EGHT
8x8, Inc.
$1.71
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 74.3% below fair value
You pay
$1.71
Bear
$6.62
Fair
$6.62
Bull
$7.45
Bear
$6.62
+288.4%
3% stage 1 growth, 12% discount
Fair
$6.62
+288.4%
3% stage 1 growth, 12% discount
Bull
$7.45
+337.0%
4% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
28%
Implied Market Multiple
10.0x
Market is pricing in (growth)
1.0%
vs 3.0% base
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $19.77 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $6.62 per share.
Warnings
Wall Street's average price target is $19.77 (from 28 analysts). Our estimate is 89% below the consensus -- consider that gap carefully.
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