EGHT
8x8, Inc.
$1.94
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 37.9% below fair value
You pay
$1.94
Bear
$2.86
Fair
$3.12
Bull
$3.54
Bear
$2.86
+47.4%
3% stage 1 growth, 12% discount
Fair
$3.12
+61.0%
4% stage 1 growth, 12% discount
Bull
$3.54
+82.5%
5% stage 1 growth, 12% discount
Adjust Assumptions
3.8%
12.0%
3.0%
Key Value Driver
FCF growth rate (4% base case)
Terminal Value % of EV
29%
Implied Market Multiple
9.2x
Market is pricing in (growth)
-0.1%
vs 3.8% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (28 analysts)
$19.77
Divergence from AlphaVal
84%
Summary
Using a two-stage FCF DCF with 4% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $3.12 per share.
Warnings
Wall Street's average price target is $19.77 (from 28 analysts). Our estimate is 84% 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