* Note: Prices are in Million (M) USD.
Description:
Bill.com Holdings, Inc. provides cloud-based software that digitizes and automates financial back-office operations for small and medium-sized businesses globally. The company is headquartered in Palo Alto, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,140 M
Debt : $1,773 M
EBITDA : $123 M
Net Debt (Debt - Cash): $633 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Manufacturing
Industry: Software and other prerecorded compact disc, tape, and record reproducing
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 24.50
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 8 overlapping fiscal years (max 20).Average Free Cash Flow: $86 M
Average Revenue: $628 M
Revenue Converted To Free Cash Flow (%): 13.6%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-06-30): $1,463 M
Revenue 4 Years Ago (2021-06-30): $238 M
Last 5 Years Average Revenue Growth: 103%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-06-30): $104 M
Share Count 5 Years Ago (2021-06-30): $83 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.10
Trailing 12-Month Earnings Per Share (EPS): $2.22
Average Earnings Per Share (EPS): $2.16
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: -3.7%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $53
52-Week Low: $37
Threshold Price (15% Above 52-Week Low): $42
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $5,175 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 14 points to above Bill Com Holdings Inc (BILL) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 2 Years Avg PE
40.00 (>2× median)
• Growth Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 2 Years Avg P/E (40.00)
× EPS ($2.16) = $86.40.
Last 2 Years Avg PE
40, Fair Value PE
20, Industry Based PE
15, Growth Based PE
50, RCFC Based PE
13.63, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 6 values, average assigned is
26.04. Value-Trades has assined P/E value
26.04. An average (Current Year EPS + Next Year EPS) earning per share is
$2.16.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $56.24 (PE 26.04 × EPS $2.16)
Fair value using simple average PE × EPS: $86.40 (PE 40.00 × EPS $2.16)
Lesser of these two: $56.24
So the Final Fair Value is: $56.24
