RBBN PE Ratio & Valuation,Is RBBN Overvalued

RBBN Relative Valuation

RBBN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RBBN is overvalued; if below, it's undervalued.

Historical Valuation

Ribbon Communications Inc (RBBN) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.59 is considered Undervalued compared with the five-year average of 95.00. The fair price of Ribbon Communications Inc (RBBN) is between 3.27 to 5.39 according to relative valuation methord. Compared to the current price of 3.00 USD , Ribbon Communications Inc is Undervalued By 8.18%.

Relative Value

Fair Zone

3.27-5.39

Current Price：3.00

8.18%

Undervalued

12.04

6.61

EV/EBITDA

Ribbon Communications Inc. (RBBN) has a current EV/EBITDA of 6.61. The 5-year average EV/EBITDA is 8.07. The thresholds are as follows: Strongly Undervalued below 2.50, Undervalued between 2.50 and 5.29, Fairly Valued between 10.86 and 5.29, Overvalued between 10.86 and 13.64, and Strongly Overvalued above 13.64. The current Forward EV/EBITDA of 6.61 falls within the Historic Trend Line -Fairly Valued range.

7.62

EV/EBIT

Ribbon Communications Inc. (RBBN) has a current EV/EBIT of 7.62. The 5-year average EV/EBIT is 9.65. The thresholds are as follows: Strongly Undervalued below 3.94, Undervalued between 3.94 and 6.79, Fairly Valued between 12.50 and 6.79, Overvalued between 12.50 and 15.36, and Strongly Overvalued above 15.36. The current Forward EV/EBIT of 7.62 falls within the Historic Trend Line -Fairly Valued range.

0.59

Ribbon Communications Inc. (RBBN) has a current PS of 0.59. The 5-year average PS is 0.75. The thresholds are as follows: Strongly Undervalued below 0.23, Undervalued between 0.23 and 0.49, Fairly Valued between 1.01 and 0.49, Overvalued between 1.01 and 1.27, and Strongly Overvalued above 1.27. The current Forward PS of 0.59 falls within the Historic Trend Line -Fairly Valued range.

9.42

P/OCF

Ribbon Communications Inc. (RBBN) has a current P/OCF of 9.42. The 5-year average P/OCF is 5.08. The thresholds are as follows: Strongly Undervalued below -8.76, Undervalued between -8.76 and -1.84, Fairly Valued between 12.00 and -1.84, Overvalued between 12.00 and 18.92, and Strongly Overvalued above 18.92. The current Forward P/OCF of 9.42 falls within the Historic Trend Line -Fairly Valued range.

14.17

P/FCF

Ribbon Communications Inc. (RBBN) has a current P/FCF of 14.17. The 5-year average P/FCF is 177.62. The thresholds are as follows: Strongly Undervalued below -981.10, Undervalued between -981.10 and -401.74, Fairly Valued between 756.98 and -401.74, Overvalued between 756.98 and 1336.34, and Strongly Overvalued above 1336.34. The current Forward P/FCF of 14.17 falls within the Historic Trend Line -Fairly Valued range.

Ribbon Communications Inc (RBBN) has a current Price-to-Book (P/B) ratio of 1.47. Compared to its 3-year average P/B ratio of 1.37 , the current P/B ratio is approximately 7.02% higher. Relative to its 5-year average P/B ratio of 1.35, the current P/B ratio is about 8.33% higher. Ribbon Communications Inc (RBBN) has a Forward Free Cash Flow (FCF) yield of approximately 9.99%. Compared to its 3-year average FCF yield of -0.03%, the current FCF yield is approximately -34218.55% lower. Relative to its 5-year average FCF yield of 0.47% , the current FCF yield is about 2018.02% lower.

1.47

P/B

Median3y

1.37

Median5y

1.35

9.99

FCF Yield

Median3y

-0.03

Median5y

0.47

Competitors Valuation Multiple

The average P/S ratio for RBBN's competitors is 1.08, providing a benchmark for relative valuation. Ribbon Communications Inc Corp (RBBN) exhibits a P/S ratio of 0.59, which is -45.63% above the industry average. Given its robust revenue growth of 2.44%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of RBBN decreased by 28.37% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 210.24M to 215.37M.

The secondary factor is the Margin Expansion, contributed -11.91%to the performance.

Overall, the performance of RBBN in the past 1 year is driven by Revenue Growth. Which is more sustainable.

2.44%

210.24M → 215.37M

Revenue Growth

-11.91%

-6.38 → -5.62

Margin Expansion

-18.90%

-15.08 → -12.23

P/E Change

-28.37%

4.16 → 2.98

Mkt Cap Growth

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Frequently Asked Questions

Is Ribbon Communications Inc (RBBN) currently overvalued or undervalued?

What is Ribbon Communications Inc (RBBN) fair value?

RBBN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Ribbon Communications Inc (RBBN) is between 3.27 to 5.39 according to relative valuation methord.

How does RBBN's valuation metrics compare to the industry average?

What is the current P/B ratio for Ribbon Communications Inc (RBBN) as of Dec 15 2025?

As of Dec 15 2025, Ribbon Communications Inc (RBBN) has a P/B ratio of 1.47. This indicates that the market values RBBN at 1.47 times its book value.

What is the current FCF Yield for Ribbon Communications Inc (RBBN) as of Dec 15 2025?

As of Dec 15 2025, Ribbon Communications Inc (RBBN) has a FCF Yield of 9.99%. This means that for every dollar of Ribbon Communications Inc’s market capitalization, the company generates 9.99 cents in free cash flow.

What is the current Forward P/E ratio for Ribbon Communications Inc (RBBN) as of Dec 15 2025?

As of Dec 15 2025, Ribbon Communications Inc (RBBN) has a Forward P/E ratio of 12.04. This means the market is willing to pay $12.04 for every dollar of Ribbon Communications Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Ribbon Communications Inc (RBBN) as of Dec 15 2025?

As of Dec 15 2025, Ribbon Communications Inc (RBBN) has a Forward P/S ratio of 0.59. This means the market is valuing RBBN at $0.59 for every dollar of expected revenue over the next 12 months.

RBBN Valuation