Ribbon Communications Inc. (RBBN) Financial Ratios
27 years of historical data (1999–2025) · Communication Services · Telecommunications Services
EV/EBITDA
↓
9.29
↓-39% vs avg
5yr avg: 15.20
30Y Low10.1·High51.8
P/FCF
↓
17.25
↓-87% vs avg
5yr avg: 136.71
30Y Low7.6·High74.5
P/B Ratio
↓
1.03
↓-22% vs avg
5yr avg: 1.31
30Y Low0.7·High16.1
ROE
↑
9.3%
↓+171% vs avg
5yr avg: -13.0%
30Y Low-114%·High29%
Debt/EBITDA
↓
4.97
↓-28% vs avg
5yr avg: 6.93
30Y Low0.4·High13.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
RBBN Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Ribbon Communications Inc. trades at 11.6x earnings, 11% below its 5-year average of 13.1x, sitting at the 20th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.3x, the stock trades at a discount of 24%. On a free-cash-flow basis, the stock trades at 17.3x P/FCF, 87% below the 5-year average of 136.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $450M | $518M | $724M | $494M | $437M | $893M | $949M | $340M | $501M | $455M | $311M |
| Enterprise Value | $758M | $827M | $1.0B | $755M | $758M | $1.2B | $1.3B | $397M | $536M | $440M | $279M |
| P/E Ratio → | 11.64 | 13.09 | — | — | — | — | 10.75 | — | — | — | — |
| P/S Ratio | 0.53 | 0.61 | 0.87 | 0.60 | 0.53 | 1.06 | 1.12 | 0.60 | 0.87 | 1.38 | 1.23 |
| P/B Ratio | 1.03 | 1.15 | 1.79 | 1.09 | 0.84 | 1.69 | 1.38 | 0.70 | 0.85 | 0.74 | 1.42 |
| P/FCF | 17.25 | 19.88 | 26.45 | 64.97 | — | 435.53 | — | 7.58 | — | 15.63 | — |
| P/OCF | 8.75 | 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
RBBN EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Ribbon Communications Inc.'s enterprise value stands at 9.3x EBITDA, 39% below its 5-year average of 15.2x. This is roughly in line with the Communication Services sector median of 9.6x.
| 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 | 9.29 | 10.13 | 12.55 | 11.20 | 26.92 | — | 16.23 | — | — | — | 150.03 |
| EV / EBIT | 36.68 | — | 37.73 | — | — | — | 11.32 | — | — | — | — |
| EV / FCF | — | 31.72 | 37.26 | 99.21 | — | 600.87 | — | 8.85 | — | 15.13 | — |
RBBN Profitability
Margins and return-on-capital ratios measuring operating efficiency
Ribbon Communications Inc. earns an operating margin of 2.4%, roughly in line with the Communication Services sector average. Operating margins have expanded from -0.4% to 2.4% over the past 3 years, signaling improving operational efficiency. ROE of 9.3% is modest. ROIC of 2.1% represents below-average returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
RBBN Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Ribbon Communications Inc. carries a Debt/EBITDA ratio of 5.0x, which is highly leveraged (38% above the sector average of 3.6x). Net debt stands at $309M ($405M total debt minus $96M cash).
| 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 |
RBBN Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.44x means Ribbon Communications Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.23x to 1.44x over the past 3 years.
| 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 | — | — | — | — | — | — | — | — | — | — | — |
RBBN Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Ribbon Communications Inc. returns 2.0% to shareholders annually primarily through share buybacks. The earnings yield of 8.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.6% | 7.6% | — | — | — | — | 9.3% | — | — | — | — |
| FCF Yield | 5.8% | 5.0% | 3.8% | 1.5% | — | 0.2% | — | 13.2% | — | 6.4% | — |
| Buyback Yield | 2.0% | 1.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.3% | 6.0% | 1.7% | 3.1% |
| Total Shareholder Yield | 2.0% | 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 |
Peer Comparison
Compare RBBN with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RBBNYou | $450M | 11.6 | 9.3 | 17.3 | 47.0% | 2.4% | 9.3% | 2.1% | 5.0 |
 EGHT | $260M | 184.0 | 28.4 | 5.0 | 64.6% | 2.6% | 1.2% | 3.3% | 19.6 |
 BAND | $2B | -119.5 | 52.4 | 0.0 | 35.8% | -1.9% | -3.6% | -1.2% | 16.4 |
 NTGR | $630M | -20.2 | — | — | 36.2% | -5.1% | -6.3% | -8.4% | — |
 VIAV | $11B | 314.5 | 83.7 | 176.0 | 56.8% | 6.5% | 4.8% | 5.5% | 5.2 |
 CSCO | $471B | 46.9 | 33.6 | 35.5 | 64.9% | 20.8% | 22.1% | 13.0% | 1.9 |
 CIEN | $61B | 503.8 | 135.5 | 91.1 | 42.0% | 6.5% | 4.4% | 6.9% | 3.5 |
 ADTN | $1B | -26.6 | 17.9 | 12.5 | 38.3% | -1.4% | -8.5% | -1.7% | 3.2 |
 CALX | $2B | 146.0 | 60.3 | 21.2 | 56.8% | 2.1% | 2.2% | 2.1% | 0.7 |
 T | $154B | 7.2 | 6.9 | 7.9 | 79.8% | 19.2% | 17.6% | 6.7% | 3.9 |
 VZ | $191B | 11.2 | 7.8 | 9.5 | 45.6% | 21.2% | 16.6% | 8.0% | 4.2 |
| Communication Services Median | — | 15.3 | 9.6 | 11.4 | 48.5% | 1.6% | 2.0% | 2.6% | 3.6 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 27 years · Updated daily
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RBBN — Frequently Asked Questions
Quick answers to the most common questions about buying RBBN stock.
What is Ribbon Communications Inc.'s P/E ratio?
Ribbon Communications Inc.'s current P/E ratio is 11.6x. The historical average is 56.7x. This places it at the 20th percentile of its historical range.
What is Ribbon Communications Inc.'s EV/EBITDA?
Ribbon Communications Inc.'s current EV/EBITDA is 9.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 24.9x.
What is Ribbon Communications Inc.'s ROE?
Ribbon Communications Inc.'s return on equity (ROE) is 9.3%. The historical average is -15.6%.
Is RBBN stock overvalued?
Based on historical data, Ribbon Communications Inc. is trading at a P/E of 11.6x. This is at the 20th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Ribbon Communications Inc.'s profit margins?
Ribbon Communications Inc. has 47.0% gross margin and 2.4% operating margin.
How much debt does Ribbon Communications Inc. have?
Ribbon Communications Inc.'s Debt/EBITDA ratio is 5.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.