BAND (Bandwidth) 3-Year RORE % : -40.00% (As of Mar. 2026)


BAND Bandwidth Inc BAND
70 GF Score
Price $60.89
GF Value $15.94
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Bandwidth 3-Year RORE %?

Bandwidth BAND +7.01% 70 3-Year RORE % is -40.00 as of Mar. 2026. GuruFocus rates BAND with a GF Score™ of 70/100 and a GF Value™ of $15.94 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,540 Software companies, Bandwidth ranks worse than 76.18% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Bandwidth's 3-Year RORE % for the quarter that ended in Mar. 2026 was -40.00%.

The industry rank for Bandwidth's 3-Year RORE % or its related term are showing as below:

BAND's 3-Year RORE % is ranked worse than
76.18% of 2540 companies
in the Software industry
Industry Median: 2.94 vs BAND: -40.00

Bandwidth  (NAS:BAND) 3-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Bandwidth 3-Year RORE % Related Terms


Bandwidth 3-Year RORE % Historical Data

* Premium members only.

The historical data trend for Bandwidth's 3-Year RORE % 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.

Bandwidth 3-Year RORE % Chart

Bandwidth Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.21 -30.39 -1.75 -6.01 -30.24

Bandwidth Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
3-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -16.89 -13.33 -18.96 -30.24 -40.00

BAND vs WIX, MQ, EVTC: 3-Year RORE % Comparison

For the Software - Infrastructure subindustry, Bandwidth's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Software Industry

For the Software industry and Technology sector, Bandwidth's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Bandwidth's 3-Year RORE % falls into.


BAND
70GF Score
Bandwidth Inc BAND
3-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Bandwidth 3-Year RORE % Calculation

Bandwidth's 3-Year RORE % for the quarter that ended in Mar. 2026 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( -0.38--1.12 )/( -1.85-0 )
=0.74/-1.85
=-40.00 %

* 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.

In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.

Frequently Asked Questions Learn more about 3-Year RORE % →
What does a 3-Year RORE % of -40.00 mean?
Bandwidth (BAND) has a 3-Year RORE % of -40.00 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Bandwidth and its competitors. According to the industry distribution chart, Bandwidth ranks #1935 out of 2540 companies in the Software industry, placing it in the top 76.2%.
Is Bandwidth's 3-Year RORE % too high?
Bandwidth's current 3-Year RORE % is -40.00. Based on the distribution chart, Bandwidth ranks #1935 out of 2540 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Bandwidth has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bandwidth's 3-Year RORE % compare to WIX and MQ?
According to the Software industry distribution chart, Bandwidth ranks #1935 out of 2540 companies for 3-Year RORE %. This places Bandwidth in the lower half of its industry. The industry median 3-Year RORE % is 2.94. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Software company?
The median 3-Year RORE % among Software companies is 2.94, based on 2,540 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Bandwidth and its competitors. For the Software industry, the median 3-Year RORE % is 2.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bandwidth's current 3-Year RORE % is -40.00. 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 $15.94, compared to a current price of $60.89 — trading 282% above its estimated fair value. The current 3-Year RORE % is -40.00. Bandwidth's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Bandwidth (BAND), the current 3-Year RORE % is -40.00 as of Mar. 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 $60.89 is trading 282% above its estimated GF Value™ of $15.94. GuruFocus considers Bandwidth to be Significantly Overvalued.

Key valuation signals for BAND:

  • 3-Year RORE %: -40.00
  • GF Value™: $15.94 vs. price of $60.89 (282% above fair value)
  • GF Score™: 70/100 with 5 warning signs

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 Business Description

Other Exchanges 5XB:Germany
Address 2230 Bandmate Way, Raleigh, NC, USA, 27607
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.
70GF Score

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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$60.89
Price
$15.94
GF Value