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Based on the information given in the case, how would you estimate the value of Twitter at the time of the IPO based on a

  • Based on the information given in the case, how would you estimate the value of Twitter at the time of the IPO based on a simple average of comparable firm revenue multiples based on projected 2014 revenue?
  • Based on the information given in the case, how would you estimate the value of Twitter at the time of the IPO based on a simple average of comparable firm enterprise to EBITDA multiples based on projected 2014 EBITDA?
  • The valuation estimates in the preceding two questions are substantially different. What are the key assumptions underlying each valuation method? Be specific. How can an analyst combine the two valuation estimates assuming she believes the enterprise to EBITDA ratio is twice as reliable as the valuation based on a revenue multiple?
  • Scenarioanalysisinvolvesvaluingbusinessbasedondifferentsetsassumptionsaboutthefuture.Whataretheadvantagesanddisadvantagesofapplyingthismethodologyindetermininganappropriatepurchasepriceusingrelativevaluationmethodstoestimatefirmvalue?

Reading article link:https://books.google.com/books?id=PjFOBQAAQBAJ&pg=PA314&lpg=PA314&dq=Valuing+the+Twitter+IPO+DePamphilis&source=bl&ots=4zqY1HRFuh&sig=W-5atJ6xfhSZb9hDd2NwR9hWLn0&hl=zh-CN&sa=X&ved=0ahUKEwiWhvXCppvLAhXHdx4KHVAyDOgQ6AEIHTAA#v=onepage&q&f=false

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