Complete BAND Stock Valuation Analysis
Comprehensive intrinsic value analysis using 2 different methodologies
BAND DCF Analysis
BAND (Bandwidth Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $573.2M | $601.1M | $748.5M | $890.2M | $1.0B | $1.2B | $1.4B | $1.5B |
| Revenue Growth % | - | 4.9% | 24.5% | 18.9% | 17.0% | 15.3% | 13.8% | 12.4% |
| EBIT | $-24.3M | $-35.5M | $-20.1M | $44.5M | $52.1M | $60.1M | $68.4M | $76.9M |
| EBIT Margin % | -4.2% | -5.9% | -2.7% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| Tax Rate % | 0.0% | 25.0% | 25.0% | 20.0% | 20.5% | 21.0% | 21.5% | 22.0% |
| NOPAT | $-24.3M | $-26.6M | $-15.0M | $35.6M | $41.4M | $47.5M | $53.7M | $59.9M |
| NOPAT Margin % | -4.2% | -4.4% | -2.0% | 4.0% | 4.0% | 4.0% | 3.9% | 3.9% |
| Capex | $64.1M | $19.9M | $14.0M | $56.5M | $62.8M | $68.8M | $74.4M | $79.5M |
| Capex / Revenue % | 11.2% | 3.3% | 1.9% | 6.3% | 6.0% | 5.7% | 5.4% | 5.2% |
| Depreciation | $35.6M | $41.7M | $49.2M | $58.5M | $68.5M | $79.0M | $89.9M | $101.1M |
| D&A / Revenue % | 6.2% | 6.9% | 6.6% | 6.6% | 6.6% | 6.6% | 6.6% | 6.6% |
| Change in NWC | $-153.8M | $-35.6M | $-82.5M | $-26.4M | $-24.7M | $-22.8M | $-20.7M | $-18.6M |
| NWC Change / Revenue % | -26.8% | -5.9% | -11.0% | -3.0% | -2.4% | -1.9% | -1.5% | -1.2% |
| Unlevered FCF | $101.0M | $30.8M | $102.7M | $64.0M | $71.8M | $80.4M | $89.9M | $100.2M |
| UFCF % Chg. | - | -69.5% | 233.3% | -37.7% | 12.2% | 12.0% | 11.8% | 11.5% |
| FCF / Revenue % | 17.6% | 5.1% | 13.7% | 7.2% | 6.9% | 6.7% | 6.6% | 6.5% |
| Discount Factor | - | - | - | 0.919 | 0.844 | 0.776 | 0.713 | 0.655 |
| Present Value of FCF | - | - | - | $58.8M | $60.6M | $62.4M | $64.1M | $65.7M |
| Sum of PV of UFCF | - | - | - | $58.8M | $119.4M | $181.8M | $245.9M | $311.6M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 7.0% |
| Tax Rate | 20.0% |
| After Tax Cost of Debt | 5.6% |
| Risk Free Rate | 4.46% |
| Market Risk Premium | 4.3% |
| Beta | 1.89 |
| Cost of Equity | 12.6% |
| Total Debt | $503.6M |
| Market Cap | $430.7M |
| Total Capital | $934.3M |
| Debt Weighting | 53.9% |
| Equity Weighting | 46.1% |
| WACC | 8.8% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $100.2M |
| Terminal Value | $1.6B |
| PV of Terminal Value | $1.1B |
| Cumulative PV of UFCF | $311.6M |
| Net Debt | $421.8M |
| Equity Value | $954.8M |
| Shares Outstanding | 27.2M |
| Implied Share Price | $35 |
| Current Share Price | $14 |
| Implied Upside/(Downside) | +142.5% |
Valuation Summary
$35.09
Implied Price
$14.47
Current Price
+142.5%
Upside/Downside
8.8%
WACC
BAND Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 8 peer companies in Technology
P/E Ratio
$-0.83
-105.7%
Peer Median: 23.4x
EV/EBITDA
$28.64
+97.9%
Peer Median: 23.5x
P/S Ratio
$57.66
+298.4%
Peer Median: 2.3x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for BAND's business model and current situation.
Multiple Comparison
| Multiple | BAND Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | -406.8x | 23.4x | 23.4x | -1842.0% | Undervalued |
| EV/EBITDA | 23.5x | 23.5x | 22.4x | 0.0% | Fair Value |
| P/S Ratio | 0.6x | 2.3x | 2.7x | -74.9% | Undervalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $2.82B | 23.4x | 10.7x | 3.3x | |
| $2.32B | 0.0x | 23.7x | 2.3x | |
| $2.40B | 0.0x | 36.5x | 9.4x | |
| $1.01B | 0.0x | 17.7x | 0.2x | |
| $0.50B | 0.0x | 0.0x | 84.8x | |
| $0.43B | 0.0x | 23.5x | 0.6x | |
| $0.02B | 0.0x | 0.0x | 0.3x | |
| $8.32B | 0.0x | 0.0x | 1794.6x |