Latest Ratios: P/E Ratio 81.8x · EV/EBITDA 12.3x · ROE N/A. (2011–2025 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 | $3.4B | $2.5B | $3.2B | $3.2B | $3.4B | $17.2B | $33.6B | $14.0B | $6.6B | $3.7B | $1.5B |
| Enterprise Value | $4.8B | $3.9B | $4.6B | $4.6B | $4.8B | $18.4B | $34.4B | $14.1B | $6.4B | $3.5B | $1.4B |
| P/E Ratio → | 81.75 | 60.17 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 1.37 | 1.01 | 1.34 | 1.46 | 1.70 | 10.78 | 28.39 | 15.53 | 9.73 | 7.36 | 3.96 |
| P/B Ratio | — | — | — | — | — | 50.70 | 107.63 | 18.80 | 20.64 | 21.44 | 11.56 |
| P/FCF | 5.87 | 4.33 | 8.06 | 9.95 | 33.42 | — | — | — | 433.58 | 259.12 | 112.97 |
| P/OCF | 5.59 | 4.11 | 6.67 | 8.06 | 17.62 | 112.96 | — | 216.23 | 90.86 | 89.69 | 50.62 |
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 | — | 1.55 | 1.90 | 2.08 | 2.40 | 11.52 | 29.09 | 15.63 | 9.43 | 7.00 | 3.58 |
| EV / EBITDA | 12.27 | 9.94 | 20.25 | 130.67 | — | — | — | — | 929.38 | — | — |
| EV / EBIT | 38.01 | 33.38 | 326.48 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 6.62 | 11.40 | 14.17 | 47.36 | — | — | — | 420.36 | 246.41 | 102.05 |
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 | 71.2% | 71.2% | 70.6% | 69.8% | 67.7% | 71.9% | 72.7% | 74.4% | 76.7% | 75.8% | 75.7% |
| Operating Margin | 5.0% | 5.0% | 0.1% | -9.0% | -32.7% | -18.9% | -9.6% | -5.1% | -2.4% | -5.4% | -6.8% |
| Net Profit Margin | 1.7% | 1.7% | -2.4% | -7.5% | -44.2% | -23.6% | -7.0% | -5.9% | -3.9% | -5.2% | -7.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | -115.6% | -15.7% | -10.1% | -10.7% | -17.3% | -24.4% |
| ROA | 2.7% | 2.7% | -3.1% | -8.2% | -37.8% | -15.8% | -4.6% | -4.6% | -4.4% | -9.4% | -12.5% |
| ROIC | 12.2% | 12.2% | 0.2% | -16.7% | -39.9% | -17.1% | -8.6% | -7.2% | -22.7% | — | — |
| ROCE | 19.5% | 19.5% | 0.2% | -14.5% | -37.4% | -15.9% | -7.8% | -4.9% | -3.8% | -17.3% | -19.2% |
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 | — | — | — | — | — | 4.27 | 4.68 | 0.58 | 1.15 | — | 0.12 |
| Debt / EBITDA | 3.79 | 3.79 | 7.01 | 45.27 | — | — | — | — | 53.61 | — | — |
| Net Debt / Equity | — | — | — | — | — | 3.49 | 2.63 | 0.12 | -0.63 | -1.05 | -1.12 |
| Net Debt / EBITDA | 3.45 | 3.45 | 5.93 | 38.95 | — | — | — | — | -29.22 | — | — |
| Debt / FCF | — | 2.30 | 3.34 | 4.22 | 13.94 | — | — | — | -13.22 | -12.72 | -10.92 |
| Interest Coverage | 1.93 | 1.93 | 0.21 | -3.36 | -180.83 | -4.80 | -0.67 | -1.78 | -0.62 | -38.86 | -37.97 |
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 | 0.49 | 0.49 | 1.16 | 1.34 | 1.22 | 1.24 | 2.11 | 1.91 | 3.55 | 1.96 | 1.78 |
| Quick Ratio | 0.49 | 0.49 | 1.16 | 1.34 | 1.22 | 1.23 | 2.11 | 1.91 | 3.55 | 1.96 | 1.77 |
| Cash Ratio | 0.11 | 0.11 | 0.32 | 0.35 | 0.41 | 0.51 | 1.46 | 1.22 | 2.84 | 1.43 | 1.38 |
| Asset Turnover | — | 1.70 | 1.35 | 1.13 | 0.96 | 0.62 | 0.54 | 0.62 | 0.75 | 1.64 | 1.50 |
| Inventory Turnover | — | — | 567.58 | 445.24 | 530.79 | 79.29 | 587.31 | 576.17 | 789.59 | 612.48 | 1463.67 |
| Days Sales Outstanding | — | 55.74 | 58.73 | 60.40 | 57.15 | 53.29 | 54.28 | 52.55 | 51.14 | 33.98 | 29.07 |
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 | 1.2% | 1.7% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 17.0% | 23.1% | 12.4% | 10.1% | 3.0% | — | — | — | 0.2% | 0.4% | 0.9% |
| Buyback Yield | 9.7% | 13.2% | 10.0% | 9.7% | 3.0% | 0.0% | 0.0% | 0.1% | 0.2% | 0.1% | 0.0% |
| Total Shareholder Yield | 9.7% | 13.2% | 10.0% | 9.7% | 3.0% | 0.0% | 0.0% | 0.1% | 0.2% | 0.1% | 0.0% |
| Shares Outstanding | — | $88M | $92M | $95M | $95M | $92M | $89M | $83M | $80M | $76M | $73M |
High Customer Acquisition Costs
According to recent market data, RingCentral trades at a forward P/E of 7.58, a valuation multiple that suggests investors are pricing the firm as a mature, low-growth utility rather than a high-growth SaaS entity, despite the historical premium typically afforded to cloud-based communication platforms.
The compression in valuation multiples indicates that the market has largely discounted the company's ability to return to double-digit top-line expansion. Investors should monitor whether this low multiple represents a value opportunity or a permanent re-rating due to the saturation of the North American enterprise market.
Based on reported figures, RingCentral's ROIC has struggled to maintain positive momentum, fluctuating between -3.4% and 5.1% over the last ten quarters, which suggests that the company has yet to achieve a sustainable return on its invested capital base relative to its cost of funding.
The volatility in ROIC highlights the difficulty of generating meaningful returns when a significant portion of capital is tied up in partner-related acquisition costs. This trend warrants further investigation into whether the company's current capital allocation strategy is creating long-term value or merely sustaining existing operations.
As reported in financial statements, RingCentral's asset turnover has remained stagnant at approximately 0.4x, indicating that the company's ability to generate revenue from its asset base is limited and has not improved despite the transition toward a more mature, subscription-heavy business model over the last two years.
The persistent DSO levels around 55-59 days suggest that the company faces structural delays in collecting payments from its enterprise client base. This inefficiency may be exacerbated by the reliance on third-party distribution partners, which adds layers of complexity to the cash conversion cycle.
According to the latest quarterly filings, RingCentral's current ratio has compressed to 0.89, down from 1.34 in 2023Q4, which indicates a narrowing margin of safety in meeting short-term obligations as the company's liquidity position becomes increasingly sensitive to the timing of large enterprise contract renewals.
The decline in the quick ratio suggests that the company has limited flexibility to absorb unexpected operational shocks without relying on external financing. Investors should monitor the company's ability to maintain sufficient cash reserves as it continues to navigate a high-interest-rate environment.
As indicated by the financial data, the P/E ratio is a fundamentally flawed metric for RingCentral, as it obscures the massive impact of non-cash stock-based compensation and capitalized partner acquisition costs that artificially depress reported net income while ignoring the underlying cash-generating capacity of the subscription model.
Analysts should prioritize free cash flow yield or EV/EBITDA over P/E to better capture the company's true economic performance. Relying on P/E risks misinterpreting the company's profitability, as it fails to account for the significant accounting adjustments required to normalize the firm's unique cost structure.
Includes 30+ ratios · 15 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying RNG stock.
RingCentral, Inc.'s current P/E ratio is 81.8x. The historical average is 60.2x. This places it at the 100th percentile of its historical range.
RingCentral, Inc.'s current EV/EBITDA is 12.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.1x.
Based on historical data, RingCentral, Inc. is trading at a P/E of 81.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
RingCentral, Inc. has 71.2% gross margin and 5.0% operating margin.
RingCentral, Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.