TGM's two-stage DCF values 8x8, Inc. (EGHT) between $2.14 and $4.35 depending on assumptions, with a base case of $3.08. Growth is taken from the company's own record (5-year revenue CAGR), fading to 2.5% long-run; the discount rate (11.5%) reflects its beta.
What would today's price require?
$2.17 is justified only if free cash flow grows about +0.5% a year (fading to 2.5% long-run) at a 11.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 2.9%/yr | 12.5% | $2.14 |
| Base case | 5.9%/yr | 11.5% | $3.08 |
| Optimistic | 8.9%/yr | 10.5% | $4.35 |
Current Price
$2.17
Market-Implied Growth
+0.5%/yr
vs +5.9% 5Y actual
Model Scenario Range
$2.14 – $4.35
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for EGHT (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $51.1M · 0.14B shares · net debt $228.2M
Estimated Fair Value
$3.08
+41.6% vs $2.17
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.9%/yr FCF growth and 10-year horizon fixed. Green = above today's $2.17; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 9.5% | $3.85 | $4.13 | $4.45 | $4.83 | $5.26 |
| 10.5% | $3.23 | $3.44 | $3.68 | $3.95 | $4.26 |
| 11.5% | $2.73 | $2.90 | $3.08 | $3.29 | $3.52 |
| 12.5% | $2.32 | $2.45 | $2.60 | $2.76 | $2.94 |
| 13.5% | $1.98 | $2.09 | $2.21 | $2.34 | $2.48 |
