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BandwidthBAND -6.33%71 EV-to-EBITDA is 61.82 as of Jul. 16, 2026, which is 126% above its 10-year median of 27.30. GuruFocus rates BAND with a GF Score™ of 71/100 and a GF Value™ of $16.01 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,950 Software companies, Bandwidth ranks worse than 89.23% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Bandwidth's enterprise value is $2,644.9 Mil.
Bandwidth's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $42.8 Mil. Therefore, Bandwidth's EV-to-EBITDA for today is 61.82.
The historical rank and industry rank for Bandwidth's EV-to-EBITDA or its related term are showing as below:
BAND'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -4989.38 Med: 27.3 Max: 6818.7
Current: 61.82
During the past 11 years, the highest EV-to-EBITDA of Bandwidth was 6818.70. The lowest was -4989.38. And the median was 27.30.
BAND's EV-to-EBITDA is ranked worse than 89.23% of 1950
companies
in the Software industry
Industry Median: 10.545
vs BAND: 61.82
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Bandwidth (NAS:BAND) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Bandwidth's share price for today is $70.96.
Bandwidth's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.380.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Bandwidth's EV-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, Bandwidth's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bandwidth EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Bandwidth's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Bandwidth's EV-to-EBITDA falls into.
Bandwidth's current Enterprise Value is $2,644.9 Mil.
Bandwidth's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $42.8 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bandwidth (BAND) has a EV-to-EBITDA of 61.82 as of Jul. 16, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Bandwidth. This is 126% above median its historical median of 27.30. According to the industry distribution chart, Bandwidth ranks #1740 out of 1950 companies in the Software industry, placing it in the top 89.2%.
Is Bandwidth's EV-to-EBITDA too high?
Bandwidth's current EV-to-EBITDA of 61.82 is 126% above median its 10-year median of 27.30. The Software industry median EV-to-EBITDA is 10.55. Bandwidth's value of 61.82 is 486.2% above this industry median. Based on the distribution chart, Bandwidth ranks #1740 out of 1950 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Bandwidth has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bandwidth's EV-to-EBITDA compare to WIX and MQ?
According to the Software industry distribution chart, Bandwidth ranks #1740 out of 1950 companies for EV-to-EBITDA. This places Bandwidth in the lower half of its industry. The industry median EV-to-EBITDA is 10.55. Bandwidth's value of 61.82 is 486.2% above this benchmark. While the company's 10-year median is 27.30 vs. the industry median of 10.55, Bandwidth has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.55, based on 1,950 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bandwidth's current EV-to-EBITDA of 61.82 is 486.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Bandwidth. For the Software industry, the median EV-to-EBITDA is 10.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bandwidth's current EV-to-EBITDA is 61.82, which is 126% above median its own 10-year median of 27.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bandwidth stock overvalued right now?
Based on GuruFocus' analysis, Bandwidth (BAND) is currently considered Significantly Overvalued. The stock's GF Value™ is $16.01, compared to a current price of $70.96 — trading 343.2% above its estimated fair value. The current EV-to-EBITDA is 61.82, which is 126% above median its 10-year median of 27.30 and 486.2% above the Software industry median of 10.55. Bandwidth's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Bandwidth (BAND), the current EV-to-EBITDA is 61.82 as of Jul. 16, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bandwidth (BAND) Overvalued in 2026?
Based on GuruFocus' analysis, Bandwidth stock appears to be overvalued.
The current stock price of $70.96 is trading 343.2% above its estimated GF Value™ of $16.01.
GuruFocus considers Bandwidth to be Significantly Overvalued.
Key valuation signals for BAND:
EV-to-EBITDA: 61.82 (126% above median its 10-year median of 27.30)
GF Value™: $16.01 vs. price of $70.96 (343.2% above fair value)
Industry Position: 486.2% above the Software median (#1740 of 1950)
No single metric tells the full story. See the BAND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to enterprise customers. The majority of its revenue is generated from usage-based fees that includes voice communication and messaging communication that traverse the platform and network.
71GF Score
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EV-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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