RNG Valuation

RingCentral Inc

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30.510

-0.2(-0.651%)1D

Overview
Forecast
Valuation
Earnings

RNG Relative Valuation

RNG'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, RNG is overvalued; if below, it's undervalued.

Historical Valuation

RingCentral Inc (RNG) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.08 is considered Undervalued compared with the five-year average of 72.54. The fair price of RingCentral Inc (RNG) is between 39.32 to 47.18 according to relative valuation methord. Compared to the current price of 31.19 USD , RingCentral Inc is Undervalued By 20.68%.

Relative Value

Fair Zone

39.32-47.18

Current Price：31.19

20.68%

Undervalued

6.82

Trailing

Forward

6.03

EV/EBITDA

RingCentral Inc. (RNG) has a current EV/EBITDA of 6.03. The 5-year average EV/EBITDA is 44.04. The thresholds are as follows: Strongly Undervalued below -63.68, Undervalued between -63.68 and -9.82, Fairly Valued between 97.90 and -9.82, Overvalued between 97.90 and 151.76, and Strongly Overvalued above 151.76. The current Forward EV/EBITDA of 6.03 falls within the Historic Trend Line -Fairly Valued range.

6.94

EV/EBIT

RingCentral Inc. (RNG) has a current EV/EBIT of 6.94. The 5-year average EV/EBIT is 57.63. The thresholds are as follows: Strongly Undervalued below -89.25, Undervalued between -89.25 and -15.81, Fairly Valued between 131.06 and -15.81, Overvalued between 131.06 and 204.50, and Strongly Overvalued above 204.50. The current Forward EV/EBIT of 6.94 falls within the Historic Trend Line -Fairly Valued range.

1.08

RingCentral Inc. (RNG) has a current PS of 1.08. The 5-year average PS is 5.82. The thresholds are as follows: Strongly Undervalued below -8.19, Undervalued between -8.19 and -1.19, Fairly Valued between 12.83 and -1.19, Overvalued between 12.83 and 19.83, and Strongly Overvalued above 19.83. The current Forward PS of 1.08 falls within the Historic Trend Line -Fairly Valued range.

4.62

P/OCF

RingCentral Inc. (RNG) has a current P/OCF of 4.62. The 5-year average P/OCF is 51.69. The thresholds are as follows: Strongly Undervalued below -87.29, Undervalued between -87.29 and -17.80, Fairly Valued between 121.19 and -17.80, Overvalued between 121.19 and 190.68, and Strongly Overvalued above 190.68. The current Forward P/OCF of 4.62 falls within the Historic Trend Line -Fairly Valued range.

5.28

P/FCF

RingCentral Inc. (RNG) has a current P/FCF of 5.28. The 5-year average P/FCF is 100.00. The thresholds are as follows: Strongly Undervalued below -192.25, Undervalued between -192.25 and -46.12, Fairly Valued between 246.13 and -46.12, Overvalued between 246.13 and 392.26, and Strongly Overvalued above 392.26. The current Forward P/FCF of 5.28 falls within the Historic Trend Line -Fairly Valued range.

RingCentral Inc (RNG) has a current Price-to-Book (P/B) ratio of -5.74. Compared to its 3-year average P/B ratio of -9.59 , the current P/B ratio is approximately -40.17% higher. Relative to its 5-year average P/B ratio of 52.56, the current P/B ratio is about -110.92% higher. RingCentral Inc (RNG) has a Forward Free Cash Flow (FCF) yield of approximately 19.73%. Compared to its 3-year average FCF yield of 11.58%, the current FCF yield is approximately 70.46% lower. Relative to its 5-year average FCF yield of 7.15% , the current FCF yield is about 175.85% lower.

-5.70

P/B

Median3y

-9.59

Median5y

52.56

19.74

FCF Yield

Median3y

11.58

Median5y

7.15

Competitors Valuation Multiple

The average P/S ratio for RNG's competitors is 2.72, providing a benchmark for relative valuation. RingCentral Inc Corp (RNG) exhibits a P/S ratio of 1.08, which is -60.42% above the industry average. Given its robust revenue growth of 4.64%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

DigitalOcean Holdings Inc

DoubleVerify Holdings Inc

Alarm.com Holdings Inc

Alkami Technology Inc

5.36

36.39%

2.66B

Performance Decomposition

Market capitalization of RNG decreased by 7.86% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -83.58 to -228.20.

The secondary factor is the Revenue Growth, contributed 4.64%to the performance.

Overall, the performance of RNG in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.64%

592.91M → 620.40M

Revenue Growth

-185.54%

-2.49 → 2.13

Margin Expansion

173.04%

-83.58 → -228.20

P/E Change

-7.86%