RingCentral RNG
United StatesTechnology · Software - ApplicationUSD
57.64 USD (−24.7%)
14 analysts
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RingCentral is a provider of cloud-based business communications solutions (UCaaS and CPaaS), offering voice, video, messaging and contact center as a subscription service.
Key points
from its scores- ✓Good share-price trend9.8
- ✓High-quality business9.5
- ✓Strong growth7.9
- ✕Little or no dividend3.3
- !Balance sheet could be stronger5.0
AI analysis
bottom line, main risk, context and newsThe combination of quality, reasonable forward valuation and strong momentum offsets moderate revenue growth.
RingCentral shows adequate financial health (ND/EBITDA of 2.54) and exceptional moat quality (gross margin of 71.86%), with attractive forward valuation (forward P/E of 13.72, PEG of 0.38) and strong 12-month momentum of 162.55%, although revenue growth is moderate (5.90%).
The main risk is intense competition in the unified communications market (Microsoft Teams, Zoom), which could pressure revenue growth and margins in the medium term.
Context and risks
RingCentral operates in cloud communications software, a sector with no material exposure to interest rates, commodities or shipping routes. Its balance sheet is sound (Net Debt/EBITDA of 2.54) and its subscription business generates recurring cash flows, so the current macro context does not alter its risk profile.
Is RingCentral stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 43% above the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 61.2 | 31.3 | +96% |
| EV / EBITDA | 18.4 | 20.4 | −10% |
| Price / sales | 2.5 | 5.3 | −53% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.1 out of 10 (median for Technology: 5.3).
Average analyst target: 57.64 USD, −24.7% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 9.5 (sector 6.4), Growth 7.9 (sector 7.5).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 61.2
- Forward P/E
- 13.7
- EV / EBITDA
- 18.4
- Price / book
- −10.5
- Price / sales
- 2.5
- PEG
- 0.38
- Market cap
- 6.4B USD
- Enterprise value
- 7.6B USD
Profitability
- ROA
- 7.9%
- Gross margin
- 71.9%
- Operating margin
- 8.8%
- Net margin
- 4.3%
- Free cash flow
- 639.5M USD
- FCF yield
- 10.0%
- Cash conversion
- 154%
Solvency
- Total debt
- 1.2B USD
- Net debt
- 1.1B USD
- Cash
- 111.5M USD
- EBITDA
- 414.6M USD
- Net debt / EBITDA
- 2.54
- Current ratio
- 1.11
- Quick ratio
- 0.76
Growth
- Revenue growth
- +5.9%
- Earnings growth
- +221.4%
- EPS (TTM)
- 1.25 USD
- EPS (forward)
- 5.58 USD
Dividend
- Dividend yield
- 0.4%
- Payout
- 12.0%
Risk and market
- Beta
- 1.11
- Analyst consensus
- none (14)
- Target price
- 57.64 USD
- 52-week range
- 24.14 – 81.90
Recent news
All RNG news →Compare it with its sector
All 283 in Technology →Frequently asked questions about RingCentral
Is RingCentral stock cheap or expensive?
On P/E and EV / EBITDA, it trades 43% above the Technology median on average. Valuation score: 7.1 out of 10 (median for Technology: 5.3). Average analyst target: 57.64 USD, −24.7% versus the price. This is not investment advice.
What score does RingCentral get on MeridIAn Screener?
It scores 7.4 out of 10, rank 70 of 2,130 (better than 97% of the companies analysed). Its strongest category is Momentum (9.8) and its weakest, Dividend (3.3). Analysis of 08/10/2026.
What is RingCentral's P/E ratio?
Its P/E is 61.2: the share price equals 61.2 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 13.7.
How much is RingCentral worth on the stock market?
Its market capitalisation is 6.4B USD and its enterprise value, debt included, is 7.6B USD.
How much debt does RingCentral have?
Its net debt (debt minus cash) is 1.1B USD. That is 2.54 times its EBITDA; the Technology median is 0.20.
Does RingCentral pay a dividend?
Yes: its dividend yield is 0.37% and it pays out 12% of its earnings.
How has RingCentral stock performed over the last year?
It has risen 191.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 24.14 and 81.90 USD. Past performance does not guarantee future results.
What do analysts think of RingCentral?
14 analysts cover it; their average recommendation is “none” and their average target is 57.64 USD (−24.7% versus the price). It is an estimate, not market data.