Ribbon CommunicationsRBBN -4.07%58 EV-to-FCF is 42.36 as of Jul. 08, 2026, which is 102% above its 10-year median of 20.97. GuruFocus rates RBBN with a GF Score™ of 58/100 and a GF Value™ of $2.99 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,590 Software companies, Ribbon Communications ranks worse than 81.95% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Ribbon Communications's Enterprise Value is $706.2 Mil.
Ribbon Communications's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $16.7 Mil. Therefore, Ribbon Communications's EV-to-FCF for today is 42.36.
The historical rank and industry rank for Ribbon Communications's EV-to-FCF or its related term are showing as below:
RBBN'
s EV-to-FCF Range Over the Past 10 Years
Min: -204.75 Med: 20.97 Max: 1695.78
Current: 42.36
During the past 13 years, the highest EV-to-FCF of Ribbon Communications was 1695.78. The lowest was -204.75. And the median was 20.97.
RBBN's EV-to-FCF is ranked worse than 81.95% of 1590
companies
in the Software industry
Industry Median: 14.655
vs RBBN: 42.36
EV-to-FCF 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-FCF 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.
Ribbon Communications's PE Ratio (TTM) for today is calculated as:
Ribbon Communications's share price for today is $2.12.
Ribbon Communications's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.170.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
* 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, Ribbon Communications's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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.
Ribbon Communications EV-to-FCF vs Software Industry
For the Software industry and Technology sector, Ribbon Communications's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Ribbon Communications's EV-to-FCF falls into.
Ribbon Communications's current Enterprise Value is $706.2 Mil.
Ribbon Communications's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $16.7 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.
Ribbon Communications (RBBN) has a EV-to-FCF of 42.36 as of Jul. 08, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Ribbon Communications and its competitors. This is 102% above median its historical median of 20.97. According to the industry distribution chart, Ribbon Communications ranks #1303 out of 1590 companies in the Software industry, placing it in the top 81.9%.
Is Ribbon Communications' EV-to-FCF too high?
Ribbon Communications' current EV-to-FCF of 42.36 is 102% above median its 10-year median of 20.97. The Software industry median EV-to-FCF is 14.66. Ribbon Communications' value of 42.36 is 189% above this industry median. Based on the distribution chart, Ribbon Communications ranks #1303 out of 1590 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Ribbon Communications has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ribbon Communications' EV-to-FCF compare to XPER and SVCO?
According to the Software industry distribution chart, Ribbon Communications ranks #1303 out of 1590 companies for EV-to-FCF. This places Ribbon Communications in the lower half of its industry. The industry median EV-to-FCF is 14.66. Ribbon Communications' value of 42.36 is 189% above this benchmark. While the company's 10-year median is 20.97 vs. the industry median of 14.66, Ribbon Communications 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.66, based on 1,590 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ribbon Communications's current EV-to-FCF of 42.36 is 189% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Ribbon Communications and its competitors. For the Software industry, the median EV-to-FCF is 14.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ribbon Communications's current EV-to-FCF is 42.36, which is 102% above median its own 10-year median of 20.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ribbon Communications stock overvalued right now?
Based on GuruFocus' analysis, Ribbon Communications (RBBN) is currently considered Modestly Undervalued. The stock's GF Value™ is $2.99, compared to a current price of $2.12 — trading 29.1% below its estimated fair value. The current EV-to-FCF is 42.36, which is 102% above median its 10-year median of 20.97 and 189% above the Software industry median of 14.66. Ribbon Communications' overall GF Score™ is 58/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Ribbon Communications (RBBN), the current EV-to-FCF is 42.36 as of Jul. 08, 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 Ribbon Communications (RBBN) Overvalued in 2026?
Based on GuruFocus' analysis, Ribbon Communications stock appears to be undervalued.
The current stock price of $2.12 is trading 29.1% below its estimated GF Value™ of $2.99.
GuruFocus considers Ribbon Communications to be Modestly Undervalued.
Key valuation signals for RBBN:
EV-to-FCF: 42.36 (102% above median its 10-year median of 20.97)
GF Value™: $2.99 vs. price of $2.12 (29.1% below fair value)
Industry Position: 189% above the Software median (#1303 of 1590)
No single metric tells the full story. See the RBBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ribbon Communications Inc provides communications technology to service providers and enterprises, offering software and high-performance hardware products, network solutions, and services for secure data and voice communications, as well as high-bandwidth networking for residential and enterprise customers across industries such as finance, education, government, utilities, and transportation. It operates through two segments: Cloud and Edge, which generate maximum revenue and deliver software-centric, cloud-native solutions for VoIP, VoLTE, VoNR, and unified communications, and IP Optical Networks, which support growing telecommunications traffic from 5G, distributed cloud computing, and other applications. The Company generates the majority of its revenue from the United States.
58GF Score
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