With Twitter’s pre-IPO price range rising by the hour and its oversubscription levels growing exponentially – matched only by the volume of “why you must buy Twitter” discussions on CNBC, Reuters created the following simple interactive calculator to enable the retail investor to ‘judge’ whether buying it out of the gate is the best use of your 401(k)…
The calculator estimates a value for Twitter. The key variables are the balance between US and non-US comparable companies and the balance between two different valuation methodologies.
US comparables are Facebook and LinkedIn, while non-US comps are Sina and Tencent (both Chinese). The valuation methods are price-to-forward-sales and price-per-monthly-user.
Additional variables include an IPO discount and the proportion of new shares that will be issued…
Click image for interactive calculator
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/oxFfvPHhq7I/story01.htm Tyler Durden