RingCentral, Inc.

LSE:0V50 Stock Report

Market Cap: US$3.2b

RingCentral Valuation

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

Below Fair Value: 0V50 ($34.34) is trading below our estimate of fair value ($141.46)

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 unprofitable 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 Ratio1.4x
SalesUS$2.36b
Market CapUS$3.24b

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
5.3x11.0%UK£1.1b
GBG GB Group
3.1x6.1%UK£848.6m
ALFA Alfa Financial Software Holdings
6.8x9.6%UK£692.1m
SGE Sage Group
4.8x7.7%UK£10.8b
0V50 RingCentral
1.4x6.9%US$3.2b

Price-To-Sales vs Peers: 0V50 is good value based on its Price-To-Sales Ratio (1.4x) 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?

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.4xn/aUS$83.18m
SWG Shearwater Group
0.4xn/aUS$10.21m
MBO MobilityOne
0.01xn/aUS$3.02m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
0V50 1.4xIndustry Avg. 2.6xNo. of Companies13PS0246810+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0V50 is good value based on its Price-To-Sales Ratio (1.4x) compared to the UK Software industry average (2.6x).

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 Ratio1.4x
Fair PS Ratio5.5x

Price-To-Sales vs Fair Ratio: 0V50 is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (5.5x).

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 0V50 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$34.60
US$43.11
+24.6%
13.6%US$55.00US$35.00n/a19
Nov ’25US$36.21
US$41.74
+15.3%
16.5%US$55.00US$31.00n/a19
Oct ’25US$30.68
US$41.95
+36.7%
16.1%US$55.00US$31.00n/a19
Sep ’25US$33.68
US$42.25
+25.4%
15.9%US$55.00US$31.00n/a20
Aug ’25US$33.15
US$40.05
+20.8%
18.3%US$55.00US$28.00n/a21
Jul ’25US$28.44
US$40.32
+41.8%
17.8%US$55.00US$28.00n/a22
Jun ’25US$33.60
US$40.55
+20.7%
16.9%US$55.00US$32.00n/a22
May ’25US$29.82
US$39.68
+33.0%
17.6%US$55.00US$31.00n/a23
Apr ’25US$34.88
US$39.91
+14.4%
17.2%US$55.00US$31.00n/a23
Mar ’25US$33.74
US$39.91
+18.3%
17.2%US$55.00US$31.00n/a23
Feb ’25US$33.30
US$41.00
+23.1%
17.3%US$55.00US$32.00n/a22
Jan ’25US$34.26
US$40.81
+19.1%
17.7%US$55.00US$32.00n/a22
Dec ’24US$30.35
US$41.26
+35.9%
17.0%US$55.00US$32.00n/a23
Nov ’24US$25.57
US$42.82
+67.5%
19.1%US$65.00US$34.00US$36.2123
Oct ’24US$28.34
US$44.23
+56.1%
17.8%US$65.00US$34.00US$30.6823
Sep ’24US$31.15
US$44.27
+42.1%
17.4%US$65.00US$34.00US$33.6824
Aug ’24US$41.45
US$46.18
+11.4%
20.6%US$65.00US$30.00US$33.1524
Jul ’24US$32.81
US$45.88
+39.8%
20.1%US$65.00US$30.00US$28.4424
Jun ’24US$36.24
US$45.55
+25.7%
21.3%US$65.00US$29.00US$33.6024
May ’24US$27.67
US$49.67
+79.5%
19.7%US$65.00US$30.00US$29.8224
Apr ’24US$30.40
US$51.00
+67.8%
18.0%US$65.00US$35.00US$34.8824
Mar ’24US$32.94
US$52.04
+58.0%
16.3%US$65.00US$40.00US$33.7424
Feb ’24US$38.92
US$51.48
+32.3%
22.2%US$75.00US$36.00US$33.3025
Jan ’24US$35.29
US$52.64
+49.2%
25.0%US$80.00US$36.00US$34.2625
Dec ’23US$35.00
US$53.32
+52.3%
25.3%US$80.00US$36.00US$30.3525
Nov ’23US$35.40
US$77.44
+118.7%
27.0%US$120.00US$40.00US$25.5725

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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