BAND

Bandwidth Inc.

Fundamental data last updated:June 19, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

07/30/2026

Business Summary

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States. The company operates in two segments, CPaaS and Other. Its platform enables enterprises to create, scale, and operate voice or messaging communications services across various mobile applications or connected devices. The company also provides SIP trunking, data resale, and hosted voice over Internet protocol services. It serves large enterprises, communications service providers, conferencing providers, contact centers, small and medium-sized businesses, emerging technology companies, and many other businesses. Bandwidth Inc. was founded in 2000 and is headquartered in Raleigh, North Carolina.

 


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VALUATION

P/E

-361.45

Market Cap ($M USD)

$1.85B

Forward P/E

19.95

PEG

0.01

PRICE TO SALES

2.34

PRICE TO BOOK

4.50

EV / EBITDA

48.92

5-Year Average P/E

Free Cash Flow Yield

4.17%

DCF Value

$-15.62

Graham Number

N/A

Price to FCF

24.00

EV to FCF

28.89

Earnings Yield

-0.28%

FCF Yield

4.17%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.16

Next Year EPS Growth Estimate

$2.89

Next Year Revenue Growth Estimate

$111.37B

Return on Equity (ROE)

-1.28%

FREE CASH FLOW

Operating Margin

-1.81%

Debt-to-Equity

1.75

Piotroski F-Score

4

Altman Z-Score

2.54

Return on Invested Capital (ROIC)

-1.78%

Current Ratio

0.94

Quick Ratio

0.94

Net Debt to EBITDA

8.28

Interest Coverage

-6.46

Gross Profit margin

36.59%

FCF PER SHARE

$2.43

REVENUE PER SHARE

$24.88

Analyze BAND on TradingView

Gainseekers Quantitative Analysis

Summary

The market appears to be mispricing Bandwidth Inc. significantly. Despite a negative DCF value, the stock has traded well above this metric, suggesting potential overvaluation. The Forward P/E of 17.26 indicates optimism about future earnings, yet the negative Earnings Yield and a modest Altman Z-score of 2.28 raise questions about financial stability. The company’s current valuation seems to hinge on anticipated growth rather than present fundamentals, which could be risky if expectations aren’t met.

AI Exposure / Tech Reliance

Positioned within the Software - Infrastructure industry, Bandwidth Inc. is well-situated to leverage AI advancements. The sector's inherent adaptability to technological shifts provides a fertile ground for innovation. This positioning could enable the company to capitalize on AI-driven efficiencies and new market opportunities.

The Bull Case

For the value-driven investor, Bandwidth Inc. offers intriguing prospects. The Forward PEG ratio of 0.009 suggests significant undervaluation relative to growth expectations. A Free Cash Flow Yield of 4.82% and a Piotroski F-Score of 4 indicate reasonable capital efficiency and financial health. Despite a negative ROIC, the company's gross profit margin of 36.59% hints at potential pricing power, making it an attractive buy for those betting on future profitability.

The Bear Case

However, the structural risks are glaring. A Price/Book ratio of 3.90 and Price/Sales of 2.03 suggest the stock is priced for perfection, with little room for error. The negative EPS and a troubling Net Debt to EBITDA ratio of 8.28 highlight financial strain. Trading near its 52-week high, the stock appears technically overextended, raising caution for those wary of buying at the peak.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$60.00

Institutional Ownership %

1-Year Beta

2.73

Insider Buying % (6 Mo)

Distance to 52-Week High

7.94%

Distance to 52-Week Low

78.32%

EARNINGS SURPRISE %

18.75%

50-DAY SMA

$32.31

200-DAY SMA

$19.34

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.