EquityZen's Blog On Startups and Their Economics

Twitter's S-1 Filing and Valuation Explained by Professor Aswath Damodoran

Phil Haslett | October 08, 2013

On the heels of Twitter's public S-1 filing on October 3rd last week, EquityZen took a look at the company's projections and recent financials to see what all the fuss was about. As we began outlining our analysis, we came across a study by a very respected authority: Aswath Damodaran from NYU's Stern School of Business.
Professor Damodaran has plenty of experience analyzing tech companies through their high-flying growth phases, and gracefully summarized Twitter's filing here. His conclusion?
...Twitter's revenues will reach $11.5 billion in 2023. That will be more than a twenty fold increase in revenues and translate into a revenue growth rate of 55% for the next 5 years, scaling down to stable growth (of 2.7%) in year 11.
Read the Damodaran study in full.

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