RingCentral (RNG) has drawn fresh attention after appointing Mahmoud ElAssir to its Board of Directors, a technology and AI transformation leader currently serving as Senior Vice President and Chief Technology Officer at UnitedHealth Group.

Against this appointment, RingCentral’s share price has been choppy, with a 1-day share price return of 3.49% decline and a 30-day share price return of 8.34% decline. The 1-year total shareholder return of 13.20% decline and 5-year total shareholder return of 92.36% decline point to weaker long-term results, despite a 90-day share price return of 6.75% and year-to-date share price return of 3.23%. This suggests any recent momentum is still tentative as investors reassess growth potential and risk around its AI and cloud ambitions at a last close of US$28.48.

If this AI focused board move has your attention, it could be a moment to scan other high growth tech and AI names through high growth tech and AI stocks for additional ideas.

With RingCentral trading at US$28.48 and an implied intrinsic discount of 73.20%, plus a 16.34% gap to the average analyst target, you have to ask: is this a genuine mispricing, or is future growth already baked in?

Most Popular Narrative: 14.3% Undervalued

With RingCentral last closing at US$28.48 and the most followed narrative pointing to a fair value near the low US$30s, the gap centers on how durable earnings growth and margins could be.

The analysts have a consensus price target of $33.235 for RingCentral based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $55.0, and the most bearish reporting a price target of just $27.0.

Want to see what underpins that valuation gap? The narrative leans on steady revenue expansion, sharply higher margins, and a future earnings base that looks very different to today.

Result: Fair Value of $33.24 (UNDERVALUED)

However, this hinges on RingCentral holding its own against bundled suites like Microsoft Teams, and on key partners sticking with the company rather than building rival offerings.

Build Your Own RingCentral Narrative

If you want to weigh the same facts differently or test your own assumptions, you can build a custom RingCentral story in just a few minutes. To get started, use Do it your way.

A great starting point for your RingCentral research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.