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RingCentralRNG +0.61%65 EV-to-OCF is 9.97 as of Aug. 25, 2026, which is 66% below its 10-year median of 29.50. GuruFocus rates RNG with a GF Score™ of 65/100 and a GF Value™ of $39.08 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,880 Software companies, RingCentral ranks worse than 58.92% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, RingCentral's Enterprise Value is $6,689 Mil.
RingCentral's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $671 Mil. Therefore, RingCentral's EV-to-OCF for today is 9.97.
The historical rank and industry rank for RingCentral's EV-to-OCF or its related term are showing as below:
RNG'
s EV-to-OCF Range Over the Past 10 Years
Min: -2695.09 Med: 29.5 Max: 460.22
Current: 9.97
During the past 13 years, the highest EV-to-OCF of RingCentral was 460.22. The lowest was -2695.09. And the median was 29.50.
RNG's EV-to-OCF is ranked worse than 58.92% of 2880
companies
in the Software industry
Industry Median: 6.98
vs RNG: 9.97
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
RingCentral's PE Ratio (TTM) for today is calculated as:
RingCentral's share price for today is $67.49.
RingCentral's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.250.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
RingCentral EV-to-OCF Related Terms
RingCentral EV-to-OCF Historical Data
* Premium members only.
The historical data trend for RingCentral's EV-to-OCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, RingCentral's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RingCentral EV-to-OCF vs Software Industry
For the Software industry and Technology sector, RingCentral's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where RingCentral's EV-to-OCF falls into.
RingCentral's current Enterprise Value is $6,689 Mil.
RingCentral's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $671 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RingCentral (RNG) has a EV-to-OCF of 9.97 as of Aug. 25, 2026. This is 66% below median its historical median of 29.50. According to the industry distribution chart, RingCentral ranks #1697 out of 2880 companies in the Software industry, placing it in the top 58.9%.
Is RingCentral's EV-to-OCF too high?
RingCentral's current EV-to-OCF of 9.97 is 66% below median its 10-year median of 29.50. The Software industry median EV-to-OCF is 6.98. RingCentral's value of 9.97 is 42.8% above this industry median. Based on the distribution chart, RingCentral ranks #1697 out of 2880 companies in the Software industry, which is below the industry midpoint. Overall, RingCentral has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RingCentral's EV-to-OCF compare to BULL and LIF?
According to the Software industry distribution chart, RingCentral ranks #1697 out of 2880 companies for EV-to-OCF. This places RingCentral in the lower half of its industry. The industry median EV-to-OCF is 6.98. RingCentral's value of 9.97 is 42.8% above this benchmark. While the company's 10-year median is 29.50 vs. the industry median of 6.98, RingCentral has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.98, based on 2,880 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RingCentral's current EV-to-OCF of 9.97 is 42.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RingCentral's current EV-to-OCF is 9.97, which is 66% below median its own 10-year median of 29.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RingCentral stock overvalued right now?
Based on GuruFocus' analysis, RingCentral (RNG) is currently considered Significantly Overvalued. The stock's GF Value™ is $39.08, compared to a current price of $67.49 — trading 72.7% above its estimated fair value. The current EV-to-OCF is 9.97, which is 66% below median its 10-year median of 29.50 and 42.8% above the Software industry median of 6.98. RingCentral's overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For RingCentral (RNG), the current EV-to-OCF is 9.97 as of Aug. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RingCentral (RNG) Overvalued in 2026?
Based on GuruFocus' analysis, RingCentral stock appears to be overvalued.
The current stock price of $67.49 is trading 72.7% above its estimated GF Value™ of $39.08.
GuruFocus considers RingCentral to be Significantly Overvalued.
Key valuation signals for RNG:
EV-to-OCF: 9.97 (66% below median its 10-year median of 29.50)
GF Value™: $39.08 vs. price of $67.49 (72.7% above fair value)
Industry Position: 42.8% above the Software median (#1697 of 2880)
No single metric tells the full story. See the RNG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RingCentral is a unified communications as a service, or UCaaS, provider. Its software helps users communicate and collaborate via voice, video, and messaging across all device types and all from one platform. RingCentral helps customers modernize and move from legacy on-premises systems to modern, cloud-based systems. Beyond its core RingCentral MVP solution, RingCentral also offers a cloud-based contact center solution, a stand-alone video meetings solution, and webinars.
65GF Score
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