RingCentral, Inc.

LSE:0V50 Stock Report

Market Cap: US$2.4b

RingCentral Valuation

Is 0V50 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 0V50 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

US$100.21
Fair Value
71.3% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: 0V50 ($28.74) is trading below our estimate of fair value ($100.21)

Significantly Below Fair Value: 0V50 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0V50?

Key metric: As 0V50 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0V50. This is calculated by dividing 0V50's market cap by their current revenue.
What is 0V50's PS Ratio?
PS Ratio1x
SalesUS$2.49b
Market CapUS$2.44b

Price to Sales Ratio vs Peers

How does 0V50's PS Ratio compare to its peers?

The above table shows the PS ratio for 0V50 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5x
BYIT Bytes Technology Group
3.7x7.68%UK£813.4m
ALFA Alfa Financial Software Holdings
5.5x7.75%UK£661.7m
GBG GB Group
2.1x4.63%UK£604.2m
CER Cerillion
8.8x10.91%UK£398.3m
0V50 RingCentral
1x4.57%US$2.4b

Price-To-Sales vs Peers: 0V50 is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (5x).

Price to Sales Ratio vs Industry

How does 0V50's PS Ratio compare vs other companies in the GB Software Industry?

14 CompaniesPrice / SalesEstimated GrowthMarket Cap
SWG Shearwater Group
0.3xn/aUS$14.02m
ZOO ZOO Digital Group
0.3xn/aUS$13.98m
ESYS essensys
0.4x-18.89%US$12.42m
S247 Smarttech247 Group
0.4x4.50%US$6.46m
0V50 1.0xIndustry Avg. 3.2xNo. of Companies14PS0246810+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0V50 is good value based on its Price-To-Sales Ratio (1x) compared to the UK Software industry average (3.2x).

Price to Sales Ratio vs Fair Ratio

What is 0V50'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.

0V50 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio4.2x

Price-To-Sales vs Fair Ratio: 0V50 is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (4.2x).

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 0V50 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$28.74
US$32.82
+14.20%
13.39%US$45.00US$27.00n/a17
Nov ’26US$29.97
US$33.53
+11.90%
20.15%US$55.00US$27.00n/a17
Oct ’26US$28.96
US$33.53
+15.78%
20.15%US$55.00US$27.00n/a17
Sep ’26US$30.83
US$33.24
+7.82%
20.83%US$55.00US$27.00n/a17
Aug ’26US$23.93
US$33.29
+39.15%
21.41%US$55.00US$24.00n/a17
Jul ’26US$29.43
US$34.34
+16.69%
23.76%US$55.00US$24.00n/a18
Jun ’26US$25.70
US$33.29
+29.55%
21.41%US$55.00US$24.00n/a17
May ’26US$25.77
US$34.53
+33.99%
23.15%US$55.00US$22.00n/a17
Apr ’26US$25.19
US$37.78
+49.97%
16.89%US$55.00US$30.00n/a18
Mar ’26US$28.14
US$38.42
+36.54%
17.66%US$55.00US$30.00n/a19
Feb ’26US$35.36
US$42.26
+19.52%
14.56%US$55.00US$30.00n/a19
Jan ’26US$35.16
US$43.37
+23.33%
12.92%US$55.00US$37.00n/a19
Dec ’25US$37.65
US$43.11
+14.48%
13.61%US$55.00US$35.00US$28.7419
Nov ’25US$36.21
US$41.74
+15.26%
16.47%US$55.00US$31.00US$29.9719
Oct ’25US$30.68
US$41.95
+36.74%
16.10%US$55.00US$31.00US$28.9619
Sep ’25US$33.68
US$42.25
+25.45%
15.89%US$55.00US$31.00US$30.8320
Aug ’25US$33.15
US$40.05
+20.81%
18.26%US$55.00US$28.00US$23.9321
Jul ’25US$28.44
US$40.32
+41.79%
17.77%US$55.00US$28.00US$29.4322
Jun ’25US$33.60
US$40.55
+20.69%
16.87%US$55.00US$32.00US$25.7022
May ’25US$29.82
US$39.68
+33.04%
17.62%US$55.00US$31.00US$25.7723
Apr ’25US$34.88
US$39.91
+14.43%
17.18%US$55.00US$31.00US$25.1923
Mar ’25US$33.74
US$39.91
+18.30%
17.18%US$55.00US$31.00US$28.1423
Feb ’25US$33.30
US$41.00
+23.12%
17.34%US$55.00US$32.00US$35.3622
Jan ’25US$34.26
US$40.81
+19.13%
17.73%US$55.00US$32.00US$35.1622
Dec ’24US$30.35
US$41.26
+35.94%
16.95%US$55.00US$32.00US$37.6523
US$33.41
Fair Value
14.0% undervalued intrinsic discount
17
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 Analysis2025/12/01 00:32
End of Day Share Price 2025/12/01 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

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 37 analysts. 18 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