Positioning no disclosures inside 60 days, left as found
Options put/call open interest 6.28, read 2026-11-03
Ethical does not pass the values gate
Price43.38 USD
Fair value55.64
Ethical score70.0/100
Value readUndervaluedas of 4 Nov 2026
Our investment reviews on this name
2026-10-13Read Distribution53.27-18.6% to today ✓Markup gives way to Distribution first Distribution read since August
2026-10-02Read Markup54.31-20.1% to today Distribution gives way to Markup first Markup read since July
2026-08-22Read Distribution51.97-16.5% to today ✓Markup gives way to Distribution after a 20% slide in 7 weeks
2026-07-02Read Markup65.34-33.6% to today First review on file: Markup
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Bandwidth Inc. holds its Distribution at $43.38. The statistical read favours the sellers, held for 3 days.
As held on the ledger · 2026-11-04
Phase
Distribution · caution
Quantitative state
The statistical read favours the sellers, held for 3 days
Price at the screen
$43.38
Valuation
N/A trailing · 20.19 forward price to earnings
Values screen
FAIL· score 70.0
Beta
3.15
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
45.61%
Below 33%
Interest-bearing debt is 45.6% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.81%
Below 33%
Cash held in interest-bearing accounts and securities is 0.8% of assets, under the one-third limit.
Pass
Receivables
13.05%
Below 49%
Money owed to the company is 13.0% of assets, under the 49% limit.
Pass
Revenue purity
0.04%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Bandwidth's business is in a permissible area, but its interest-bearing debt is about 46% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Undervalued vs our fair value, as of 4 Nov 2026: it trades at roughly a 22% discount to our $55.64 fair value, 22.00% revenue growth.
Fair value range in USD, drawn from the 2026-11-04 screen. The gold marker is the market price at the same screen. A 22.0% discount to the base estimate.
Where our models see it going: fair-value estimate $55.64, with a range of $46.80 to $63.98, dated to the 2026-11-04 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Cloud calls platform priced far above its worth
Every time a firm wires voice or messages through the cloud, it leans on platforms that promise scale without the old telco headaches. Bandwidth looks like one of those tools, yet the market prices it at 71.81 against a fair value nearer 57.16, a clear 20 percent stretch with no margin of safety. Forward earnings sit at 31.8 times while the firm still posts a negative 1 percent profit margin and return on equity, so the numbers give no reason to step in.
Revenue growth of 20 percent sounds decent on paper, yet losses persist and the unknown moat leaves little protection if bigger rivals tighten their grip. Analysts may lean buy with a 65 median target, but that still sits below the current quote and fails to close the gap to fair value. Ethical checks clear, yet valuation and cash reality override that single green light.
High multiples on unprofitable growth often trap buyers when spending slows or competition sharpens, and here the gap to fair value already signals that risk. Currency moves or slower enterprise budgets could widen the hole further. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
BAND trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-05Distribution$43.38-10.5%Entry 17
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 10.5% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 36% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56. Insiders have been net sellers over the past quarter. Since the last review it entered the Tech 100; its composite score rose.
2026-10-29Distribution$48.45+3.5%Entry 16
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 3.5% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 36% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-28Distribution$46.82+0.0%Entry 15
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 36% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-27Distribution$46.82+0.0%Entry 14
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 36% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-26Distribution$46.82+0.0%Entry 13
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 36% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-25Distribution$46.82+0.0%Entry 12
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 57% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-24Distribution$46.82+0.0%Entry 11
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 57% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-23Distribution$46.82+0.0%Entry 10
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 57% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-22Distribution$46.82-5.6%Entry 9
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 5.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 57% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-20Distribution$49.60-6.9%Entry 8
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 6.9% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 57% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 314%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (4 analysts) rates it buy, with a mean price target of $56.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
