Stock fact sheet · data as of
Ribbon Communications Inc. (RBBN): fair value, margin of safety and Wheel Score
Ticker symbol RBBN · Technology · Software - Application · United States · Speculative
Is RBBN undervalued?
RBBN has a margin of safety of 68%: the stock closed at 1.54 on 5 Nov 2026 against a GLS average fair value of 4.75. 5 of the 6 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 6 models disagree widely: EPV gives 1.15 while DCF gives 10.77. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files RBBN under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for RBBN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 10.77 | +599% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 2.25 | +46% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 5.94 | +286% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.60 | +69% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 5.76 | +274% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 1.15 | -25% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1.72 | -212% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 2.55 | +66% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: RBBN passes 3 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 2.7 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 4.6%, ROE 8.8%, ROA 3.3% - with debt at 0.90 times equity and negative free cash flow.
Ribbon Communications Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Cloud and Edge 56%, IP Optical Networks 44% (quarter Q3 FY2026).
Institutional ownership scores 9/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 30 Oct 2026.
| Piotroski F-score | 3 / 9 | ROIC | 4.6% |
|---|---|---|---|
| GLS Moat | 2.7 / 10 | ROE | 8.8% |
| Debt / equity | 0.90 | ROA | 3.3% |
| Free-cash-flow yield | -10.6% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 26: Weak
RBBN scores 26 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (1,034 open interest, 29 a day); and filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 5, can repay its debt - 6.3 years to repay its debt (over 3); and filter 7, a premium worth selling - implied volatility 175% (over 80%); and filter 8, big enough - market cap $276M (under $1.0B); and filter 9, not a penny stock - price 1.54 (under $5), and the parts are thin too - value strong, premium weak, moat weak, health weak, red flags fair, option trading weak, stability weak. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 175%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is thin - 1,034 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 1.1M shares a day on a market cap of $276M, with a beta of 1.47 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (1,034 open interest, 29 a day) |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Fails | 6.3 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 175% (over 80%) |
| 8 | Big enough | Fails | market cap $276M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 1.54 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 68% below fair value | |
| Premium | Weak | implied volatility 175% | |
| Moat | Weak | moat 2.7/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Weak | 29 contracts a day, 1,034 open interest | |
| Stability | Weak | beta 1.47, $276M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for RBBN in the nightly calendar.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to Ribbon Communications Inc. by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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| AZ A2Z Cust2Mate Solutions Corp. | 6.46 | - | - | 14Weak | $284M |
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| XPER Xperi Inc. | 5.36 | 5.86 | +9% | 27Weak | $261M |
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| BLND Blend Labs, Inc. | 1.28 | 1.30 | +2% | 13Weak | $303M |
| TRVG trivago N.V. | 3.54 | 6.20 | +43% | 29Weak | $250M |
| SMRT SmartRent, Inc. | 1.62 | 0.2963 | -447% | 16Weak | $310M |
| ARQQ Arqit Quantum Inc. | 13.87 | 2.58 | -438% | 12Weak | $241M |
| RWWI Rand Worldwide, Inc. | 7.16 | 18.38 | +61% | 34No options | $241M |
| GLOO Gloo Holdings, Inc. | 2.90 | - | - | 15Weak | $238M |
| IMMR Immersion Corporation | 7.16 | 179.67 | +96% | 49Weak | $238M |
| KLTR Kaltura, Inc. | 1.54 | 2.63 | +41% | 35Weak | $235M |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about RBBN
Is RBBN undervalued right now?
By the GLS models, yes: at 1.54 the stock is 68% below the average fair value of 4.75 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RBBN and what does it mean?
RBBN scores 26 out of 100 (Weak) - it fails Wheel Trade Filters 1, 2, 4, 5, 7, 8, 9. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for RBBN?
4.75 per share as of 5 Nov 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Ribbon Communications Inc. report earnings next?
No upcoming earnings date is recorded for RBBN in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does RBBN have listed options, and how liquid are they?
Yes. The nightly snapshot found 24 listed contracts with 1,034 open interest across all expiries and implied volatility of 175% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.