* Note: Prices are in Million (M) USD.
Description:
Bandwidth Inc. is a cloud-based software-based communications platform as a service (CPaaS) provider in the United States. The company is headquartered in Raleigh, North Carolina.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $82 M
Debt : $504 M
EBITDA : $34 M
Net Debt (Debt - Cash): $422 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Communication
Industry: Software - Infrastructure
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $2 M
Average Revenue: $365 M
Revenue Converted To Free Cash Flow (%): 0%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 69.15%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $748 M
Revenue 4 Years Ago (2020-12-31): $343 M
Last 5 Years Average Revenue Growth: 24%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $27 M
Share Count 5 Years Ago (2020-12-31): $24 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Message: Cannot calculate payout ratio because EPS is either 0 or negative.
Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -26%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $15
52-Week Low: $11
Threshold Price (15% Above 52-Week Low): $13
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $413 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Bandwidth Inc (BAND) stock.
Last 3 Years Avg PE 25.05, Fair Value PE 20, Industry Based PE 30, Growth Based PE 23, RCFC Based PE 0.4. Based on these 5 values, average assigned is 19.69.
The fair value of Bandwidth Inc (BAND) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
