Services-Computer Processing & Data Preparation
8x8, Inc. provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions for small and mid-size businesses, mid-market and larger enterprises, government agencies, and other organizations worldwide. It provides 8x8 Work, a self-contained end-to-end united communications solution that delivers enterprise voice with public switched telephone network connectivity, video meetings, and unified messaging, as well as direct messages, public and private team messaging rooms, and short and multimedia services; 8x8 Contact Center, a multi-channel cloud-based contact center solution; and 8x8 CPaaS, a set of global communications Platform-as-a-Service. The company also offers and X1 through X4 and X5 through X8, which provide enterprise-grade voice, unified communications, and video meetings and team collaboration, and contact center solutions. It markets its services to end users through industry conferences, trade shows, Webinars, and digital advertising channels. The company was incorporated in 1987 and is headquartered in Campbell, California.
Discounted Cash Flow Valuation of 8x8 Inc
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $76.34M | $87.71M | $99.81M | $112.5M | $125.5M | $138.7M | $151.7M | $164.3M | $176.2M | $186.9M | $196.2M | $1.962B |
DCF | $76.27M | $75.47M | $73.96M | $71.77M | $68.96M | $65.6M | $61.78M | $57.59M | $53.13M | $48.51M | $485.1M | |
Value | $1.138B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | 03-2024 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | -2.4% | -1.9% | -35% | -25% | -39% | -31% | -27% | -9.8% | -9.3% | -9.3% |
ROA | -1.9% | -1.5% | -14% | -16% | -23% | -22% | -17% | -7.9% | -3.7% | -3.7% |
ROE | -1.9% | -1.6% | -48% | -36% | -90% | -100% | -96% | -73% | -66% | -66% |
The average Net Margin over the past 5 years is -23.58%.
The trend of Net Margin over the past 5 years is +4.84%.
The average ROA over the past 5 years is -14.83%.
The trend of ROA over the past 5 years is +3.2%.
The average ROE over the past 5 years is -77.47%.
The trend of ROE over the past 5 years is -2.72%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | 03-2024 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | - | 0.00 | -9.01 | -2.25 | -15.05 | 14.65 | 5.67 | 2.59 | 2.59 |
Debt Equity | - | - | 0.00 | 0.87 | 1.53 | 1.92 | 2.45 | 2.60 | 1.94 | 1.94 |
MIN | ||||||||||
Graham Stability | - | - | - | - | - | - | - | - | - | - |
The Debt/FCF trailing twelve month is 2.59.
The trend of Debt/FCF over the past 5 years is 3.19.
Graham’s Stability measure stands at -.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 03-2017 | 03-2019 | 03-2021 | 03-2023 | Trend |
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Revenue | 16% | 16% | 11% | -2% | -2.2% |
Net Income | - | - | - | - | - |
Stockholders Equity | -14% | -16% | -14% | 2.1% | -1.7% |
FCF | 21% | - | - | 67% | 8.1% |
The Revenue CAGR over the past 5 years is +15.63%.
The trend of Revenue growth rate over the past 5 years is -2.18%.
The Earnings CAGR over the past 5 years is -5.3%.
The trend of Earnings growth rate over the past 5 years is -.
The Equity CAGR over the past 5 years is -16.38%.
The trend of Equity growth rate over the past 5 years is -1.68%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is +8.06%.