RingCentral, Inc.

DB:3RCA Stock Report

Market Cap: €2.8b

RingCentral Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 3RCA (€33.01) is trading below our estimate of future cash flow value (€116.13)

Significantly Below Future Cash Flow Value: 3RCA is trading below future cash flow 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 profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3RCA. This is calculated by dividing 3RCA's market cap by their current earnings.
What is 3RCA's PE Ratio?
PE Ratio71.1x
EarningsUS$43.39m
Market CapUS$3.25b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 3RCA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.7x
AOF ATOSS Software
24.3x10.97%€1.2b
NEM Nemetschek
35x16.72%€7.6b
TMV TeamViewer
6x8.61%€713.0m
MUM Mensch und Maschine Software
17.4x11.39%€554.1m
3RCA RingCentral
71.1x41.12%€3.2b

Price-To-Earnings vs Peers: 3RCA is expensive based on its Price-To-Earnings Ratio (71.1x) compared to the peer average (20.7x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
3RCA 71.1xIndustry Avg. 21.6xNo. of Companies22PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 3RCA is expensive based on its Price-To-Earnings Ratio (71.1x) compared to the European Software industry average (21.2x).

Price to Earnings Ratio vs Fair Ratio

What is 3RCA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3RCA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio71.1x
Fair PE Ratio41.6x

Price-To-Earnings vs Fair Ratio: 3RCA is expensive based on its Price-To-Earnings Ratio (71.1x) compared to the estimated Fair Price-To-Earnings Ratio (41.6x).

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€33.01
€32.80
-0.63%
19.37%€48.15€25.39n/a15
Mar ’27€29.54
€30.29
+2.54%
14.12%€42.43€24.61n/a15
Feb ’27€21.26
€28.49
+34.02%
13.99%€38.78€23.27n/a15
Jan ’27€24.89
€28.05
+12.68%
13.55%€38.25€22.95n/a16
Dec ’26€24.36
€28.48
+16.92%
13.39%€39.05€23.43n/a17
Nov ’26€25.95
€28.89
+11.33%
20.15%€47.39€23.26n/a17
Oct ’26€24.65
€28.56
+15.86%
20.15%€46.85€23.00n/a17
Sep ’26€25.84
€28.52
+10.38%
20.83%€47.20€23.17n/a17
Aug ’26€21.20
€28.35
+33.71%
21.41%€46.83€20.43n/a17
Jul ’26€23.78
€29.45
+23.84%
23.76%€47.17€20.58n/a18
Jun ’26€22.75
€29.62
+30.21%
21.41%€48.93€21.35n/a17
May ’26€21.65
€30.37
+40.27%
23.15%€48.37€19.35n/a17
Apr ’26€22.88
€34.90
+52.53%
16.89%€50.81€27.71n/a18
Mar ’26€27.41
€36.71
+33.93%
17.66%€52.55€28.67€29.5419
Feb ’26€34.26
€40.29
+17.61%
14.56%€52.44€28.60€21.2619
Jan ’26€34.32
€41.83
+21.88%
12.92%€53.05€35.69€24.8919
Dec ’25€35.95
€41.00
+14.05%
13.61%€52.32€33.29€24.3619
Nov ’25€33.89
€38.51
+13.65%
16.47%€50.75€28.61€25.9519
Oct ’25€28.12
€37.83
+34.54%
16.10%€49.60€27.96€24.6519
Sep ’25€30.81
€38.56
+25.15%
15.89%€50.19€28.29€25.8420
Aug ’25€31.55
€37.04
+17.41%
18.26%€50.88€25.90€21.2021
Jul ’25€26.12
€37.66
+44.17%
17.77%€51.37€26.15€23.7822
Jun ’25€31.92
€37.33
+16.96%
16.87%€50.64€29.47€22.7522
May ’25€28.74
€37.11
+29.13%
17.62%€51.44€28.99€21.6523
Apr ’25€32.30
€37.00
+14.55%
17.18%€50.99€28.74€22.8823
Mar ’25€30.20
€36.78
+21.80%
17.18%€50.69€28.57€27.4123
€33.69
Fair Value
2.0% undervalued intrinsic discount
15
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/03/24 06:02
End of Day Share Price 2026/03/24 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

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.

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 Github.

Analyst Sources

RingCentral, Inc. is covered by 33 analysts. 16 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
Michael FunkBofA Global Research
Matthew VanVlietBTIG