Stock fact sheet · data as of
Twilio Inc. (TWLO): fair value, margin of safety and Wheel Score
Ticker symbol TWLO · Technology · Software - Infrastructure · United States · Class A common stock · Growth
TWLO is Twilio Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is TWLO undervalued?
Twilio Inc. (TWLO) closed at 213.50 on 5 Nov 2026, close to the GLS average fair value of 199.26 (7.1% above fair value). 2 of the 8 models that produced a number sit above the price, 6 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
The 8 models disagree widely: Lynch gives 69.45 while GLS Growth gives 504.68. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, TWLO is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 28, growth score 77, out of 100).
Nine valuation models for TWLO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 142.96 | -33% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 104.97 | -51% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 204.33 | -4% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 69.45 | -67% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 504.68 | +136% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 160.16 | -25% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 315.92 | +48% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 91.60 | -57% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 10.52 | -95% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 276.40 | +29% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - TWLO passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.9 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 0.4%, ROE 0.4%, ROA 0.3% - with debt at 0.14 times equity and a free-cash-flow yield of 3.7%.
Twilio Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Messaging 73%, Other Communications 19% (fiscal year FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 0.4% |
|---|---|---|---|
| GLS Moat | 3.9 / 10 | ROE | 0.4% |
| Debt / equity | 0.14 | ROA | 0.3% |
| Free-cash-flow yield | 3.7% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 40: Weak
TWLO scores 40 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 3, below fair value - trades 7% above our fair value; and filter 4, financially healthy - Piotroski 5/9 (under 6), and the parts are thin too - value weak, premium strong, moat fair, health fair, red flags strong, option trading strong, stability good. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 61% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. Chain open interest is 42,692 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.4M shares a day on a market cap of $33.0B, with a beta of 1.36 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 7% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 7% above fair value | |
| Premium | Strong | implied volatility 61% | |
| Moat | Fair | moat 3.9/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Strong | Red Flags score 95/100 | |
| Option trading | Strong | 8,819 contracts a day, 42,692 open interest | |
| Stability | Good | beta 1.36, $33.0B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for TWLO in the nightly calendar.
Analysts upgraded TWLO 1 time in the last 30 days with no downgrades; the latest action was a reiterated rating by Tigress Financial on 4 Nov 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Infrastructure
The 12 companies below are the closest to Twilio Inc. by market cap within the Software - Infrastructure industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| OKTA Okta, Inc. | 191.05 | 82.21 | -132% | 39Weak | $31.9B |
| ZS Zscaler, Inc. | 224.44 | 107.75 | -108% | 34Weak | $36.6B |
| VRSN VeriSign, Inc. | 318.03 | 178.66 | -78% | 44Weak | $28.5B |
| CPAY Corpay, Inc. | 418.60 | 493.09 | +15% | 45Weak | $27.5B |
| CRWV CoreWeave, Inc. Class A Common Stock | 48.42 | - | - | 15Weak | $26.7B |
| MDB MongoDB, Inc. | 328.38 | 59.67 | -450% | 37Weak | $26.4B |
| IOT Samsara Inc. | 42.81 | 8.87 | -383% | 42Weak | $25.1B |
| RBRK Rubrik, Inc. | 118.99 | 34.09 | -249% | 28Weak | $24.5B |
| XYZ Block, Inc. | 87.61 | 45.40 | -93% | 37Weak | $47.4B |
| BSQKZ Block, Inc. | 89.11 | 45.91 | -94% | 20No options | $48.2B |
| FFIV F5, Inc. | 329.72 | 268.50 | -23% | 45Weak | $18.7B |
| GEN Gen Digital Inc. | 30.89 | 46.37 | +33% | 55Fair | $18.3B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about TWLO
What kind of share is TWLO?
TWLO is Twilio Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is TWLO undervalued right now?
Not meaningfully: at 213.50 the stock trades within a few percent of the GLS average fair value of 199.26 (7.1% above fair value, data as of 5 Nov 2026).
What is the Wheel Score of TWLO and what does it mean?
TWLO scores 40 out of 100 (Weak) - it fails Wheel Trade Filters 3, 4. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for TWLO?
199.26 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Twilio Inc. report earnings next?
No upcoming earnings date is recorded for TWLO in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does TWLO have listed options, and how liquid are they?
Yes. The nightly snapshot found 598 listed contracts with 42,692 open interest across all expiries and implied volatility of 61% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.