Is RingCentral a Bargain After Share Price Drops 8% and New Cloud Partnerships?

Simply Wall St.

Nov 06

Wondering if RingCentral is a bargain or a value trap? You are not alone. It is the perfect time to dig deeper into what the numbers say about this stock. While RingCentral’s share price recently lost...

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You are not alone. It is the perfect time to dig deeper into what the numbers say about this stock. While RingCentral’s share price recently lost...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nyse-rng/ringcentral/news/is-ringcentral-a-bargain-after-share-price-drops-8-and-new-c\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is RingCentral a Bargain After Share Price Drops 8% and New Cloud Partnerships?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs RingCentral a Bargain After Share Price Drops 8% and New Cloud Partnerships?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-06 11:54 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nyse-rng/ringcentral/news/is-ringcentral-a-bargain-after-share-price-drops-8-and-new-c><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wondering if RingCentral is a bargain or a value trap? You are not alone. It is the perfect time to dig deeper into what the numbers say about this stock. While RingCentral’s share price recently lost...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nyse-rng/ringcentral/news/is-ringcentral-a-bargain-after-share-price-drops-8-and-new-c\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RNG","symbol_name":"Ringcentral Inc.","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nyse-rng/ringcentral/news/is-ringcentral-a-bargain-after-share-price-drops-8-and-new-c","article_id":"2581051106","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8041000-choice1-main-header/1585186668959"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nyse-rng/ringcentral/news/is-ringcentral-a-bargain-after-share-price-drops-8-and-new-c","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2581051106","pubTimestamp":1762401258,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering if RingCentral is a bargain or a value trap? You are not alone. It is the perfect time to dig deeper into what the numbers say about this stock.\nWhile RingCentral’s share price recently lost 8.0% in just the past week and is still down 21.6% since January, these movements return it close to levels seen three years ago. This may indicate shifting sentiment about the company’s growth or risk profile.\nRecent headlines highlight ongoing efforts by RingCentral to expand its product...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"RNG":"Ringcentral Inc.","BK4528":"SaaS概念","BK4585":"ETF&股票定投概念","BK4023":"应用软件","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc"},"translate_title":"在股价下跌8%和新的云合作伙伴关系之后，RingCentral是否便宜？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"RNG":1.5},"content_text":"Wondering if RingCentral is a bargain or a value trap? You are not alone. It is the perfect time to dig deeper into what the numbers say about this stock. While RingCentral’s share price recently lost 8.0% in just the past week and is still down 21.6% since January, these movements return it close to levels seen three years ago. This may indicate shifting sentiment about the company’s growth or risk profile. Recent headlines highlight ongoing efforts by RingCentral to expand its product partnerships and strengthen its position within the communications software industry. News around collaborations with large cloud infrastructure providers and customer wins has contributed to ongoing market debate about the company's long-term strategy and business resilience. For those interested in hard numbers, RingCentral scores a 6 out of 6 on our valuation checks, meaning it is currently undervalued in every metric we assess. Next, we will break down exactly how these valuation approaches work and introduce a more holistic way to look at value that investors often overlook.  Find out why RingCentral's -27.2% return over the last year is lagging behind its peers. AdvertisementApproach 1: RingCentral Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow (DCF) model estimates how much a business is worth today by projecting its future cash flows and then discounting those amounts back to their present value. This approach allows investors to gauge a stock's true intrinsic value based on expected future earnings rather than current or past numbers alone. For RingCentral, the latest trailing twelve months' Free Cash Flow sits at $513.9 Million. Analysts anticipate steady growth, projecting Free Cash Flow to reach $600.95 Million by 2029, with further annual increases extrapolated by Simply Wall St's analysts into the next decade. These estimates reflect both direct analyst forecasts for the coming five years and extended projections that assume a continuation of growth trends. After applying the DCF method to these forecasts, RingCentral’s intrinsic value comes out to $88.78 per share. With the stock currently trading at roughly 69.2 percent below this value, the DCF analysis points to RingCentral being significantly undervalued compared to its cash-generating potential. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests RingCentral is undervalued by 69.2%. Track this in your watchlist or portfolio, or discover 836 more undervalued stocks based on cash flows. RNG Discounted Cash Flow as at Nov 2025 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for RingCentral. Approach 2: RingCentral Price vs Sales For technology and software companies like RingCentral, the Price-to-Sales (P/S) ratio is often a more meaningful valuation tool than earnings-based multiples, especially when profits are volatile or reinvested for future growth. The P/S ratio measures how much investors are willing to pay for every dollar of sales generated. This makes it useful for fast-growing or transformational businesses in the sector. Growth expectations and risk profile both have a strong influence on what is considered a \"normal\" or \"fair\" P/S multiple. High growth and strong market opportunities can justify a higher multiple. Increased risks or slower expansion will generally lead to a lower one. RingCentral’s current P/S ratio sits at 0.99x, which is well below the industry average of 5.11x and also trails its peer group average of 3.81x. At first glance, this suggests the stock may be trading at a discount relative to peers in the software industry. However, Simply Wall St introduces a “Fair Ratio” tailored for RingCentral, calculated to be 3.45x. Unlike basic benchmarks, this proprietary metric weighs important details like growth prospects, market risks, profitability, industry trends, and market capitalization. This results in a more holistic view of what the stock should be worth. When compared directly, RingCentral’s actual P/S multiple of 0.99x is considerably below the Fair Ratio of 3.45x. This suggests the market is currently undervaluing the business based on its fundamental characteristics and outlook. Result: UNDERVALUED NYSE:RNG PS Ratio as at Nov 2025 PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1402 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your RingCentral Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is your personal story about a company: the view you take towards its future, which brings together your assumptions about revenue growth, profit margins, and fair value forecasts with the trends or risks you find most compelling. Narratives help you connect the dots between a company’s current position, your financial expectations, and what you ultimately believe it's worth, all in a single, dynamic summary. Available right on Simply Wall St’s Community page, Narratives are easy to create and widely used by investors to clearly outline why they believe a stock is a great buy, a watch, or a sell. As major news or financial updates emerge, Narratives are automatically updated so you always have the latest context when comparing your estimate of Fair Value to the actual Price. By reviewing different user Narratives, you gain perspective on why some investors see potential upside in RingCentral’s expansion in AI-based communications and partnerships, while others highlight risks from industry competition or dependency on large partners. For RingCentral, some investors forecast as much as $55 per share on optimism around AI-driven growth and enterprise adoption, while the most cautious see just $27 due to competitive and partnership risks. This shows just how powerful a Narrative can be in shaping your investment decision. Do you think there's more to the story for RingCentral? Head over to our Community to see what others are saying! NYSE:RNG Community Fair Values as at Nov 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}