RingCentral Valuation

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

Below Fair Value: RNG ($34.74) is trading below our estimate of fair value ($78.19)

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?

Other financial metrics that can be useful for relative valuation.

RNG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.2x
Enterprise Value/EBITDA87.8x
PEG Ration/a

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 Average6.3x
AI C3.ai
11.1x17.1%US$3.3b
INST Instructure Holdings
5.9x13.8%US$3.1b
CXM Sprinklr
4.6x10.3%US$3.6b
AYX Alteryx
3.6x10.3%US$3.5b
RNG RingCentral
1.5x7.4%US$3.2b

Price-To-Sales vs Peers: RNG is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (6.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.5%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.5%
n/an/an/a
No more companies

Price-To-Sales vs Industry: RNG is good value based on its Price-To-Sales Ratio (1.5x) compared to the US Software industry average (4.3x).


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 Ratio1.5x
Fair PS Ratio4.1x

Price-To-Sales vs Fair Ratio: RNG is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (4.1x).


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$34.74
US$39.91
+14.9%
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$32.00n/a22
Jan ’25US$33.95
US$40.81
+20.2%
17.7%US$55.00US$32.00n/a22
Dec ’24US$30.75
US$41.26
+34.2%
17.0%US$55.00US$32.00n/a23
Nov ’24US$25.38
US$42.82
+68.7%
19.1%US$65.00US$34.00n/a23
Oct ’24US$29.63
US$44.23
+49.3%
17.8%US$65.00US$34.00n/a23
Sep ’24US$31.93
US$44.27
+38.6%
17.4%US$65.00US$34.00n/a24
Aug ’24US$41.54
US$46.18
+11.2%
20.6%US$65.00US$30.00n/a24
Jul ’24US$32.73
US$45.88
+40.2%
20.1%US$65.00US$30.00n/a24
Jun ’24US$35.51
US$45.55
+28.3%
21.3%US$65.00US$29.00n/a24
May ’24US$27.96
US$49.67
+77.6%
19.7%US$65.00US$30.00n/a24
Apr ’24US$30.67
US$51.00
+66.3%
18.0%US$65.00US$35.00n/a24
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
Jan ’24US$35.40
US$52.64
+48.7%
25.0%US$80.00US$36.00US$33.9525
Dec ’23US$38.87
US$53.32
+37.2%
25.3%US$80.00US$36.00US$30.7525
Nov ’23US$35.49
US$77.44
+118.2%
27.0%US$120.00US$40.00US$25.3825
Oct ’23US$39.96
US$83.52
+109.0%
26.5%US$125.00US$40.00US$29.6325
Sep ’23US$42.70
US$86.13
+101.7%
22.9%US$125.00US$58.00US$31.9324
Aug ’23US$48.71
US$107.70
+121.1%
29.1%US$175.00US$58.00US$41.5423
Jul ’23US$55.23
US$116.04
+110.1%
23.2%US$175.00US$64.00US$32.7324
Jun ’23US$62.88
US$125.67
+99.9%
33.4%US$275.00US$80.00US$35.5124
May ’23US$84.85
US$212.21
+150.1%
25.0%US$300.00US$115.00US$27.9624
Apr ’23US$121.17
US$229.23
+89.2%
17.7%US$300.00US$165.00US$30.6726
Mar ’23US$125.83
US$231.73
+84.2%
17.2%US$300.00US$165.00US$33.0426

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


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