MeritValue

RingCentral, Inc.

RNGdata completeness 100%15 fiscal years on file
The thesis, from the filings

RingCentral, Inc. earns about -81% on invested capital, below its ~9% cost of capital, with a roughly flat share count — no moat visible in the numbers. The estimate methods put fair value between $151.52 and $287.36 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.59B1$1.99B2$2.2B3$2.4B3$2.52B3
Net income−$376.3M4−$879.2M5−$165.2M6−$58.3M6$43.4M6
Operating cash flow$152.2M7$191.3M8$399.7M9$483.3M9$617.4M9
Capital expenditure$29M10$32.7M11$23.5M12$25M12$30.1M12
Free cash flow (derived)$123.2M7$158.6M8$376.1M9$458.3M9$587.3M9
Total debt—$1.64B13$3.11B14$1.53B15$1.25B15
Cash & equivalents$267.2M16$270M17$222.2M18$242.8M19$132.6M19
Diluted shares91.7M95.2M94.9M92.1M91.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$64.48
your share of equity
Profit it earned you last year
$4.76
Free cash flow it threw off
$64.39
Debt you’d be carrying
$137.46

10 shares is a claim on −$64.48 of net worth that earned you $4.76 and generated $64.39 of cash last year, against $137.46 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-81% avg · 5y
FY21 -340%FY22 -78%FY23 -4%FY24 2%FY25 16%

It earned about -81% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 23% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $151.52 and $287.36 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$287.36
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$458.3M
DCF · Growth Exit 5Y
$151.52
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$458.3M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
book value / share count missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $151.52
The three cases
Bear0.0%$59.49
Base20.0%$151.52
Bull20.0%$151.52

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001384905-24-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001384905-25-000014 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001384905-26-000021 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001384905-24-000013 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001384905-25-000014 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001384905-26-000021 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001384905-24-000013 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001384905-25-000014 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001384905-26-000021 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001384905-24-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001384905-25-000014 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001384905-26-000021 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-12-31 · accession 0001384905-24-000013 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-12-31 · accession 0001384905-25-000014 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-12-31 · accession 0001384905-26-000021 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2021-12-31 · accession 0001384905-23-000017 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2022-12-31 · accession 0001384905-24-000013 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-12-31 · accession 0001384905-25-000014 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-12-31 · accession 0001384905-26-000021 (CashAndCashEquivalentsAtCarryingValue)