managing Director of Livewire. Tom's passionate about democratising access to high quality investment ideas and insights, so all investors can make more informed and successful investment decisions.
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Tom McKay is the Co-Founder and Managing Director of Livewire. Tom's passionate about democratising access to high quality investment ideas and insights, so all investors can make more informed and successful investment decisions.
Expertise
Tom McKay is the Co-Founder and Managing Director of Livewire. Tom's passionate about democratising access to high quality investment ideas and insights, so all investors can make more informed and successful investment decisions.
Expertise
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