1.Twitter got its start in 2006, first with Jack Dorsey and then Evan Williams as CEO. In 2013, its CEO was Dick Costolo, a former Google executive, who steered the firm through one of the most exciting times in the firm's young life. Since its inception, the social network that lets users send short messages or "tweets" 140 characters in length has attracted world leaders, religious icons, and celebrities as well as CEOs, marketers, and self-promoters. When the firm was in anticipation of going IPO in November 2013, It had 230 million users with three quarters outside the United States.

How would you choose the comps to value Twitter at the time of IPO?

2.For Twitter valuation, the investment banking team estimated the multiples for three comps, Facebook, LinkedIn, and Yelp, based on the comps' projected 2014 revenue and projected 2014 EBITDA and the market price prior to the Twitter IPO.

Describe how you would proceed to estimate the EV/EBITDA multiples for the comps:

- Where to find and retrieve the data

- Which equation to use

- What the inputs are

- How to estimate

3.As shown in the valuation based on the EV multiples model, the estimated intrinsic value of Twitter based on EV/EBITDA multiple vs. EV/Sales multiple are substantially different. What might explain such a difference?

4.For the Twitter IPO deal, the investment banking team used the forward multiples based on projected NTM EBITDA or sales of comparable companies.

What are the pros and cons of using forward multiples.