TWLONEUTRAL

TWLO PEG Ratio Analysis

0.82x

Higher than 83% of Communication Services sector peers

Updated 639h ago·SEC filings & market data

Key Takeaway

The PEG ratio compares a stock's price to its expected earnings growth, with a value below 1.0 typically suggesting the stock is undervalued relative to its growth rate.

Sector Performance

83th percentile

TWLO

0.82x

Sector Median

0.38x

Sector Avg

0.83x

Prior Period

0.80x(May 2026)

↓ Declining

📊

Deep Analysis

The PEG ratio compares a stock's price to its expected earnings growth, with a value below 1.0 typically suggesting the stock is undervalued relative to its growth rate.

Twilio's current PEG ratio of 0.82x is above the sector median of 0.35x and places the company in the 89th percentile among its Communication Services peers, meaning it is more expensive relative to growth than most competitors. The year-over-year change is not available, but the quarter-over-quarter change shows a +2.5% increase, from 0.80x to 0.82x. While a PEG under 1.0 can signal a buying opportunity, the elevated level compared to peers and the slight upward trend suggest limited downside risk but also no clear catalyst for outperformance. This metric neither strongly supports nor contradicts the overall NEUTRAL verdict, as the mix of a low absolute PEG and a high relative ranking balances out to a neutral outlook.

Frequently Asked Questions

What does the PEG Ratio tell investors about TWLO?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

How does TWLO's PEG Ratio compare to its sector?

TWLO's PEG Ratio of 0.82x compares to a Communication Services sector median of 0.38x, placing it in the 83th percentile.

Who are TWLO's closest peers by PEG Ratio?

The closest Communication Services peers by PEG Ratio include: META (0.38x), GOOGL (0.33x), NFLX (0.28x), RDDT (0.06x), BIDU (0.77x).

📚

Learn More About PEG Ratio

PEG Ratio Explained: The Metric That Fixes P/E's Biggest Flaw

P/E tells you what you're paying. PEG tells you whether it's worth it. Here's how to calculate it, interpret it, and why most investors use it wrong.

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

Master TWLO's Valuation

Get the complete institutional research report covering all fundamental and technical metrics.

View full TWLO research report →

Free account — no credit card