MeritValue

8X8 INC /DE/

EGHTdata completeness 100%17 fiscal years on file
The thesis, from the filings

8X8 INC /DE/ earns about -7% on invested capital, below its ~9% cost of capital, but has diluted owners by 26% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $10.12 and $21.72 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$638.1M1$743.9M2$728.7M3$715.1M3$735.8M3
Net income−$175.4M4−$73.1M5−$67.6M6−$27.2M6$1.65M6
Operating cash flow$34.7M7$48.8M8$79M9$63.6M9$55.8M9
Capital expenditure$4.14M10$2.99M11$2.65M12$2.4M12$3.68M12
Free cash flow (derived)$30.5M7$45.8M8$76.3M9$61.2M9$52.1M9
Total debt$447.5M13—$819.4M14$699.9M15$643M15
Cash & equivalents$91.2M16$111.4M17$116.3M18$88.1M18$93.3M18
Diluted shares113.4M116.0M121.1M129.8M142.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$10.28
your share of equity
Profit it earned you last year
$0.12
Free cash flow it threw off
$3.65
Debt you’d be carrying
$45.08

10 shares is a claim on $10.28 of net worth that earned you $0.12 and generated $3.65 of cash last year, against $45.08 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-7% avg · 5y
FY22 -26%FY23 —FY24 -2%FY25 1%FY26 2%

It earned about -7% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+26% shares · 5y

Share count is up 26% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 44% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $10.12 and $21.72 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$21.72
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$61.2M
DCF · Growth Exit 5Y
$10.12
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$61.2M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$0.48
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $10.12
The three cases
Bear0.0%$2.27
Base20.0%$10.12
Bull20.0%$10.12

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-03-31 · accession 0001023731-24-000042 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-03-31 · accession 0001023731-25-000039 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-03-31 · accession 0001023731-26-000041 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-03-31 · accession 0001023731-24-000042 (NetIncomeLoss)
  5. 10-K · period ending 2023-03-31 · accession 0001023731-25-000039 (NetIncomeLoss)
  6. 10-K · period ending 2024-03-31 · accession 0001023731-26-000041 (NetIncomeLoss)
  7. 10-K · period ending 2022-03-31 · accession 0001023731-24-000042 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-03-31 · accession 0001023731-25-000039 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-03-31 · accession 0001023731-26-000041 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-03-31 · accession 0001023731-24-000042 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-03-31 · accession 0001023731-25-000039 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-03-31 · accession 0001023731-26-000041 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-03-31 · accession 0001023731-22-000087 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2024-03-31 · accession 0001023731-25-000039 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2025-03-31 · accession 0001023731-26-000041 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2022-03-31 · accession 0001023731-24-000042 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-03-31 · accession 0001023731-25-000039 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-03-31 · accession 0001023731-26-000041 (CashAndCashEquivalentsAtCarryingValue)