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Last updated: November 5, 2013 12:58 pm

Twitter valuation calculator

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Twitter is going public and has been valued at $18bn. But what do you think it is worth?

Enter your projections for Twitter’s sales growth, profitability, capital expenditures, terminal growth rate and cost of capital in our IPO calculator below to see how key assumptions affect the potential market value of the social networking company’s offering. You can then share your valuation with others by clicking the “Tweet your result” button.

Look at page 61 in the IPO prospectus, which shows Twitter’s historical financial results, to help guide your selection of inputs.

This interactive calculator uses a basic two-step discounted cash flow model to help illustrate how variations in key assumptions can change the potential market value and share price of Twitter. It is not an accurate valuation tool.

The calculation assumes that Twitter will be paying around 30 per cent tax every year on its earnings.

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