RingCentral Inc
NYSE:RNG
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its Industry Average (24.5), the stock would be worth $37.57 (8% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 26.7 | $40.9 |
0%
|
| Industry Average | 24.5 | $37.57 |
-8%
|
| Country Average | 19.6 | $30.1 |
-26%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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$4.1B
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/ |
Jan 2026
$145.9m
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= |
|
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$4.1B
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/ |
Dec 2026
$619.1m
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= |
|
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$4.1B
|
/ |
Dec 2027
$664.3m
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= |
|
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$4.1B
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/ |
Dec 2028
$717.3m
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= |
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$4.1B
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/ |
Dec 2029
$720.9m
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= |
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$4.1B
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/ |
Dec 2030
$770.2m
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= |
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$4.1B
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/ |
Dec 2031
$614m
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= |
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$4.1B
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/ |
Dec 2032
$618m
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= |
|
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$4.1B
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/ |
Dec 2033
$619.1m
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
RingCentral Inc
NYSE:RNG
|
3.5B USD | 26.7 | 80.5 | |
| US |
|
Ezenia! Inc
OTC:EZEN
|
567B USD | -177 298 | -180 630.8 | |
| US |
|
Palantir Technologies Inc
NASDAQ:PLTR
|
341B USD | 235.8 | 209.4 | |
| DE |
|
SAP SE
XETRA:SAP
|
172B EUR | 16.2 | 24 | |
| US |
|
Salesforce Inc
NYSE:CRM
|
166.9B USD | 18.8 | 22.4 | |
| US |
|
Applovin Corp
NASDAQ:APP
|
151.7B USD | 36.8 | 45.5 | |
| US |
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Intuit Inc
NASDAQ:INTU
|
109.9B USD | 20.4 | 25.3 | |
| US |
|
Adobe Inc
NASDAQ:ADBE
|
99.6B USD | 10.9 | 13.8 | |
| US |
|
Synopsys Inc
NASDAQ:SNPS
|
95.9B USD | 105.3 | 87 | |
| US |
N
|
NCR Corp
LSE:0K45
|
86.7B USD | 604.2 | 2 065.2 | |
| US |
|
Cadence Design Systems Inc
NASDAQ:CDNS
|
90.5B USD | 54.2 | 81.6 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
RingCentral Inc
Glance View
In the bustling world of business communications, RingCentral Inc. stands as a pivotal player, revolutionizing how companies connect in the digital era. Founded in 1999 by Vlad Shmunis, RingCentral began with a vision to simplify business communications through cloud technology. Headquartered in Belmont, California, the company has grown to become a global leader in Unified Communications as a Service (UCaaS), a platform that integrates various communication tools—voice, messaging, video conferencing, and collaboration—into a single, seamless solution. This transition to cloud-based communications allows businesses to operate more efficiently, breaking free from the constraints of traditional on-premise systems. RingCentral’s financial engine is largely driven by its subscription-based revenue model, targeting businesses small and large across a range of sectors. By offering scalable solutions that can be tailored to specific enterprise needs, the company attracts a diverse clientele, from startups to multinational corporations. Furthermore, its strategic partnerships and integrations, such as those with popular tools like Salesforce and Microsoft, deepen its value proposition by enabling users to connect their communication systems with existing workflows. The continuous innovation in its offerings and the shift towards remote work and hybrid models have amplified its relevance, allowing RingCentral to capitalize on the increasing demand for flexible and reliable communication solutions.
