RingCentral, Inc.

DB:3RCA Stock Report

Market Cap: €3.2b

RingCentral Valuation

Is 3RCA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 3RCA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3RCA (€34.41) is trading below our estimate of fair value (€148.01)

Significantly Below Fair Value: 3RCA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3RCA?

Key metric: As 3RCA is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 3RCA. This is calculated by dividing 3RCA's market cap by their current revenue.
What is 3RCA's PS Ratio?
PS Ratio1.4x
SalesUS$2.36b
Market CapUS$3.32b

Price to Sales Ratio vs Peers

How does 3RCA's PS Ratio compare to its peers?

The above table shows the PS ratio for 3RCA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average13.3x
NB2 Northern Data
26.8x31.5%€2.1b
TMV TeamViewer
2.8x6.4%€1.8b
AOF ATOSS Software
11x12.7%€1.8b
NEM Nemetschek
12.4x14.1%€11.5b
3RCA RingCentral
1.4x6.9%€3.3b

Price-To-Sales vs Peers: 3RCA is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (13.3x).

Price to Sales Ratio vs Industry

How does 3RCA's PS Ratio compare vs other companies in the DE Software Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.3x5.5%US$73.12m
CLIQ Cliq Digital
0.09x12.9%US$25.74m
LSX LS telcom
0.5x5.0%US$20.98m
8DQ GetSwift Technologies
0.07xn/aUS$2.53m
3RCA 1.4xIndustry Avg. 1.8xNo. of Companies7PS02.44.87.29.612+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 3RCA is good value based on its Price-To-Sales Ratio (1.4x) compared to the German Software industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 3RCA'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.

3RCA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio4.5x

Price-To-Sales vs Fair Ratio: 3RCA is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).

Analyst Price Targets

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

The above table shows the analyst 3RCA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€34.41
€41.00
+19.2%
13.6%€52.32€33.29n/a19
Nov ’25€33.89
€38.54
+13.7%
16.5%€50.79€28.63n/a19
Oct ’25€28.12
€37.83
+34.5%
16.1%€49.60€27.96n/a19
Sep ’25€30.81
€38.56
+25.1%
15.9%€50.19€28.29n/a20
Aug ’25€31.55
€36.79
+16.6%
18.3%€50.52€25.72n/a21
Jul ’25€26.12
€37.66
+44.2%
17.8%€51.37€26.15n/a22
Jun ’25€31.92
€37.74
+18.2%
16.9%€51.19€29.78n/a22
May ’25€28.74
€37.19
+29.4%
17.6%€51.55€29.05n/a23
Apr ’25€32.30
€36.78
+13.9%
17.2%€50.69€28.57n/a23
Mar ’25€30.20
€36.78
+21.8%
17.2%€50.69€28.57n/a23
Feb ’25€31.25
€37.43
+19.8%
17.3%€50.22€29.22n/a22
Jan ’25€31.20
€37.14
+19.0%
17.7%€50.04€29.12n/a22
Dec ’24€25.95
€38.57
+48.7%
17.0%€51.43€29.92n/a23
Nov ’24€24.25
€40.52
+67.1%
19.1%€61.51€32.17€33.8923
Oct ’24€28.15
€41.40
+47.1%
17.8%€60.83€31.82€28.1223
Sep ’24€28.50
€40.53
+42.2%
17.4%€59.52€31.13€30.8124
Aug ’24€37.10
€41.51
+11.9%
20.6%€58.43€26.97€31.5524
Jul ’24€30.10
€42.50
+41.2%
20.1%€60.21€27.79€26.1224
Jun ’24€32.00
€42.46
+32.7%
21.3%€60.59€27.03€31.9224
May ’24€25.20
€45.08
+78.9%
19.7%€58.99€27.23€28.7424
Apr ’24€27.50
€47.05
+71.1%
18.0%€59.96€32.28€32.3024
Mar ’24€30.52
€49.33
+61.6%
16.3%€61.61€37.92€30.2024
Feb ’24€35.74
€46.86
+31.1%
22.2%€68.27€32.77€31.2525
Jan ’24€33.22
€49.67
+49.5%
25.0%€75.49€33.97€31.2025
Dec ’23€36.55
€51.65
+41.3%
25.3%€77.50€34.87€25.9525
Nov ’23€36.70
€77.71
+111.7%
27.0%€120.42€40.14€24.2525

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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