Twitter Price to Sales vs. Beta

TWTR -  USA Stock  

USD 68.33  0.36  0.52%

For Twitter profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Twitter to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Twitter utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Twitter's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Twitter over time as well as its relative position and ranking within its peers. Additionally, take a look at World Market Map.

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As of 07/27/2021, Price to Sales Ratio is likely to grow to 5.34, while Return on Sales is likely to drop (0.13) . Twitter Operating Income is relatively stable at the moment as compared to the past year. Twitter reported last year Operating Income of 26.66 Million. As of 07/27/2021, Income Tax Expense is likely to grow to about 15.6 M, while Accumulated Other Comprehensive Income is likely to drop (81.7 M).

Twitter Revenues

4.01 BillionShare
The market value of Twitter is measured differently than its book value, which is the value of Twitter that is recorded on the company's balance sheet. Investors also form their own opinion of Twitter's value that differs from its market value or its book value, called intrinsic value, which is Twitter's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Twitter's market value can be influenced by many factors that don't directly affect Twitter underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Twitter's value and its price as these two are different measures arrived at by different means. Investors typically determine Twitter value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Twitter's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Twitter Beta vs. Price to Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Twitter's current stock value. Our valuation model uses many indicators to compare Twitter value to that of its competitors to determine the firm's financial worth.
Twitter is currently regarded as top stock in price to sales category among related companies. It is rated below average in beta category among related companies totaling about  0.05  of Beta per Price to Sales. The ratio of Price to Sales to Beta for Twitter is roughly  19.01 

Twitter Beta vs. Price to Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Twitter 
P/S 
 = 
MV Per Share 
Revenue Per Share 
14.07 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Twitter 
Beta 
 = 
Covariance 
Variance 
0.74
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Twitter Beta Comparison

Twitter is currently under evaluation in beta category among related companies.

Beta Analysis

Let's try to break down what Twitter's beta means in this case. As returns on the market increase, Twitter returns are expected to increase less than the market. However, during the bear market, the loss on holding Twitter will be expected to be smaller as well.

Twitter Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Twitter, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Twitter will eventually generate negative long term returns. The profitability progress is the general direction of Twitter's change in net profit over the period of time. It can combine multiple indicators of Twitter, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2021
Accumulated Other Comprehensive Income-79.6 M-81.7 M
Consolidated Income-525.4 M-566.9 M
Net Income-1.1 B-1.2 B
Net Income Common Stock-525.4 M-566.9 M
Operating Income26.7 M28.8 M
Preferred Dividends Income Statement Impact32.2 M32 M
Income Tax Expense14.4 M15.6 M
Net Income Per Employee-205.9 K-211.3 K
Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States, Japan, and internationally. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California. Twitter operates under Internet Content Information classification in the United States and is traded on New York Stock Exchange. It employs 6100 people.

Twitter Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Twitter. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Twitter position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Twitter's important profitability drivers and their relationship over time.

Use Twitter in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Twitter position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Twitter will appreciate offsetting losses from the drop in the long position's value.

Twitter Pair Trading

Twitter Pair Trading Analysis

Correlation analysis and pair trading evaluation for Twitter and Omnicom Group. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Use Investing Themes to Complement your Twitter position

In addition to having Twitter in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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ETFs
ETFs Theme
Public companies that diversify risk by investing across different stocks, funds, or indexes. ETFs theme has 20 constituents.
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Additionally, take a look at World Market Map. Note that the Twitter information on this page should be used as a complementary analysis to other Twitter's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Valuation module to check real value of public entities based on technical and fundamental data.

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To fully project Twitter's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Twitter at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Twitter's income statement, its balance sheet, and the statement of cash flows.
Potential Twitter investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Twitter investors may work on each financial statement separately, they are all related. The changes in Twitter's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Twitter's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.