RingCentral, Inc. (RNG)
Technology · NYQ · US
Fundamentals
Valuation and ratings
RingCentral, Inc. trades at USD41.77, which is 61% above the USD16.28 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 41 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 43.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About RingCentral, Inc.
RingCentral, Inc., an agentic voice AIpowered cloud business communication services provider, delivering an integrated platform for business phone, SMS, contact center, workforce engagement management, video collaboration, and messaging. The company's products include RingEX, a AI-powered unified communications as a service platform for collaboration across voice, messaging, and video; RingCentral Contact Center, a contact center solution that delivers AI-powered omni-channel and workforce engagement solutions; RingCentral Customer Engagement Bundle, a comprehensive solution that includes phone, messaging, and SMS for businesses; and RingCX, a contact center as a service solution for AI-powered customer engagement with CRM integrations. It also offers artificial intelligence (AI) solutions, such as AI Receptionist, a voice AI agent that automates and handles inbound communication; AI Virtual Assistant, which provides real time call and meeting summaries, capturing key points, open questions and action items; AI-based Quality Management, an automated conversation evaluation platform to identify compliance risks, coaching opportunities, and performance insights; AI Agent Assist, a real-time AI guidance for agents; AI Supervisor Assist, a real-time AI insights and recommendations for supervisors; and RingCentral Events, a virtual and hybrid events platform for multi-session conferences, branded experiences, registration, and attendee networking with AI-powered engagement tools. It serves a range of industries, including healthcare, financial and professional services, retail, state and local government, education, legal services, real estate, technology, insurance, construction and hospitality, and others. The company sells its products to enterprise customers, and small and medium-sized businesses through resellers and distributors, partners, and global service providers. RingCentral, Inc. was incorporated in 1999 and is headquartered in Belmont, California.
RNG passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$74.92M · 0.0% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$45.10M · 0.1% of book
- Ken Griffin, CITADEL ADVISORS LLC$23.06M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$15.87M · 0.0% of book
- Philippe Laffont, COATUE MANAGEMENT LLC$15.30M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is RingCentral, Inc. (RNG) undervalued?
Against our discounted cash flow estimate of USD16.28, RNG at USD41.77 is 61% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own RNG?
5 of the institutions we track reported a position in RNG in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is RNG's P/E ratio?
RNG trades at 43.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for RNG, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.