FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Ribbon Communications FCF Yield % Related Terms
Ribbon Communications FCF Yield % Historical Data
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The historical data trend for Ribbon Communications's FCF Yield % 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.
FRA:NU42 vs XPER, SVCO, RMNI: FCF Yield % Comparison
For the Software - Application subindustry, Ribbon Communications's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Ribbon Communications's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Ribbon Communications's FCF Yield % falls into.
* 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 (FRA:NU42) has a FCF Yield % of 4.46 as of Jul. 08, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Ribbon Communications and its competitors. This is 87% above median its historical median of 2.39. According to the industry distribution chart, Ribbon Communications ranks #968 out of 2862 companies in the Software industry, placing it in the top 33.8%.
Is Ribbon Communications' FCF Yield % too high?
Ribbon Communications' current FCF Yield % of 4.46 is 87% above median its 10-year median of 2.39. The Software industry median FCF Yield % is 0.91. Ribbon Communications' value of 4.46 is 390.1% above this industry median. Based on the distribution chart, Ribbon Communications ranks #968 out of 2862 companies in the Software industry, which is above the industry midpoint. Overall, Ribbon Communications has a GF Score™ of 57/100, reflecting its overall financial health beyond just this single metric.
How does Ribbon Communications' FCF Yield % compare to XPER and SVCO?
According to the Software industry distribution chart, Ribbon Communications ranks #968 out of 2862 companies for FCF Yield %. This puts Ribbon Communications in the upper half of its industry. The industry median FCF Yield % is 0.91. Ribbon Communications' value of 4.46 is 390.1% above this benchmark. While the company's 10-year median is 2.39 vs. the industry median of 0.91, 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.91, based on 2,862 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ribbon Communications's current FCF Yield % of 4.46 is 390.1% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Ribbon Communications and its competitors. For the Software industry, the median FCF Yield % is 0.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ribbon Communications's current FCF Yield % is 4.46, which is 87% above median its own 10-year median of 2.39. 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?
Ribbon Communications (FRA:NU42) has a current FCF Yield % of 4.46. The stock's GF Value™ is €2.62, compared to a current price of €1.86 — trading 29% below its estimated fair value. The current FCF Yield % is 4.46, which is 87% above median its 10-year median of 2.39 and 390.1% above the Software industry median of 0.91. Ribbon Communications' overall GF Score™ is 57/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Ribbon Communications (FRA:NU42), the current FCF Yield % is 4.46 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 (FRA:NU42) Overvalued in 2026?
Based on GuruFocus' analysis, Ribbon Communications stock appears to be undervalued.
The current stock price of €1.86 is trading 29% below its estimated GF Value™ of €2.62.
Key valuation signals for FRA:NU42:
FCF Yield %: 4.46 (87% above median its 10-year median of 2.39)
GF Value™: €2.62 vs. price of €1.86 (29% below fair value)
Industry Position: 390.1% above the Software median (#968 of 2862)
No single metric tells the full story. See the FRA:NU42 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.
57GF Score
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