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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-09-02), Ribbon Communications's 1-Year Sharpe Ratio is -1.00.
Ribbon Communications (NAS:RBBN) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Ribbon Communications 1-Year Sharpe Ratio Related Terms
RBBN vs SVMB, BLND, ALIT: 1-Year Sharpe Ratio Comparison
For the Software - Application subindustry, Ribbon Communications's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Software Industry
For the Software industry and Technology sector, Ribbon Communications's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Ribbon Communications's 1-Year Sharpe Ratio falls into.
Ribbon Communications 1-Year Sharpe Ratio Calculation
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Ribbon Communications (RBBN) has a 1-Year Sharpe Ratio of -1.00 as of Sep. 02, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Ribbon Communications and its competitors.
Is Ribbon Communications' 1-Year Sharpe Ratio too high?
Ribbon Communications' current 1-Year Sharpe Ratio is -1.00. Overall, Ribbon Communications has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ribbon Communications' 1-Year Sharpe Ratio compare to SVMB and BLND?
Ribbon Communications' 1-Year Sharpe Ratio of -1.00 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Software company?
A good 1-Year Sharpe Ratio depends on the Software industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Ribbon Communications and its competitors. Ribbon Communications's current 1-Year Sharpe Ratio is -1.00. 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 Possible Value Trap. The stock's GF Value™ is $2.89, compared to a current price of $1.96 — trading 32.2% below its estimated fair value. The current 1-Year Sharpe Ratio is -1.00. Ribbon Communications' overall GF Score™ is 50/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Ribbon Communications (RBBN), the current 1-Year Sharpe Ratio is -1.00 as of Sep. 02, 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 $1.96 is trading 32.2% below its estimated GF Value™ of $2.89.
GuruFocus considers Ribbon Communications to be Possible Value Trap.
Key valuation signals for RBBN:
1-Year Sharpe Ratio: -1.00
GF Value™: $2.89 vs. price of $1.96 (32.2% below fair value)
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.
50GF Score
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