Financial Modeling & Valuation of Twitter/X

Build a professional integrated financial model in Excel for Twitter's income statement. Learn to link revenue drivers, forecast five years, and compute valuation.

Analyze the income statement by estimating cost of revenues using five-year averages and percentage of sales, compute operating expenses, determine operating and pre-tax income, and project taxes and net income.

Learn to interpret the cash flow statement, quantify net cash from operating, investing, and financing activities, and assess free cash flow for dcf-based valuation.

Analyze how purchases, maturities, and sales of marketable securities affect cash flow and balance sheet assumptions, using depreciation, deferred income tax, and short term investments to project future cash movements.

Analyze cash flow from operations by examining non-cash costs, impairment and amortization of investments, and net working capital changes from accounts receivable, payable, prepaid expenses, and leases.

Map the balance sheet from schedules, tracing net income through the cash flow and into assets and liabilities, including operating lease right-of-use items and cash, investments, and working capital.

Build a robust balance sheet for financial modeling by linking capex and depreciation, working capital, and operating lease right-of-use assets across schedules, while ensuring balance with liabilities and equity.

Model revenue by segment: advertising and data licensing in the United States and rest of world. Connect debt and interest schedules with working capital to the income statement.

Trace debt and capital lease dynamics, including long- and short-term debt, opening and closing balances, cash flow proceeds, repayments, and ending debt and interest under a flat balance assumption.

Assess debt and capital lease by linking income statement, balance sheet, and debt schedule; evaluate realistic interest rates, maturity profiles, and short-term versus long-term debt.

Explore how to build a shares outstanding schedule in corporate modeling, detailing average basic and diluted shares, shares issued and repurchased, stock-based compensation, and dilution effects.

Explore how basic and diluted shares affect eps, trace shares outstanding through the income statement and cash flow statement, and examine stock-based compensation's impact on dcf and valuation.

Build a from-scratch working capital schedule from the balance sheet, focusing on short-term items like accounts receivable and accounts payable, and calculate net working capital.

Build a working capital schedule by establishing basic and supporting line items and applying assumptions like accounts receivable net collection period (R days) and accounts payable days.

Estimate accounts receivable and accounts payable days in a working capital schedule, modeling a decreasing net collection period and a conservative 0.13 prepaid expense rate.

Analyze accrued liabilities as a percentage of COGS and populate accounts receivable, accounts payable, prepaid expenses, and operating lease right-of-use assets to project net working capital and balance sheet.

Explore the capex and depreciation schedule, linking sales and capex as a percentage of sales, calculating depreciation, and projecting opening, ending, and accumulated figures for property, plant, and equipment.

Populate and project the amortization schedule by linking capex to depreciation and amortization, compute accumulated depreciation and amortization, and trace their flow into the cash flow, income, and balance sheet.

Compute the discounted cash flow to value the company by calculating the weighted average cost of capital, cost of equity, and cost of debt using CAPM and the risk-free rate.

Define beta as a measure of risk and show how a stock moves with market; estimate cost of equity using CAPM with 1.65% risk-free rate and 4.45% market risk premium.

Compute the cost of equity and debt using CAPM, derive WACC for Twitter/X, and explore debt ratios, taxes, and key valuation measures like perpetual growth and terminal value.

Calculate unlevered free cash flow and a simple method from operating activities minus capex, and prepare revenue forecasts, EBITDA adjustments, and terminal value for Twitter/X.

Calculate discounted cash flows using unlevered free cash flows, apply the Gordon growth model for terminal value, and compute enterprise value, equity value, and value per share.

Derive equity value and equity value per share from discounted cash flows and terminal value. Analyze implied EBITDA multiples and run sensitivity and scenario analyses.

Build a twitter/x valuation model using wacc and perpetual growth rate sensitivities, with a data table mapping equity value across scenarios.