BAND
Bandwidth Inc.
$46.82
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 234.3% above fair value
You pay
$46.82
Bear
$0.46
Fair
$14.01
Bull
$30.33
Bear
$0.46
-99.0%
11% stage 1 growth, 12% discount
Fair
$14.01
-70.1%
19% stage 1 growth, 12% discount
Bull
$30.33
-35.2%
24% stage 1 growth, 12% discount
Adjust Assumptions
18.5%
12.0%
3.0%
Key Value Driver
FCF growth rate (19% base case)
Terminal Value % of EV
41%
Implied Market Multiple
70.9x
Market is pricing in (growth)
28.1%
vs 18.5% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (16 analysts)
$63.25
Divergence from AlphaVal
78%
Summary
Using a two-stage FCF DCF with 19% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $14.01 per share.
Warnings
Wall Street's average price target is $63.25 (from 16 analysts). Our estimate is 78% below the consensus -- consider that gap carefully.
This stock is 41% below its 52-week high, with weak or declining earnings. That combination often signals real trouble, even though the valuation below is based on other fundamentals.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions