Famed tech investor Jason Calacanis recently said that Twitter, “is the worst stock you could own in technology” during an interview which aired on CNBC last week.Tell us how you really feel, Jason. I do agree with Calacanis (on one point) that Twitter (TWTR) is in dire need of new management. However, the only realistic option is for an activist investor to take a significant stake. As opposed to the “Calacanis Fix” of hiring a new “Product Manager” (perhaps I missed the intent for sarcasm). Back to reality, Bill Ackman would appear as the prime activist candidate as he needs a new high-profile project after finally throwing in the towel on Herbalife (HLF). From a fundamental standpoint, while Twitter is certainly no gem, it is not the “worst stock in technology” either. Let’s look at Twitter vs. a few of its peers, Facebook and the newly public Snap. The table below uses some of the more common valuation measures; Price to Book(P/B), Forward Price/Earnings (FPE), Price/Earnings to Growth (PEG), and Price to Sales (P/S): *Valuation Measure Twitter (TWTR) Facebook (FB) Snap (SNAP) P/B 2.37 6.83 12.49 FPE 38.97 20.95 -70.91 **PEG 1.63 1.09 N/A P/S 4.34 14.66 52.81 *Data provided by Thomson Reuters and Yahoo! Finance as of 3/24/17**5 Year ModelAccording to these measures, Twitter seems anything but overvalued and is certainly not, “the worst stock” (in tech). Twitter and Facebook both have appealing Price to Earnings Growth (PEG) at 1.63 and 1.09, respectively. Generally, the lower the PEG the better, with investors typically looking for a number between 1 and 2 with less than 1 usually seen as significantly undervalued. However, with any measure it is not perfect, for example, PEG does not account for Return on Equity (ROE). So, basically, a company can have a low PEG, but not be profitable (as is the case with Twitter currently). Moving on to the Price to Sales Ratio (P/S) of this group, Twitter has a much more reasonable number than Facebook according to this measure. As with PEG, the lower the P/S the better. As an aside, Snap has a P/S of 55.9, which is drastically high – and it’s not just the P/S which makes the stock overvalued. There is simply no valuation measure that I am aware of (inclusive of the 4 in the above table) that would signal this stock is even close to fair value. To put this all in some perspective, Snap’s Market Capitalization (as of this writing) is roughly “Two Twitters” and is more than each Hilton (HLT) and United Continental (UAL).Disclosure: Long TWTR Calls