RingCentral, Inc.

NYSE:RNG Stock Report

Market Cap: US$3.1b

RingCentral Valuation

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

Discounted Cash Flow
Simply Wall St
US$139.52
Fair Value
75.2% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: RNG ($34.67) is trading below our estimate of fair value ($139.52)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RNG. This is calculated by dividing RNG's market cap by their current revenue.
What is RNG's PS Ratio?
PS Ratio1.3x
SalesUS$2.36b
Market CapUS$3.15b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RNG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.1x
FIVN Five9
3.1x9.7%US$3.2b
AVPT AvePoint
11.4x18.0%US$3.6b
ALRM Alarm.com Holdings
3.4x4.3%US$3.1b
BL BlackLine
6.4x8.3%US$4.1b
RNG RingCentral
1.3x6.9%US$3.1b

Price-To-Sales vs Peers: RNG is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (6.1x).

Price to Sales Ratio vs Industry

How does RNG's PS Ratio compare vs other companies in the US Software Industry?

72 CompaniesPrice / SalesEstimated GrowthMarket Cap
NBIS Nebius Group
0.9x-139.4%US$7.99b
VYX NCR Voyix
0.5x-22.3%US$1.89b
PGY Pagaya Technologies
0.8x15.2%US$769.70m
XPER Xperi
0.8x1.8%US$418.27m
RNG 1.3xIndustry Avg. 5.8xNo. of Companies72PS048121620+
72 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RNG is good value based on its Price-To-Sales Ratio (1.3x) compared to the US Software industry average (5.9x).

Price to Sales Ratio vs Fair Ratio

What is RNG'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.

RNG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio4.2x

Price-To-Sales vs Fair Ratio: RNG is good value based on its Price-To-Sales Ratio (1.3x) 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 RNG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$34.67
US$42.26
+21.9%
14.6%US$55.00US$30.00n/a19
Jan ’26US$35.01
US$43.37
+23.9%
12.9%US$55.00US$37.00n/a19
Dec ’25US$37.63
US$43.11
+14.6%
13.6%US$55.00US$35.00n/a19
Nov ’25US$36.45
US$41.74
+14.5%
16.5%US$55.00US$31.00n/a19
Oct ’25US$30.69
US$41.95
+36.7%
16.1%US$55.00US$31.00n/a19
Sep ’25US$33.33
US$42.25
+26.8%
15.9%US$55.00US$31.00n/a20
Aug ’25US$33.45
US$40.05
+19.7%
18.3%US$55.00US$28.00n/a21
Jul ’25US$29.44
US$40.32
+37.0%
17.8%US$55.00US$28.00n/a22
Jun ’25US$34.20
US$40.55
+18.6%
16.9%US$55.00US$32.00n/a22
May ’25US$30.08
US$39.68
+31.9%
17.6%US$55.00US$31.00n/a23
Apr ’25US$33.74
US$39.91
+18.3%
17.2%US$55.00US$31.00n/a23
Mar ’25US$33.87
US$39.91
+17.8%
17.2%US$55.00US$31.00n/a23
Feb ’25US$33.78
US$41.00
+21.4%
17.3%US$55.00US$32.00US$34.8222
Jan ’25US$33.95
US$40.81
+20.2%
17.7%US$55.00US$32.00US$35.0122
Dec ’24US$30.75
US$41.26
+34.2%
17.0%US$55.00US$32.00US$37.6323
Nov ’24US$25.38
US$42.82
+68.7%
19.1%US$65.00US$34.00US$36.4523
Oct ’24US$29.63
US$44.23
+49.3%
17.8%US$65.00US$34.00US$30.6923
Sep ’24US$31.93
US$44.27
+38.6%
17.4%US$65.00US$34.00US$33.3324
Aug ’24US$41.54
US$46.18
+11.2%
20.6%US$65.00US$30.00US$33.4524
Jul ’24US$32.73
US$45.88
+40.2%
20.1%US$65.00US$30.00US$29.4424
Jun ’24US$35.51
US$45.55
+28.3%
21.3%US$65.00US$29.00US$34.2024
May ’24US$27.96
US$49.67
+77.6%
19.7%US$65.00US$30.00US$30.0824
Apr ’24US$30.67
US$51.00
+66.3%
18.0%US$65.00US$35.00US$33.7424
Mar ’24US$33.04
US$52.04
+57.5%
16.3%US$65.00US$40.00US$33.8724
Feb ’24US$42.28
US$51.48
+21.8%
22.2%US$75.00US$36.00US$33.7825
Analyst Price Target
Consensus Narrative from 19 Analysts
US$42.26
Fair Value
18.0% undervalued intrinsic discount
19
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 08:17
End of Day Share Price 2025/02/06 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.

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 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