Ooma

OVERVALUEDOOMA · NYSE · Communication Services
OOMA·NYSE·Communication Services
OVERVALUED
Ooma
17.0%downside
MARKET PRICE
$16.25
FAIR PRICE
$13.49
MARGIN
$2.76
UNDERVALUEDFAIROVERVALUED
P/E RATIO
73.2x
DIV. YIELD
N/A
ROE
7.2%
MARKET CAP
$443M
FPI
fairpriceindex.com

FAIR PRICE VALUATION

17.0%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$16.25

FAIR PRICE

$13.49

MARGIN

$2.76

UNDERVALUEDFAIROVERVALUED

P/E Ratio

73.2x

What is P/E? →

Div. Yield

N/A

ROE

7.2%

Average

Market Cap

$443M

Small-cap

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FPI RATING

4.5/ 10

Low debt levels, but below-average fundamental quality and expensive valuation relative to fundamentals.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$10.79CONSERVATIVE ENTRY
$13.49FAIR PRICE
$16.25MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$10.79

Fair price × 0.80

DISTANCE

33.6%

Price to entry level

At the current price of $16.25, OOMA trades 33.6% above the conservative entry level of $10.79. This entry level represents a 20% margin of safety below the calculated fair price of $13.49 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate OOMA's fair price

Ooma's fair price of $13.49 is derived from a blended model that combines DCF analysis (50%), relative valuation against Communication Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $16.25, OOMA trades 17.0% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting OOMA's risk profile.

RELATIVE · 30%

Comparing OOMA's valuation multiples against Communication Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for OOMA, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate OOMA's fair value with your own inputs.

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FAQ

What is the fair price of OOMA?+

Based on our blended model combining DCF analysis (50%), relative valuation against Communication Services peers (30%), and analyst consensus (20%), the fair price for Ooma is $13.49. At the current market price of $16.25, OOMA trades 17.0% above its calculated fair value.

Is OOMA overvalued or undervalued?+

Ooma is currently overvalued based on our valuation model. The stock trades at $16.25, which is 17.0% above the fair price of $13.49. The P/E ratio of 73.2x is a key metric in the valuation.

What is the margin of safety for OOMA?+

With a 20% margin of safety applied to the fair price of $13.49, the conservative entry level for OOMA is $10.79. At the current market price of $16.25, the stock trades 33.6% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is OOMA's fair price updated?+

We update fair price calculations for OOMA daily after market close. The current fair price of $13.49 incorporates the latest market data and sector multiples.

What factors affect OOMA's fair price calculation?+

OOMA's fair price of $13.49 is derived from DCF analysis (50% weight), relative valuation against Communication Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 73.2x, ROE of 7.2%.

Is OOMA a good buy right now?+

At $16.25, OOMA trades 17.0% above our fair value estimate of $13.49. The stock is currently overvalued. ROE stands at 7.2% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does OOMA pay dividends?+

OOMA does not currently pay a dividend.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.