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Ribbon Communications (NAS:RBBN) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Ribbon Communications Forward PE Ratio Related Terms
Ribbon Communications Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Ribbon Communications's Forward PE Ratio 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.
Ribbon Communications Forward PE Ratio Chart
Ribbon Communications Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2024-12
2025-12
Forward PE Ratio
23.75
33.11
12.47
8.21
14.04
10.81
Ribbon Communications Quarterly Data
2015-12
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
23.75
19.46
33.11
333.33
43.86
29.41
12.47
15.95
22.27
10.67
8.21
9.36
14.04
15.62
15.47
11.13
10.81
16.77
17.46
RBBN vs CURR, XPER, API: Forward PE Ratio Comparison
For the Software - Application subindustry, Ribbon Communications's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, Ribbon Communications's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Ribbon Communications's Forward PE Ratio falls into.
Ribbon Communications Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Ribbon Communications (RBBN) has a Forward PE Ratio of 24.71 as of Aug. 07, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Ribbon Communications and its competitors. According to the industry distribution chart, Ribbon Communications ranks #717 out of 1174 companies in the Software industry, placing it in the top 61.1%.
Is Ribbon Communications' Forward PE Ratio too high?
Ribbon Communications' current Forward PE Ratio is 24.71. The Software industry median Forward PE Ratio is 19.45. Ribbon Communications' value of 24.71 is 27.1% above this industry median. Based on the distribution chart, Ribbon Communications ranks #717 out of 1174 companies in the Software industry, which is below the industry midpoint. Overall, Ribbon Communications has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ribbon Communications' Forward PE Ratio compare to CURR and XPER?
According to the Software industry distribution chart, Ribbon Communications ranks #717 out of 1174 companies for Forward PE Ratio. This places Ribbon Communications in the lower half of its industry. The industry median Forward PE Ratio is 19.45. Ribbon Communications' value of 24.71 is 27.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 19.45, based on 1,174 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ribbon Communications's current Forward PE Ratio of 24.71 is 27.1% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Ribbon Communications and its competitors. For the Software industry, the median Forward PE Ratio is 19.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ribbon Communications's current Forward PE Ratio is 24.71. 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 $2.87, compared to a current price of $2.11 — trading 26.5% below its estimated fair value. The current Forward PE Ratio is 24.71 and 27.1% above the Software industry median of 19.45. Ribbon Communications' overall GF Score™ is 55/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Ribbon Communications (RBBN), the current Forward PE Ratio is 24.71 as of Aug. 07, 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 $2.11 is trading 26.5% below its estimated GF Value™ of $2.87.
GuruFocus considers Ribbon Communications to be Modestly Undervalued.
Key valuation signals for RBBN:
Forward PE Ratio: 24.71
GF Value™: $2.87 vs. price of $2.11 (26.5% below fair value)
Industry Position: 27.1% above the Software median (#717 of 1174)
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.
55GF Score
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