8x8, Inc. (EGHT) is a publicly traded company in the Technology — Software - Application industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
8x8, Inc. delivers a comprehensive suite of cloud-based communication and collaboration tools, encompassing telephony, video conferencing, instant messaging, customer engagement platforms, and powerful API services. These Software-as-a-Service (SaaS) solutions cater to a diverse global clientele, ranging from small and medium-sized enterprises to major corporations, government bodies, and various other organizations.
Analysis Summary
8x8, Inc. reported revenue of $735.8M in the most recent fiscal year, growing at a 5-year CAGR of 6.7%.
Trailing-twelve-month margins: gross margin 63.4%, operating margin 3.6%, net margin 0.6%.
At the current price of $1.80, EGHT trades at a P/E of 53.10 and an ROE of 3.34%. Market capitalisation stands at $255M.
Balance sheet quality for EGHT: current ratio of 1.1, net debt of $277.7M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $52.0M represents 3158% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Price
| Price | $1.80 |
| Market Cap | $255M |
| Exchange | NASDAQ |
| Country | US |
Valuation Ratios
| P/E Ratio | 53.10 |
| Price / Book | 1.68 |
| EV / EBITDA | 9.13 |
| Dividend Yield | 0.00% |
Profitability
| Return on Equity | 3.34% |
| Return on Invested Capital | 3.95% |
| Return on Assets | 0.71% |
| Gross Margin | 63.38% |
| Operating Margin | 3.60% |
| Net Margin | 0.64% |
Financial Health
| Debt / Equity | 2.42 |
| Current Ratio | 1.05 |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| EGHT | 8x8, Inc. | $255M | 53.10 | 1.68 | 3.3% |
| SAP | SAP SE | $248.4B | 28.22 | 4.98 | 17.6% |
| SHOP.TO | Shopify Inc. | $235.9B | 170.79 | 15.84 | 9.3% |
| CRM | Salesforce, Inc. | $205.2B | 23.51 | 5.52 | 20.2% |
| SHOP | Shopify Inc. | $168.6B | 87.97 | 13.38 | 15.1% |
| 0VHA.L | Shopify Inc. | $163.6B | |||
| 0L5N.L | ServiceNow, Inc. | $146.3B | |||
| NOW | ServiceNow, Inc. | $144.6B | 92.98 | 12.36 | 13.8% |
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Explore sector: Technology · Software - Application
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