RingCentral, Inc. (RNG) Financial Ratios
15 years of historical data (2011–2025) · Technology · Software - Application
EV/EBITDA
↓
11.32
↓-79% vs avg
5yr avg: 53.62
30Y Low9.9·High20.2
P/FCF
↓
5.24
↓-62% vs avg
5yr avg: 13.94
30Y Low4.3·High113.0
P/B Ratio
N/A
—
5yr avg: 50.70
30Y Low10.3·High107.6
ROE
N/A
—
5yr avg: -115.6%
30Y Low-145%·High-10%
Debt/EBITDA
↓
3.79
↓-80% vs avg
5yr avg: 18.69
30Y Low3.8·High45.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
RNG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
RingCentral, Inc. trades at 73.0x earnings, 21% above its 5-year average of 60.2x, sitting at the 100th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a premium of 152%. On a free-cash-flow basis, the stock trades at 5.2x P/FCF, 62% below the 5-year average of 13.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.1B | $2.5B | $3.2B | $3.2B | $3.4B | $17.2B | $33.6B | $14.0B | $6.6B | $3.7B | $1.5B |
| Enterprise Value | $4.4B | $3.9B | $4.6B | $4.6B | $4.8B | $18.4B | $34.4B | $14.1B | $6.4B | $3.5B | $1.4B |
| P/E Ratio → | 72.96 | 60.17 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 1.22 | 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 | 5.24 | 4.33 | 8.06 | 9.95 | 33.42 | — | — | — | 433.58 | 259.12 | 112.97 |
| P/OCF | 4.99 | 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
RNG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
RingCentral, Inc.'s enterprise value stands at 11.3x EBITDA, 79% below its 5-year average of 53.6x. The Technology sector median is 16.7x, placing the stock at a 32% discount on an enterprise-value basis.
| 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 | 11.32 | 9.94 | 20.25 | 130.67 | — | — | — | — | 929.38 | — | — |
| EV / EBIT | 35.07 | 33.38 | 326.48 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 6.62 | 11.40 | 14.17 | 47.36 | — | — | — | 420.36 | 246.41 | 102.05 |
RNG Profitability
Margins and return-on-capital ratios measuring operating efficiency
RingCentral, Inc. earns an operating margin of 5.0%. Operating margins have expanded from -9.0% to 5.0% over the past 3 years, signaling improving operational efficiency. ROIC of 12.2% represents solid 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 | 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% |
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 | — | — | — | — | — | -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% |
RNG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
RingCentral, Inc. carries a Debt/EBITDA ratio of 3.8x, which is moderately leveraged (29% above the sector average of 2.9x). Net debt stands at $1.3B ($1.5B total debt minus $133M cash). Interest coverage of just 1.9x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| 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 |
RNG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.49x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 1.34x to 0.49x 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 | 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 |
RNG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
RingCentral, Inc. returns 10.9% to shareholders annually primarily through share buybacks. The earnings yield of 1.4% (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 | 1.4% | 1.7% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 19.1% | 23.1% | 12.4% | 10.1% | 3.0% | — | — | — | 0.2% | 0.4% | 0.9% |
| Buyback Yield | 10.9% | 13.2% | 10.0% | 9.7% | 3.0% | 0.0% | 0.0% | 0.1% | 0.2% | 0.1% | 0.0% |
| Total Shareholder Yield | 10.9% | 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 |
Peer Comparison
Compare RNG 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 |
|---|---|---|---|---|---|---|---|---|---|
 RNGYou | $3B | 73.0 | 11.3 | 5.2 | 71.2% | 5.0% | — | 12.2% | 3.8 |
 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 |
 LUMN | $8B | -4.7 | 9.8 | 22.8 | 46.5% | -1.5% | — | -0.8% | 6.9 |
 FIVN | $1B | 42.2 | 15.3 | 7.4 | 54.7% | 2.8% | 5.6% | 1.7% | 6.2 |
 NICE | $5B | 8.8 | 5.8 | 7.3 | 66.4% | 21.9% | 16.4% | 13.2% | 0.2 |
 TWLO | $28B | 886.5 | 73.0 | 27.3 | 48.0% | 3.4% | 0.4% | 1.6% | 2.8 |
 TELO | $49M | -4.3 | — | — | — | — | -317.6% | — | — |
 OOMA | $470M | 74.3 | 27.9 | — | 61.1% | 1.6% | 7.2% | 2.8% | 3.7 |
 CRM | $124B | 19.5 | 10.7 | 8.6 | 77.7% | 21.5% | 12.4% | 10.1% | 1.4 |
 CSCO | $471B | 46.9 | 33.6 | 35.5 | 64.9% | 20.8% | 22.1% | 13.0% | 1.9 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 15 years · Updated daily
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RNG — Frequently Asked Questions
Quick answers to the most common questions about buying RNG stock.
What is RingCentral, Inc.'s P/E ratio?
RingCentral, Inc.'s current P/E ratio is 73.0x. The historical average is 60.2x. This places it at the 100th percentile of its historical range.
What is RingCentral, Inc.'s EV/EBITDA?
RingCentral, Inc.'s current EV/EBITDA is 11.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.1x.
Is RNG stock overvalued?
Based on historical data, RingCentral, Inc. is trading at a P/E of 73.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are RingCentral, Inc.'s profit margins?
RingCentral, Inc. has 71.2% gross margin and 5.0% operating margin.
How much debt does RingCentral, Inc. have?
RingCentral, Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.