RingCentral, Inc. logo RNG - RingCentral, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 28
HOLD 14
SELL 0
STRONG
SELL
0
| PRICE TARGET: $42.13 DETAILS
HIGH: $55.00
LOW: $32.00
MEDIAN: $40.00
CONSENSUS: $42.13
UPSIDE: 0.86%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Moderate
Trading 31.7% below fair value
Current Price $41.77
Bear Case $44.51 6.6% upside ($44.51 - $41.77) / $41.77 = 6.6% 5% stage 1 growth, 11% discount
Fair Value $61.13 46.4% upside ($61.13 - $41.77) / $41.77 = 46.4% 9% stage 1 growth, 11% discount
Bull Case $76.83 83.9% upside ($76.83 - $41.77) / $41.77 = 83.9% 11% stage 1 growth, 11% discount

Adjust Assumptions

8.5%
11.0%
3.0%

Key Value Driver

FCF growth rate (9% base case)

Terminal Value % of EV 38%
Implied Market Multiple 13.0x
Market is pricing in (growth) 3.2% vs our 8.5% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $42.13 from 42 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $61.13 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 $42.13 (from 42 analysts). Our estimate is 64% 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