Ribbon Communications, formerly Sonus Networks, provides networked solutions for communications service providers and enterprises. Its products include session border controllers, Session Initiation Protocol session management servers, Voice over IP switches, SIP application servers, multi-protocol signaling gateways and network analytics tools. The company was founded in 1997 and is based in Westford, Massachusetts.
RBBN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ribbon Communications Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ribbon Communications Inc ranked in the 59th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 111% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Ribbon Communications Inc, consider:
As a business, RBBN is generating more cash flow than merely 18.43% of positive cash flow stocks in the Communication Services.
Ribbon Communications Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Ribbon Communications Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -30.7. This coverage rate is greater than that of merely 2.28% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Ribbon Communications Inc? See PTNR, BCE, ATUS, CNSL, and CEL.