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How Did Goldman Sachs Determine the Intrinsic Value of Twitter?

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Advisor Perspectives
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Q2 2022 hedge fund letters, conferences and more

What’s interesting about Twitter is that Goldman Sachs evaluated Elon Musk’s offer as fair

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Twitter’s Schedule 14A from SEC.GOV

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Goldman Sachs opinion on Twitter

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Elon Musk’s offer price is 67% above 52 weeks low, but 24% below 52-weeks high

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Goldman Sachs used different methods to calculate the fair value

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Method 1: Illustrative future value of share

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Goldman Sachs used different methods to calculate the fair value

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Method 2: Discounted cash flow analysis

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Goldman Sachs used different methods to calculate the fair value

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Method 3: Selected Precedent analysis

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Goldman Sachs used different methods to calculate the fair value

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Method 4: Selected company comparable

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Goldman Sachs used different methods to calculate the fair value

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Article by Andrew Stotz, Become a Better Investor.

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