RingCentral Valuation

Is R2NG34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Share Price vs Fair Value

What is the Fair Price of R2NG34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
R$27.09
Fair Value
69.5% undervalued intrinsic discount
19
Number of Analysts


Key Valuation Metric

Which metric is best to use when looking at relative valuation for R2NG34?

Key metric:

The above table shows the Price to Sales ratio for R2NG34. This is calculated by dividing R2NG34's market cap by their current revenue.
What is R2NG34's PS Ratio?
PS Ratio1.3x
SalesUS$2.36b
Market CapUS$3.13b

Price to Sales Ratio vs Peers

How does R2NG34's PS Ratio compare to its peers?

The above table shows the PS ratio for R2NG34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.9x
TOTS3 TOTVS
4x13.0%R$19.5b
NGRD3 Neogrid Participações
0.7x13.2%R$197.8m
FIVN Five9
3.1x9.7%US$3.1b
CLSA3 ClearSale
4xn/aR$1.9b
R2NG34 RingCentral
1.3x6.9%R$3.1b


Price to Sales Ratio vs Industry

How does R2NG34's PS Ratio compare vs other companies in the Global Software Industry?

240 CompaniesPrice / SalesEstimated GrowthMarket Cap
R2NG34 1.3xIndustry Avg. 3.3xNo. of Companies240PS02.85.68.411.214+
240 CompaniesEstimated GrowthMarket Cap
No more companies


Price to Sales Ratio vs Fair Ratio

What is R2NG34's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

R2NG34 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ration/a


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Price Target
Consensus Narrative from 19 Analysts
R$10.04
Fair Value
17.6% undervalued intrinsic discount
19
Number of Analysts


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/01 01:44
End of Day Share Price 2025/01/30 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

RingCentral, Inc. is covered by 43 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William PowerBaird
Ishan MajumdarBaptista Research
Ryan MacWilliamsBarclays