Latest Ratios: P/E Ratio 1384.3x · EV/EBITDA 120.3x · ROE 0.4%. (2013–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $44.1B | $22.7B | $17.9B | $13.9B | $9.0B | $45.9B | $49.7B | $12.8B | $8.7B | $2.2B | $2.6B |
| Enterprise Value | $44.5B | $23.1B | $18.6B | $14.4B | $9.5B | $45.7B | $49.3B | $13.2B | $8.6B | $2.0B | $2.3B |
| P/E Ratio → | 1384.29 | 677.33 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 8.71 | 4.49 | 4.02 | 3.35 | 2.34 | 16.14 | 28.19 | 11.27 | 13.34 | 5.40 | 9.22 |
| P/B Ratio | 5.94 | 2.91 | 2.25 | 1.43 | 0.85 | 4.16 | 5.88 | 2.99 | 19.79 | 5.98 | 7.76 |
| P/FCF | 42.71 | 22.00 | 27.28 | 38.26 | — | — | — | — | — | — | — |
| P/OCF | 42.47 | 21.88 | 25.04 | 33.54 | — | — | 1520.82 | 910.06 | 1086.53 | — | 253.34 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.56 | 4.18 | 3.47 | 2.50 | 16.07 | 28.00 | 11.61 | 13.27 | 5.11 | 8.12 |
| EV / EBITDA | 120.28 | 62.49 | 112.49 | — | — | — | — | — | — | — | — |
| EV / EBIT | 254.86 | 419.78 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 22.39 | 28.32 | 39.65 | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.9% | 48.9% | 51.1% | 49.2% | 47.4% | 48.9% | 52.0% | 53.7% | 53.7% | 54.2% | 56.5% |
| Operating Margin | 3.4% | 3.4% | -0.9% | -9.4% | -26.9% | -32.2% | -28.0% | -32.6% | -17.7% | -16.6% | -14.9% |
| Net Profit Margin | 0.7% | 0.7% | -2.5% | -24.4% | -32.8% | -33.4% | -27.9% | -27.1% | -18.8% | -16.0% | -14.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 0.4% | 0.4% | -1.2% | -10.0% | -11.6% | -9.8% | -7.7% | -13.0% | -30.6% | -18.5% | -18.5% |
| ROA | 0.3% | 0.3% | -1.0% | -8.4% | -9.8% | -8.4% | -6.7% | -9.9% | -16.5% | -14.8% | -14.5% |
| ROIC | 1.6% | 1.6% | -0.3% | -2.7% | -7.0% | -7.2% | -5.8% | -11.0% | -27.3% | -36.9% | -196.3% |
| ROCE | 1.9% | 1.9% | -0.4% | -3.4% | -8.6% | -8.6% | -7.1% | -12.8% | -18.3% | -18.6% | -18.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.14 | 0.14 | 0.14 | 0.12 | 0.12 | 0.12 | 0.07 | 0.15 | 1.00 | — | — |
| Debt / EBITDA | 2.92 | 2.92 | 6.71 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.05 | 0.09 | 0.05 | 0.06 | -0.02 | -0.04 | 0.09 | -0.12 | -0.32 | -0.93 |
| Net Debt / EBITDA | 1.08 | 1.08 | 4.16 | — | — | — | — | — | — | — | — |
| Debt / FCF | — | 0.39 | 1.05 | 1.39 | — | — | — | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | -19.73 | -14.75 | -7.73 | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.03 | 4.03 | 4.20 | 6.64 | 6.17 | 8.43 | 7.52 | 8.34 | 6.33 | 4.50 | 4.79 |
| Quick Ratio | 4.03 | 4.03 | 4.20 | 6.64 | 6.17 | 8.43 | 7.52 | 8.34 | 6.33 | 4.50 | 4.79 |
| Cash Ratio | 2.79 | 2.79 | 2.91 | 5.43 | 5.14 | 7.62 | 6.78 | 7.49 | 5.43 | 3.70 | 4.15 |
| Asset Turnover | — | 0.52 | 0.45 | 0.36 | 0.30 | 0.22 | 0.19 | 0.22 | 0.63 | 0.89 | 0.67 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 45.87 | 48.19 | 49.45 | 52.23 | 49.86 | 52.04 | 49.57 | 54.86 | 39.44 | 34.49 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.1% | 0.1% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 2.3% | 4.5% | 3.7% | 2.6% | — | — | — | — | — | — | — |
| Buyback Yield | 2.0% | 3.8% | 13.0% | 4.8% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.0% | 3.8% | 13.0% | 4.8% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $160M | $166M | $183M | $183M | $174M | $147M | $130M | $97M | $91M | $89M |
Includes 30+ ratios · 13 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TWLO stock.
Twilio Inc.'s current P/E ratio is 1384.3x. This places it at the 50th percentile of its historical range.
Twilio Inc.'s current EV/EBITDA is 120.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 62.5x.
Twilio Inc.'s return on equity (ROE) is 0.4%. The historical average is -21.8%.
Based on historical data, Twilio Inc. is trading at a P/E of 1384.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Twilio Inc. has 48.9% gross margin and 3.4% operating margin.
Twilio Inc.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
SBC dilution and goodwill concentration
Metrics are mathematically derived from official filings.
Margin Recovery Masks Structural Shift
Operating margin swung from -4.2% in 2024Q1 to 5.6% in 2026Q2, per reported financials, while gross margin compressed from 52.0% to 48.4%, indicating a trade-off between efficiency gains and product mix.
The operating margin improvement reflects disciplined cost control, with combined R&D and SG&A falling from 57.7% to 40.6% of revenue over the same period. However, gross margin erosion suggests a deliberate shift toward lower-margin communications revenue, which may limit future profitability expansion. Net margin volatility, including a 71.2% spike in 2026Q2 due to a one-time gain, obscures the underlying earnings power; investors should focus on operating margin as the cleaner profitability gauge.
ROIC Inflection Signals Efficiency Gains
ROIC improved from -0.3% in 2024Q1 to 0.8% in 2026Q2, per reported figures, while ROE jumped to 12.7% in 2026Q2, suggesting that capital efficiency is beginning to inflect positively.
The steady climb in ROIC from negative territory to positive, albeit still low, indicates that Twilio is generating returns above its cost of capital for the first time in recent quarters. The sharp ROE spike in 2026Q2 is distorted by the one-time gain, but the underlying trend in ROIC reflects improving asset turnover and margin expansion. With an asset-light model and minimal debt, the return on capital is driven primarily by operating efficiency rather than financial leverage, which bodes well for sustainable compounding if revenue growth persists.
Working Capital Drag Persists
DSO remained stable near 45 days over the last ten quarters, per reported data, while DPO fell from 18 to 10 days, indicating that Twilio is paying suppliers faster and collecting receivables at a steady pace.
The stable DSO suggests consistent customer payment behavior, but the decline in DPO from 18 to 10 days implies a reduction in supplier financing, which may reflect improved vendor relationships or a shift in payment terms. Working capital changes were negative in eight of the last ten quarters, per prior analysis, indicating that operational cash flow is being absorbed by receivables and other working capital needs. This drag, combined with minimal inventory (DIO not reported), highlights that Twilio's efficiency gains are coming from cost control rather than working capital optimization.
Near-Zero Debt Enhances Flexibility
Debt-to-equity fell from 0.14 in 2025Q1 to 0.01 in 2026Q2, per balance sheet data, while D/EBITDA dropped from 118.27 to 0.49, indicating a dramatic deleveraging and minimal financial risk.
Twilio's total debt declined from $1.1B to $72.4M over the period, per prior analysis, leaving the company virtually debt-free. This provides substantial strategic flexibility for acquisitions, buybacks, or investment in growth initiatives without the burden of interest expense. The absence of interest coverage data is consistent with minimal debt, and the low leverage suggests that refinancing risk is negligible. However, the large goodwill balance ($5.3B) remains a potential source of future impairment, which could impact equity but not debt service.
Ample Liquidity Buffer Remains
Current ratio improved to 4.62 in 2026Q2 from 4.03 in 2025Q4, per reported figures, with cash at $823.3M, indicating a robust liquidity position that can withstand operational volatility.
The current ratio, which is identical to the quick ratio due to negligible inventory, has remained above 4.0 for the past ten quarters, reflecting a strong buffer of cash and short-term investments. This liquidity cushion provides resilience against potential cash flow volatility from working capital swings or one-time charges. Even under a severe stress scenario, the near-zero debt and high current ratio suggest that Twilio could fund operations without external financing, though the negative working capital impacts in recent quarters warrant monitoring.
P/E Misleads on Earnings Power
Twilio's trailing P/E of 1190.76 is distorted by a one-time gain in 2026Q2, per reported financials, while forward P/E of 43.74 better reflects normalized earnings, but EV/EBITDA of 103.62 still implies high growth expectations.
The trailing P/E is virtually meaningless due to the volatile net income, which swung from -$55.3M to $1.1B in a single quarter. Investors should instead use EV/EBITDA or forward P/E, but even the forward EV/EBITDA of 18.23 suggests the market is pricing in sustained double-digit growth. The most commonly misapplied ratio is P/E because it fails to account for the one-time gains and heavy stock-based compensation that inflate reported earnings. A more appropriate metric is EV/EBITDA adjusted for SBC, or price-to-sales, which at 7.49 still implies a premium valuation relative to the sector.