RNG
RingCentral, Inc.
$79.27
Platform & Compounding FCF
85%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 7.2% below fair value
You pay
$79.27
Bear
$61.50
Fair
$85.39
Bull
$108.31
Bear
$61.50
-22.4%
5% stage 1 growth, 11% discount
Fair
$85.39
+7.7%
9% stage 1 growth, 11% discount
Bull
$108.31
+36.6%
12% stage 1 growth, 11% discount
Adjust Assumptions
9.1%
11.0%
3.0%
Key Value Driver
FCF growth rate (9% base case)
Terminal Value % of EV
38%
Implied Market Multiple
19.0x
Market is pricing in (growth)
8.3%
vs 9.1% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (42 analysts)
$61.00
Divergence from AlphaVal
40%
Summary
Using a two-stage FCF DCF with 9% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $85.39 per share.
Warnings
Stock-based employee pay equals 621% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $61.00 (from 42 analysts). Our estimate is 40% above the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions