Latest Ratios: P/E Ratio -141.1x · EV/EBITDA 59.4x · ROE -3.6%. (2015–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.9B | $463M | $463M | $371M | $709M | $1.8B | $3.7B | $1.5B | $861M | $336M | — |
| Enterprise Value | $2.5B | $1.1B | $885M | $883M | $1.1B | $2.0B | $3.9B | $1.4B | $820M | $299M | — |
| P/E Ratio → | -141.09 | — | — | — | — | — | — | 640.50 | 47.94 | 62.49 | — |
| P/S Ratio | 2.58 | 0.61 | 0.62 | 0.62 | 1.24 | 3.67 | 10.79 | 6.59 | 4.22 | 2.06 | — |
| P/B Ratio | 4.55 | 1.16 | 1.48 | 1.25 | 2.61 | 4.36 | 8.61 | 5.67 | 7.92 | 4.38 | — |
| P/FCF | 0.03 | 0.01 | 6.63 | 19.40 | — | — | — | — | 84.57 | 50.49 | — |
| P/OCF | 0.02 | 0.01 | 5.52 | 9.50 | 20.32 | 44.13 | 819.46 | — | 34.97 | 22.99 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.41 | 1.18 | 1.47 | 1.90 | 4.02 | 11.47 | 5.90 | 4.02 | 1.83 | — |
| EV / EBITDA | 59.38 | 24.81 | 30.32 | 56.67 | 59.63 | 49.15 | 485.21 | — | 65.22 | 14.69 | — |
| EV / EBIT | — | — | — | — | 53.47 | — | — | — | 121.48 | 20.44 | — |
| EV / FCF | — | 0.02 | 12.66 | 46.23 | — | — | — | — | 80.52 | 44.85 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.8% | 35.8% | 37.4% | 39.3% | 41.6% | 44.5% | 46.0% | 46.3% | 47.0% | 45.2% | 44.0% |
| Operating Margin | -1.9% | -1.9% | -2.7% | -5.9% | -4.2% | -0.5% | -3.9% | -7.6% | 3.3% | 9.0% | 10.0% |
| Net Profit Margin | -1.7% | -1.7% | -0.9% | -2.7% | 3.4% | -5.6% | -12.8% | 1.1% | 8.8% | 3.7% | 14.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -3.6% | -3.6% | -2.1% | -5.7% | 5.7% | -6.5% | -12.6% | 1.3% | 19.3% | 15.7% | 2043.7% |
| ROA | -1.2% | -1.2% | -0.6% | -1.6% | 2.0% | -2.8% | -7.1% | 1.0% | 14.1% | 6.8% | 33.6% |
| ROIC | -1.2% | -1.2% | -1.9% | -3.6% | -3.0% | -0.3% | -2.6% | -15.0% | 9.5% | 28.6% | 48.3% |
| ROCE | -1.6% | -1.6% | -2.2% | -4.0% | -2.7% | -0.3% | -2.4% | -8.3% | 6.8% | 24.5% | 70.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.75 | 1.75 | 1.61 | 2.17 | 1.81 | 1.22 | 0.71 | 0.09 | — | 0.00 | — |
| Debt / EBITDA | 16.39 | 16.39 | 17.26 | 41.36 | 26.99 | 12.54 | 37.60 | — | — | 0.00 | 2.10 |
| Net Debt / Equity | — | 1.50 | 1.35 | 1.72 | 1.39 | 0.42 | 0.54 | -0.59 | -0.38 | -0.49 | — |
| Net Debt / EBITDA | 13.98 | 13.98 | 14.45 | 32.89 | 20.76 | 4.28 | 28.70 | — | -3.28 | -1.85 | 1.78 |
| Debt / FCF | — | 0.01 | 6.03 | 26.83 | — | — | — | — | -4.05 | -5.64 | — |
| Interest Coverage | -7.18 | -7.18 | -3.81 | -22.89 | 6.68 | -0.09 | -0.82 | — | 22.43 | 8.46 | 16.79 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.39 | 1.39 | 1.34 | 2.06 | 2.45 | 4.42 | 2.10 | 4.91 | 2.79 | 2.66 | 0.92 |
| Quick Ratio | 1.39 | 1.39 | 1.34 | 2.06 | 2.45 | 4.42 | 2.10 | 4.91 | 2.79 | 2.66 | 0.92 |
| Cash Ratio | 0.72 | 0.72 | 0.60 | 1.25 | 1.62 | 3.55 | 1.22 | 4.04 | 1.79 | 1.53 | 0.22 |
| Asset Turnover | — | 0.67 | 0.76 | 0.55 | 0.62 | 0.46 | 0.39 | 0.66 | 1.36 | 1.56 | 2.17 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 44.26 | 42.16 | 47.46 | 47.42 | 45.78 | 58.77 | 47.37 | 42.93 | 47.54 | 40.40 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | 134.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | 0.2% | 2.1% | 1.6% | — |
| FCF Yield | 100.0% | 14506.3% | 15.1% | 5.2% | — | — | — | — | 1.2% | 2.0% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.4% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.4% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Shares Outstanding | — | $30M | $27M | $26M | $31M | $25M | $24M | $24M | $21M | $15M | $15M |
Negative Operating Margin Persistence
According to recent market data, Bandwidth trades at a forward P/E of 31.61, a multiple that appears disconnected from the company's stagnant 0.71% year-over-year revenue growth, suggesting investors may be mispricing the firm as a high-growth software entity rather than a capital-intensive infrastructure provider.
The current EV/EBITDA multiple of 56.56 indicates that the market is assigning a premium based on potential future scale that has yet to materialize in the income statement. This valuation warrants caution, as the lack of top-line momentum makes it difficult to justify such multiples compared to peers who demonstrate more consistent growth trajectories.
As reported in financial statements, Bandwidth's ROIC has consistently hovered in negative territory, with the most recent quarter showing -0.9%, indicating that the company is currently failing to generate returns on invested capital that exceed its cost of capital, a trend that warrants further investigation.
The persistent inability to achieve positive ROIC suggests that the heavy investment in Tier 1 network infrastructure is not yet yielding the expected competitive advantages in unit economics. Investors should monitor whether management can improve capital allocation efficiency or if the current asset-heavy model will continue to drag on long-term shareholder value creation.
Based on reported figures, Bandwidth's asset turnover ratio remains low at 0.42, reflecting the significant capital burden of maintaining a physical network, while fluctuations in DSO—which reached 41 days in 2025Q4—suggest inconsistent collection cycles that complicate the company's overall working capital efficiency.
The low asset turnover highlights the structural reality of being a facilities-based carrier, where revenue growth is tethered to physical capacity rather than pure software scalability. The variability in DSO may indicate that the company is facing pressure from enterprise customers, potentially impacting the timing of cash inflows and overall liquidity management.
According to recent SEC filings, Bandwidth's debt-to-equity ratio reached 1.75 in 2025Q4, a level that, when combined with persistent negative operating margins, suggests that the company's ability to service its debt obligations without further financing may be increasingly vulnerable to market volatility.
The lack of consistent interest coverage, as evidenced by negative figures in several recent quarters, implies that the company is relying on its existing cash buffer to manage its debt load. This leverage profile warrants close monitoring, as any further deterioration in operating performance could limit the firm's financial flexibility.
Investors frequently misapply standard SaaS valuation multiples to Bandwidth, failing to account for the fact that its facilities-based carrier model carries significantly lower gross margins than pure-play software peers, which obscures the true underlying profitability of the business as reported in recent financial disclosures.
Using P/S ratios to compare Bandwidth to software-only competitors is misleading because it ignores the high pass-through costs inherent in the CPaaS infrastructure model. Analysts should instead focus on gross profit per unit or net revenue to better understand the company's actual earning power and operational health.
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying BAND stock.
Bandwidth Inc.'s current P/E ratio is -141.1x. The historical average is 55.2x.
Bandwidth Inc.'s current EV/EBITDA is 59.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 42.9x.
Bandwidth Inc.'s return on equity (ROE) is -3.6%. The historical average is -23.3%.
Based on historical data, Bandwidth Inc. is trading at a P/E of -141.1x. Compare with industry peers and growth rates for a complete picture.
Bandwidth Inc. has 35.8% gross margin and -1.9% operating margin.
Bandwidth Inc.'s Debt/EBITDA ratio is 16.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.