Latest Ratios: P/E Ratio 165.1x · EV/EBITDA 20.9x · 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 | $6.8B | $2.5B | $3.2B | $3.2B | $3.4B | $17.2B | $33.6B | $14.0B | $6.6B | $3.7B | $1.5B |
| Enterprise Value | $8.2B | $3.9B | $4.6B | $4.6B | $4.8B | $18.4B | $34.4B | $14.1B | $6.4B | $3.5B | $1.4B |
| P/E Ratio → | 165.06 | 60.17 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.72 | 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 | 11.63 | 4.33 | 8.06 | 9.95 | 33.42 | — | — | — | 433.58 | 259.12 | 112.97 |
| P/OCF | 11.06 | 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 | 20.92 | 9.94 | 20.25 | 130.67 | — | — | — | — | 929.38 | — | — |
| EV / EBIT | 64.81 | 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 | 779.34 | 779.34 | 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 | 0.6% | 1.7% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 8.6% | 23.1% | 12.4% | 10.1% | 3.0% | — | — | — | 0.2% | 0.4% | 0.9% |
| Buyback Yield | 4.9% | 13.2% | 10.0% | 9.7% | 3.0% | 0.0% | 0.0% | 0.1% | 0.2% | 0.1% | 0.0% |
| Total Shareholder Yield | 4.9% | 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 |
Includes 30+ ratios · 15 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
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 165.1x. The historical average is 60.2x. This places it at the 100th percentile of its historical range.
RingCentral, Inc.'s current EV/EBITDA is 20.9x. 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 165.1x. 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.
Key Metrics
Top Statement Risk
Partner cost and dilution
Metrics are mathematically derived from official filings.
Thin Operating Leverage Persists
Despite a stable 71.9% gross margin, RingCentral's operating margin of 7.7% in 2026Q2 remains thin, reflecting heavy partner and sales costs, as per the latest quarterly report.
The spread between gross and operating margins has narrowed only modestly over the past ten quarters, from 70.2% to 71.9% gross and from -1.9% to 7.7% operating. This suggests that while the company has achieved some operating leverage, the cost structure remains heavily weighted toward sales and marketing, likely due to partner commissions. The net margin of 6.0% in 2026Q2 is a recent positive, but it is still far below the levels typical of mature SaaS peers, indicating that profitability is sensitive to even minor cost increases.
ROIC Recovery from Negative Territory
RingCentral's ROIC has climbed from -0.9% in 2024Q1 to 5.6% in 2026Q2, indicating a turnaround in capital efficiency, as reported in financial statements.
The improvement in ROIC is driven primarily by margin expansion rather than asset turnover, which has remained relatively flat around 0.4x. This suggests that the company is generating more operating income per dollar of invested capital, but the absolute level of ROIC is still modest, implying that the business is not yet compounding returns at a rate that would justify a premium valuation. The negative equity base complicates ROE analysis, but the positive ROIC trend is a constructive sign for capital allocation.
Working Capital Efficiency Improves
RingCentral's cash conversion cycle shortened from 38 days in 2024Q1 to 39 days in 2025Q4, with DSO improving to 52 days in 2026Q2, based on reported figures.
The stable DSO around 52-59 days indicates consistent collection practices, while DPO has increased from 15 to 13 days, suggesting the company is paying suppliers slightly faster. The overall CCC has remained in the 25-45 day range, reflecting a typical SaaS model with minimal inventory. The efficiency gains are modest, but they contribute to the strong free cash flow margin of 27.4% in 2026Q2, which is a key positive for the business.
Debt Service Comfort Improving
Interest coverage has risen from -0.55x in 2024Q1 to 3.26x in 2026Q2, while D/EBITDA has fallen from 34.63x to 13.59x, as per the latest quarterly data.
The improvement in interest coverage indicates that operating income is now sufficient to cover interest expenses, a significant turnaround from the negative coverage two years ago. However, the D/EBITDA ratio remains elevated, suggesting that the company still carries a substantial debt load relative to its earnings. The trend is positive, but the absolute level of leverage warrants monitoring, especially if growth continues to decelerate.
Liquidity Buffer Thin but Stable
RingCentral's current ratio improved to 1.11 in 2026Q2 from 0.63 in 2025Q4, but cash reserves of $111.5M remain modest, as reported in the balance sheet.
The current ratio has fluctuated between 0.63 and 1.16 over the past ten quarters, indicating that the company's ability to cover short-term obligations is not robust. The improvement in 2026Q2 is partly due to a reduction in current liabilities, but the absolute cash position is thin relative to the company's debt load. Under a severe stress scenario, the company may need to rely on its strong free cash flow generation to meet obligations, which appears adequate but not comfortable.
Misapplied EV/EBITDA Multiple
The EV/EBITDA multiple of 15.71x may mislead investors because EBITDA excludes stock-based compensation and partner payments, which are significant for RingCentral, as per the latest financials.
For RingCentral, EBITDA is a poor proxy for cash earnings because it adds back stock-based compensation, which totaled $57.1M in 2026Q2, exceeding net income. Additionally, capitalized partner payments may inflate EBITDA, masking the true cost of customer acquisition. A more appropriate metric is EV/Unlevered Free Cash Flow, which adjusts for these items and better reflects the company's economic earnings power. Investors should focus on cash-based multiples rather than EBITDA to avoid overstating the company's value.