Ribbon Communications Valuation
| RBBN Stock | USD 4.14 0.11 2.73% |
At this time, the company appears to be undervalued. Ribbon Communications holds a recent Real Value of $4.76 per share. The prevailing price of the company is $4.14. Our model determines the value of Ribbon Communications from analyzing the company fundamentals such as Operating Margin of 0.01 %, return on equity of -0.13, and Shares Outstanding of 175.38 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Ribbon Communications' valuation include:
Price Book 1.7869 | Enterprise Value | Enterprise Value Ebitda 22.2176 | Price Sales 0.8738 | Enterprise Value Revenue 1.2989 |
Undervalued
Today
Please note that Ribbon Communications' price fluctuation is slightly risky at this time. Calculation of the real value of Ribbon Communications is based on 3 months time horizon. Increasing Ribbon Communications' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Ribbon Communications is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ribbon Stock. However, Ribbon Communications' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 4.14 | Real 4.76 | Target 5.9 | Hype 4.12 |
The intrinsic value of Ribbon Communications' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Ribbon Communications' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Ribbon Communications helps investors to forecast how Ribbon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Ribbon Communications more accurately as focusing exclusively on Ribbon Communications' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Ribbon Communications' intrinsic value based on its ongoing forecasts of Ribbon Communications' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ribbon Communications' closest peers.
Ribbon Communications Cash |
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Ribbon Valuation Trend
Knowing Ribbon Communications' actual value is paramount for traders when making sound investment determinations. Using both Ribbon Communications' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Ribbon Revenue by Product
Ribbon Communications Total Value Analysis
Ribbon Communications is at this time forecasted to have valuation of 1.05 B with market capitalization of 706.8 M, debt of 287.03 M, and cash on hands of 55.67 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Ribbon Communications fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.05 B | 706.8 M | 287.03 M | 55.67 M |
Ribbon Communications Investor Information
About 18.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.79. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Ribbon Communications has Price/Earnings To Growth (PEG) ratio of 1.79. The entity recorded a loss per share of 0.31. The firm had not issued any dividends in recent years. Ribbon Communications had 1:5 split on the 30th of January 2015. Based on the key indicators related to Ribbon Communications' liquidity, profitability, solvency, and operating efficiency, Ribbon Communications is not in a good financial situation at this time. It has a very high probability of going through financial hardship in February.Ribbon Communications Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Ribbon suggests not a very effective usage of assets in January.Ribbon Communications Ownership Allocation
Ribbon Communications owns a total of 175.38 Million outstanding shares. The majority of Ribbon Communications outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Ribbon Communications to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Ribbon Communications. Please pay attention to any change in the institutional holdings of Ribbon Communications as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Ribbon Communications Profitability Analysis
The company reported the previous year's revenue of 826.34 M. Net Loss for the year was (66.21 M) with profit before overhead, payroll, taxes, and interest of 446.86 M.About Ribbon Communications Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Ribbon Communications. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ribbon Communications based exclusively on its fundamental and basic technical indicators. By analyzing Ribbon Communications's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Ribbon Communications's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Ribbon Communications. We calculate exposure to Ribbon Communications's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Ribbon Communications's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 436.4 M | 458.2 M | |
| Pretax Profit Margin | (0.06) | (0.06) | |
| Net Loss | (0.07) | (0.08) | |
| Gross Profit Margin | 0.53 | 0.65 |
Ribbon Communications Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 170.4 M | |
| Quarterly Earnings Growth Y O Y | -0.678 |
Ribbon Communications Current Valuation Indicators
Ribbon Communications' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Ribbon Communications' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Ribbon Communications, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Ribbon Communications' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Ribbon Communications' worth.When determining whether Ribbon Communications offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ribbon Communications' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ribbon Communications Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ribbon Communications Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Ribbon Communications. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. To learn how to invest in Ribbon Stock, please use our How to Invest in Ribbon Communications guide.You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ribbon Communications. If investors know Ribbon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ribbon Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.68) | Earnings Share (0.31) | Revenue Per Share | Quarterly Revenue Growth 0.035 | Return On Assets |
The market value of Ribbon Communications is measured differently than its book value, which is the value of Ribbon that is recorded on the company's balance sheet. Investors also form their own opinion of Ribbon Communications' value that differs from its market value or its book value, called intrinsic value, which is Ribbon Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ribbon Communications' market value can be influenced by many factors that don't directly affect Ribbon Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ribbon Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ribbon Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ribbon Communications' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.