Bandwidth Inc.

BAND

TechnologySoftware - InfrastructureNASDAQ

$49.89

Market Cap: $1.60B

Bandwidth Inc. (BAND) Valuation Summary

Updated May 9, 2026 18:13

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.10 – $215.15	$34.97	-29.9%
Revenue DCF 10Y	$5.69 – $277.78	$54.12	+8.5%
▸ Trading Multiples
EV/Revenue	$20.27 – $61.36	$40.92	-18.0%

Valuation History

DCF Analysis

Bandwidth Inc. (BAND) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$54.12

Market Price

$49.89

Upside / Downside

+8.5%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -1.9% to a target of 10.2% over 5 years, discounted at a WACC of 7.0%, Bandwidth Inc. (BAND) has an intrinsic value of $54.12 per share (range: $5.69 – $277.78).

Key Assumptions

Current Operating Margin

-1.9%

Target Operating Margin

10.2%

WACC

7.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.1%

Target CapEx/Rev

10.8%

D&A/Revenue

7.2%

Tax Rate

0.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	891	18.2%	0.5%	5	5	64	(58)	23	-13	-13
2027	931	4.5%	3.0%	27	27	67	(65)	3	26	23
2028	1,114	19.7%	5.4%	60	60	80	(83)	15	42	35
2029	1,240	11.3%	7.8%	97	97	89	(99)	10	77	61
2030	1,380	11.3%	10.2%	141	141	99	(116)	11	113	83
2031	1,517	9.9%	10.2%	155	155	109	(135)	11	118	81
2032	1,647	8.6%	10.2%	169	169	118	(154)	11	122	79
2033	1,765	7.2%	10.2%	181	181	127	(174)	10	124	75
2034	1,866	5.8%	10.2%	191	191	134	(192)	8	125	70
2035	1,948	4.4%	10.2%	200	200	140	(210)	7	123	65

Enterprise Value Bridge

Sum of PV(FCFF)559

Terminal Value (Gordon Growth at 3.0%)3,162

PV of Terminal Value1,662

Enterprise Value2,221

(–) Net Debt598

Equity Value1,623

(÷) Shares Outstanding30

Fair Value per Share$54.12

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
5.0%	$-11	$61	$134	$206	$278
6.0%	$-13	$34	$81	$128	$175
7.0%	$-15	$20	$54	$89	$123
8.0%	$-16	$11	$38	$65	$92
9.0%	$-16	$6	$28	$50	$72

Current price: $49.89. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 8.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Bandwidth Inc. (BAND) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$34.97

Market Price

$49.89

Upside / Downside

-29.9%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-1.9%

Target Operating Margin

10.2%

WACC

7.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.1%

Target CapEx/Rev

10.8%

D&A/Revenue

7.2%

Tax Rate

0.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	891	18.2%	0.5%	5	5	64	(63)	23	-17	-17
2027	931	4.5%	3.0%	27	27	67	(74)	3	17	15
2028	1,114	19.7%	5.4%	60	60	80	(99)	15	26	22
2029	1,240	11.3%	7.8%	97	97	89	(122)	10	54	42
2030	1,380	11.3%	10.2%	141	141	99	(149)	11	80	59

Enterprise Value Bridge

Sum of PV(FCFF)122

Terminal Value (Gordon Growth at 3.0%)2,068

PV of Terminal Value1,525

Enterprise Value1,647

(–) Net Debt598

Equity Value1,049

(÷) Shares Outstanding30

Fair Value per Share$34.97

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
5.0%	$-22	$35	$95	$155	$215
6.0%	$-22	$16	$55	$94	$134
7.0%	$-22	$6	$35	$64	$93
8.0%	$-22	$0	$23	$46	$69
9.0%	$-22	$-4	$15	$34	$53

Current price: $49.89. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 8.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$40.92

Market Price

$49.89

Upside / Downside

-18.0%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Bandwidth Inc. (BAND) has a fair value of $40.92 based on 8 comparable companies in the Software - Infrastructure industry.

EV/Revenue Valuation — Software - Infrastructure

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Bandwidth Inc.BAND	1,497	2.8x	2.8x
Consensus Cloud Solutions, Inc.CCSI	626	3.2x	3.2x
International Money Express, Inc.IMXI	478	1.0x	0.9x
OneSpan Inc.OSPN	453	1.6x	1.6x
Priority Technology Holdings, Inc.PRTH	453	1.5x	1.6x
Backblaze, Inc.BLZE	449	3.4x	4.3x
Cerence Inc.CRNC	444	2.3x	1.8x
Gorilla Technology Group Inc.GRRR	374	2.9x	3.7x
Allot Ltd.ALLT	326	3.1x	2.7x
Industry Median		2.6x	2.3x
(*) Revenue		754	742
= Enterprise Value		1,961	1,690
(-) Net Debt		598	598
Equity Value		1,363	1,092
(/) Outstanding shares		30	30
Fair Price		$45	$36

Selected Fair Value (avg of trailing + forward)

$40.92

-18.0%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.10 – $215.15

$34.97

-29.9%

Revenue DCF 10Y

$5.69 – $277.78

$54.12

+8.5%

▸ Trading Multiples

EV/Revenue

$20.27 – $61.36

$40.92

-18.0%

DCF Analysis

Bandwidth Inc. (BAND) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$54.12

Market Price

$49.89

Upside / Downside

+8.5%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-1.9%

Target Operating Margin

10.2%

WACC

7.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.1%

Target CapEx/Rev

10.8%

D&A/Revenue

7.2%

Tax Rate

0.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	891	18.2%	0.5%	5	5	64	(58)	23	-13	-13
2027	931	4.5%	3.0%	27	27	67	(65)	3	26	23
2028	1,114	19.7%	5.4%	60	60	80	(83)	15	42	35
2029	1,240	11.3%	7.8%	97	97	89	(99)	10	77	61
2030	1,380	11.3%	10.2%	141	141	99	(116)	11	113	83
2031	1,517	9.9%	10.2%	155	155	109	(135)	11	118	81
2032	1,647	8.6%	10.2%	169	169	118	(154)	11	122	79
2033	1,765	7.2%	10.2%	181	181	127	(174)	10	124	75
2034	1,866	5.8%	10.2%	191	191	134	(192)	8	125	70
2035	1,948	4.4%	10.2%	200	200	140	(210)	7	123	65

Enterprise Value Bridge

Sum of PV(FCFF)559

Terminal Value (Gordon Growth at 3.0%)3,162

PV of Terminal Value1,662

Enterprise Value2,221

(–) Net Debt598

Equity Value1,623

(÷) Shares Outstanding30

Fair Value per Share$54.12

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
5.0%	$-11	$61	$134	$206	$278
6.0%	$-13	$34	$81	$128	$175
7.0%	$-15	$20	$54	$89	$123
8.0%	$-16	$11	$38	$65	$92
9.0%	$-16	$6	$28	$50	$72

Current price: $49.89. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 8.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$40.92

Market Price

$49.89

Upside / Downside

-18.0%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Bandwidth Inc. (BAND) has a fair value of $40.92 based on 8 comparable companies in the Software - Infrastructure industry.

EV/Revenue Valuation — Software - Infrastructure

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Bandwidth Inc.BAND	1,497	2.8x	2.8x
Consensus Cloud Solutions, Inc.CCSI	626	3.2x	3.2x
International Money Express, Inc.IMXI	478	1.0x	0.9x
OneSpan Inc.OSPN	453	1.6x	1.6x
Priority Technology Holdings, Inc.PRTH	453	1.5x	1.6x
Backblaze, Inc.BLZE	449	3.4x	4.3x
Cerence Inc.CRNC	444	2.3x	1.8x
Gorilla Technology Group Inc.GRRR	374	2.9x	3.7x
Allot Ltd.ALLT	326	3.1x	2.7x
Industry Median		2.6x	2.3x
(*) Revenue		754	742
= Enterprise Value		1,961	1,690
(-) Net Debt		598	598
Equity Value		1,363	1,092
(/) Outstanding shares		30	30
Fair Price		$45	$36

Selected Fair Value (avg of trailing + forward)

$40.92

-18.0%