RingCentral (RNG): Assessing Valuation After a 22% One-Year Share Price Decline
Recent performance and why the stock is on radar
RingCentral (RNG) has quietly slipped about 7% over the past month and roughly 22% over the past year, even as revenue and net income continue to grow. This mix tends to interest patient investors.
See our latest analysis for RingCentral.
The 1 year total shareholder return of negative 22.1% and a 30 day share price return of negative 7.1% suggest momentum has been fading, as investors weigh steady revenue growth against execution risks and profitability questions at around $27.59 per share.
If RingCentral has you rethinking where growth and innovation might show up next, it could be worth exploring high growth tech and AI stocks as a way to uncover other potential opportunities in the space.
With shares down sharply over five years despite improving revenue and a swing to modest profitability, is RingCentral now trading at a meaningful discount to its potential, or is the market correctly pricing in only modest future growth?
Most Popular Narrative Narrative: 17% Undervalued
Compared with the last close at $27.59, the most followed narrative points to a higher fair value. This frames RingCentral as moderately mispriced today.
The analysts have a consensus price target of $33.235 for RingCentral based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $55.0, and the most bearish reporting a price target of just $27.0.
Want to see how steady revenue gains, rising margins and ambitious earnings forecasts combine into that valuation call? The full narrative reveals the math behind those expectations.
Result: Fair Value of $33.24 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sustaining that upside case depends on RingCentral navigating bundled suite competition and the risk that costly AI bets fail to scale meaningfully.
Find out about the key risks to this RingCentral narrative.
Build Your Own RingCentral Narrative
If you see the story differently or simply want to dig into the numbers yourself, you can build a custom view in minutes: Do it your way.
A great starting point for your RingCentral research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
Looking for more investment ideas?
Before you move on, put Simply Wall St to work for you by hunting down fresh opportunities that could leave slower investors stuck on the sidelines.
- Capture potential mispricings early by scanning these 875 undervalued stocks based on cash flows that the market may not be fully appreciating yet.
- Explore the AI space by targeting these 25 AI penny stocks that are focused on advances in automation and data intelligence.
- Strengthen your income stream by reviewing these 14 dividend stocks with yields > 3% that can help support returns even when markets turn volatile.
This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com