Latest Ratios: P/E Ratio 9.6x · EV/EBITDA 8.3x · ROE 9.3%. (1999–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $372M | $518M | $724M | $494M | $437M | $893M | $949M | $340M | $501M | $455M | $311M |
| Enterprise Value | $681M | $827M | $1.0B | $755M | $758M | $1.2B | $1.3B | $397M | $536M | $440M | $279M |
| P/E Ratio → | 9.64 | 13.09 | — | — | — | — | 10.75 | — | — | — | — |
| P/S Ratio | 0.44 | 0.61 | 0.87 | 0.60 | 0.53 | 1.06 | 1.12 | 0.60 | 0.87 | 1.38 | 1.23 |
| P/B Ratio | 0.85 | 1.15 | 1.79 | 1.09 | 0.84 | 1.69 | 1.38 | 0.70 | 0.85 | 0.74 | 1.42 |
| P/FCF | 14.29 | 19.88 | 26.45 | 64.97 | — | 435.53 | — | 7.58 | — | 15.63 | — |
| P/OCF | 7.24 | 10.08 | 14.41 | 28.92 | — | 46.55 | 9.34 | 6.11 | — | 56.27 | 16.21 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.98 | 1.22 | 0.91 | 0.92 | 1.46 | 1.53 | 0.70 | 0.93 | 1.33 | 1.11 |
| EV / EBITDA | 8.35 | 10.13 | 12.55 | 11.20 | 26.92 | — | 16.23 | — | — | — | 150.03 |
| EV / EBIT | 32.95 | — | 37.73 | — | — | — | 11.32 | — | — | — | — |
| EV / FCF | — | 31.72 | 37.26 | 99.21 | — | 600.87 | — | 8.85 | — | 15.13 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 47.0% | 47.0% | 52.7% | 45.9% | 48.9% | 52.6% | 53.4% | 56.3% | 53.4% | 61.1% | 66.4% |
| Operating Margin | 2.4% | 2.4% | 2.0% | -0.4% | -5.9% | -13.9% | 0.2% | -33.6% | -11.3% | -16.7% | -5.4% |
| Net Profit Margin | 4.7% | 4.7% | -6.5% | -8.0% | -12.0% | -21.0% | 10.5% | -23.1% | -13.3% | -10.7% | -5.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.3% | 9.3% | -12.7% | -13.6% | -18.8% | -29.2% | 15.1% | -24.2% | -12.7% | -8.4% | -6.3% |
| ROA | 3.3% | 3.3% | -4.7% | -5.5% | -7.5% | -12.2% | 7.5% | -14.7% | -8.2% | -5.8% | -4.5% |
| ROIC | 2.1% | 2.1% | 1.8% | -0.3% | -4.3% | -9.3% | 0.2% | -24.4% | -8.0% | -10.5% | -5.7% |
| ROCE | 2.4% | 2.4% | 2.1% | -0.4% | -5.0% | -10.6% | 0.2% | -29.7% | -9.8% | -12.3% | -5.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.90 | 0.90 | 0.95 | 0.63 | 0.75 | 0.84 | 0.69 | 0.21 | 0.13 | 0.07 | — |
| Debt / EBITDA | 4.97 | 4.97 | 4.72 | 4.26 | 13.78 | — | 5.94 | — | — | — | — |
| Net Debt / Equity | — | 0.69 | 0.73 | 0.58 | 0.62 | 0.64 | 0.50 | 0.12 | 0.06 | -0.02 | -0.15 |
| Net Debt / EBITDA | 3.78 | 3.78 | 3.64 | 3.86 | 11.39 | — | 4.33 | — | — | — | -17.15 |
| Debt / FCF | — | 11.85 | 10.81 | 34.24 | — | 165.35 | — | 1.27 | — | -0.50 | — |
| Interest Coverage | -0.02 | -0.02 | 0.79 | -1.00 | -5.50 | -8.43 | 4.92 | -26.45 | -15.37 | -44.33 | -113.16 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.44 | 1.44 | 1.41 | 1.23 | 1.45 | 1.40 | 1.37 | 1.35 | 0.96 | 1.16 | 2.31 |
| Quick Ratio | 1.19 | 1.19 | 1.17 | 1.00 | 1.22 | 1.24 | 1.23 | 1.28 | 0.88 | 1.07 | 2.07 |
| Cash Ratio | 0.31 | 0.31 | 0.27 | 0.08 | 0.20 | 0.30 | 0.39 | 0.22 | 0.18 | 0.31 | 1.22 |
| Asset Turnover | — | 0.70 | 0.72 | 0.72 | 0.65 | 0.63 | 0.55 | 0.69 | 0.60 | 0.36 | 0.82 |
| Inventory Turnover | 5.68 | 5.68 | 4.98 | 5.76 | 5.55 | 7.41 | 8.59 | 16.62 | 11.93 | 6.03 | 4.65 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.4% | 7.6% | — | — | — | — | 9.3% | — | — | — | — |
| FCF Yield | 7.0% | 5.0% | 3.8% | 1.5% | — | 0.2% | — | 13.2% | — | 6.4% | — |
| Buyback Yield | 2.4% | 1.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.3% | 6.0% | 1.7% | 3.1% |
| Total Shareholder Yield | 2.4% | 1.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.3% | 6.0% | 1.7% | 3.1% |
| Shares Outstanding | — | $180M | $174M | $170M | $157M | $148M | $145M | $110M | $104M | $59M | $49M |
Carrier CapEx Cycle Sensitivity
According to current market data, Ribbon trades at a P/S ratio of 0.46, which suggests that investors are heavily discounting the firm's future growth prospects compared to broader sector peers, likely due to the persistent revenue contraction observed in recent quarterly filings and ongoing carrier spending uncertainty.
The forward P/E of 17.19 appears to imply an expectation of earnings recovery that remains unsupported by the company's recent history of GAAP losses. This valuation gap suggests the market is pricing Ribbon as a distressed asset rather than a growth-oriented networking firm, warranting caution for investors expecting a near-term re-rating.
Based on reported figures, Ribbon's ROIC has trended into negative territory, reaching -4.0% in 2026Q1, which indicates that the company is currently failing to generate returns on invested capital that exceed its cost of funding, a trend that has persisted throughout the last ten quarters.
The inability to maintain positive returns on capital suggests that the heavy R&D and M&A-driven strategy has yet to yield the intended operational synergies. Investors should monitor whether management can pivot toward higher-margin software revenue to reverse this decay, as current returns appear insufficient to justify the capital intensity of the IP Optical segment.
As reported in financial statements, the cash conversion cycle has expanded to 122 days in 2026Q1, reflecting significant inefficiencies in managing receivables and inventory compared to the 88-day cycle observed in 2024Q4, which suggests increasing difficulty in converting sales into timely cash inflows from carrier customers.
The rising DSO, which reached 121 days in the most recent quarter, indicates that Ribbon may be offering extended payment terms to secure contracts, effectively financing its customers at the expense of its own liquidity. This trend warrants further investigation into the credit quality of the company's Tier 1 and regional carrier base.
Based on the provided quarterly data, the quick ratio has declined to 1.09 in 2026Q1, indicating that the company's ability to cover short-term liabilities without relying on inventory liquidation is narrowing significantly compared to the more stable liquidity positions maintained throughout the 2024 fiscal year.
The tightening liquidity position leaves little room for error, especially given the company's history of volatile cash flows and reliance on external financing. Any further deterioration in the current ratio could signal an increased risk of covenant pressure, particularly if the anticipated revenue tailwinds from the 'Huawei replacement' cycle continue to be delayed.
The P/E ratio is the most commonly misapplied metric for Ribbon, as it obscures the company's underlying cash burn and the heavy impact of non-cash amortization charges stemming from past acquisitions, which frequently distort GAAP earnings and provide a misleading picture of the firm's true earning power.
Investors should instead focus on EV/EBITDA or free cash flow yields to better assess the company's operational viability, as these metrics strip away the accounting noise that makes the P/E ratio appear deceptively attractive. Relying on P/E in this context risks ignoring the structural challenges inherent in the company's transition from legacy hardware to cloud-native software.
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying RBBN stock.
Ribbon Communications Inc.'s current P/E ratio is 9.6x. The historical average is 56.7x.
Ribbon Communications Inc.'s current EV/EBITDA is 8.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 24.9x.
Ribbon Communications Inc.'s return on equity (ROE) is 9.3%. The historical average is -15.6%.
Based on historical data, Ribbon Communications Inc. is trading at a P/E of 9.6x. Compare with industry peers and growth rates for a complete picture.
Ribbon Communications Inc. has 47.0% gross margin and 2.4% operating margin.
Ribbon Communications Inc.'s Debt/EBITDA ratio is 5.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.