Allot Communications Ltd (ALLT) fair value: what the stock is really worth
As of Oct 30, 2026: fair value (intrinsic value) of Allot Communications Ltd stock $2.10, price $8.68, that is 75.8% below the price, quality 60 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Oct 31, 2026.
How to read this chart
60‑month range $1.29 – $18.90 · fair‑value band $1.58 – $2.63 · the $8.68 price screens above the $2.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Oct 31, 2026.
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Allot Ltd., together with its subsidiaries, develops, sells, and markets network intelligence and security solutions in Israel, Europe, Asia, Oceania, the Americas, the Middle East, and Africa.
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The company's Allot Secure Management platform, which provides end-to-end security management infrastructure that comprises Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, Allot IoTSecure, Allot EndpointSecure, and Allot BusinessSecure, as well as Allot Secure Cloud and Allot Network Protection as a Service.
It also provides DDoS Secure, a solution that provides attack detection and mitigation services; NetProtect that offers protection from multi-vector attacks against network infrastructure, subscribers, and applications; 5GNetProtect, a solution for 5G SA architecture; AllotSmart solutions, which include Smart5G, SmartVisibility, SmartTraffic QoE, SmartPCC, and SmartSentinel that enables telecommunication providers to comply with a range of regulatory requirements targeted to assist governments with securing the public; and Allot NetXplorer, which provides a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning.
The company markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to mobile and fixed broadband service providers, cable operators, satellite service providers, private networks, data centers, governments, and financial and educational institutions.
Allot Ltd. was formerly known as Allot Communications Ltd. and changed its name to Allot Ltd. in October 2018. The company was incorporated in 1996 and is headquartered in Hod Hasharon, Israel.
Stock analysis
Allot Communications Ltd (ALLT) currently trades at $8.68, while our model-based Fair Value estimate is $2.10, 75.8% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $2.41 per share, and 0 of the 22 models we run sit above the $8.68 price.
Bear case: the Earnings-Based group reads lowest at $0.5700, and 22 of the 22 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $1.58 (bear) to $2.63 (bull), the price of $8.68 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Allot Communications Ltd reported revenue of $102M in FY2025 versus $146M in FY2021, a compound −8.5%/yr. Reported net income was $3.7M in FY2025.
Key figures
Market cap $433M Small · P/E ratio 39.5 · P/S ratio 3.97 · EPS (TTM) $0.2200 · Net margin 9.4% · Return on equity 9.4% · Return on assets (EBIT) −14.2% · Operating margin 4.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 41 out of 100 (low confidence).
What moves the price
The share trades about 25% below its 52-week high and 39% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −21% fair-value upside, at −76%, ALLT screens richer than that median.
Fair Value models
Bear$1.58Fair Value $2.10Bull$2.63
Price $8.68 · Downside -75.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.1844 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+10.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−6.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−5.6%
Start year 2020 (pandemic). Over 10 years: +0.2% a year
Revenue growth 24 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.4%
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−6.6% (2020) → 3.5% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: no profitable base year
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+21.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+11.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +18.3% a year for the price and +8.7% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Compare Allot Communications Ltd with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Infrastructure · 340 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside−75.8% · Bottom 25%
Profitability
Return on equity (12 months)9.4% · Above median
Return on assets2.2% · Below median
Net margin (12 months)9.4% · Above median
Operating margin (12 months)4.0% · Below median
Growth and dividend
Revenue growth (quarter YoY)15.3% · Above median
Balance sheet
Debt / equity0.35× · Above median
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
P/E (12 months)39.5× · Pricier than median
P/B3.82× · Pricier than median
P/S (12 months)3.97× · Pricier than median
Price / free cash flow27.9× · Pricier than median
EV/EBITDA43.9× · Priciest 25%
PEG0.83× · Cheaper than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 20
FUTURE (revenue growth)77· sector 60
PAST (return on equity)37· sector 23
HEALTH (low debt)82· sector 98
DIVIDEND (yield)0· sector 30
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Allot Communications Ltd (ALLT) overvalued or undervalued?
As of Oct 31, 2026, our model estimates a fair value of $2.10 versus a price of $8.68, about 76% lower (overvalued).
What is the fair value of ALLT?
Our model-based fair value for Allot Communications Ltd is $2.10 (as of Oct 31, 2026), built from audited fundamentals. The current price: $8.68.
What is the quality score of ALLT?
Allot Communications Ltd has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Allot Communications Ltd (ALLT)?
Our model-based price target is the fair value of $2.10 (as of Oct 31, 2026) from 24 valuation models. Cautious scenario $1.58, optimistic scenario $2.63. It is a calculation from audited fundamentals, not an analyst target.
What is the Allot Communications Ltd stock forecast for 2026?
Our models put fair value at $2.10, about 76% lower versus a price of $8.68 (overvalued). Cautious scenario $1.58, optimistic scenario $2.63. The calculation is refreshed regularly with new filings.
What is the revenue of Allot Communications Ltd (ALLT)?
Allot Communications Ltd reported trailing-twelve-month revenue of about $109M (latest available figure, as of Oct 31, 2026).
What growth is priced into Allot Communications Ltd (ALLT)?
For today's price to be fair in a discounted-cash-flow model, Allot Communications Ltd would have to grow free cash flow by +21.1 % per year for five years (discount rate 12.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -5.6 % per year. As of Oct 31, 2026.
What discount rate (WACC) does the fair value of ALLT use?
Our models discount Allot Communications Ltd at 12.6 %: a base by market capitalisation (small), damped by beta 1.48, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Allot Communications Ltd that is +21.1 % per year a year over ten years, using the same discount rate (12.6 %) and the same formula as our fair value.
How much growth has Allot Communications Ltd (ALLT) delivered so far?
Over the past 5 years revenue at Allot Communications Ltd grew -5.6 % a year. The price currently implies +21.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Allot Communications Ltd (ALLT) growing?
The median revenue growth in the sector is +11.0 % a year. That is the yardstick for the growth priced into Allot Communications Ltd (+21.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Allot Communications Ltd (ALLT)?
The free-cash-flow yield on the price is 3.58 %: that much free cash flow Allot Communications Ltd produces per unit of market value. When it exceeds the discount rate of our models (12.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Allot Communications Ltd (ALLT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Allot Communications Ltd it is $2.10 per share (as of Oct 31, 2026), against a price of $8.68. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Allot Communications Ltd stock overvalued or undervalued in 2026?
As of Oct 31, 2026, ALLT trades above its calculated fair value: price $8.68, fair value $2.10, a gap of about −76% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ALLT?
No. The price is what the market pays today ($8.68); the fair value is what the company's own numbers justify ($2.10). For Allot Communications Ltd the two are $6.58 per share apart. That gap is exactly why we show both numbers side by side.
How much is Allot Communications Ltd worth?
The market values Allot Communications Ltd at about $433M (market capitalisation, as of Oct 31, 2026). Per share that is $8.68; our models calculate a fair value of $2.10 per share.
What do the bullish and bearish scenarios say about ALLT?
Our models span a range for Allot Communications Ltd: cautious scenario $1.58, base $2.10, optimistic $2.63 per share (as of Oct 31, 2026, price $8.68). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ALLT?
Allot Communications Ltd trades at a price-to-earnings ratio of 39.5 (as of Oct 31, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $2.10 is built from several models across several years. Other multiples: PEG 0.8, P/B 3.8, P/S 4.0, EV/EBITDA 43.9.
What is the PEG ratio of ALLT?
The PEG ratio of Allot Communications Ltd is 0.83 (P/E divided by earnings growth, as of Oct 31, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Allot Communications Ltd (ALLT)?
Balance-sheet figures for Allot Communications Ltd (as of Oct 31, 2026): return on equity 9.4%, debt of 0.35 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is ALLT from its 52-week high?
Allot Communications Ltd trades at $8.68, about 25% below its 52-week high of $11.50 and 39% above the low of $6.25 (as of Oct 30, 2026). Distance from the high says nothing about value: that is what the fair value of $2.10 is for.
Which stocks are comparable to Allot Communications Ltd?
From the same area (Technology) we also value Microsoft Corporation, Palantir Technologies Inc, Oracle Corporation, Palo Alto Networks, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Allot Communications Ltd stock attractive at the current price?
The data as of Oct 31, 2026: price $8.68, calculated fair value $2.10 (−76%), Quality Score 60/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ALLT calculated?
We run Allot Communications Ltd through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $2.10, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.9 % above its aggregate fair value. Allot Communications Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Allot Communications Ltd (ALLT)?
The closing price on Oct 30, 2026 was $8.68. Our model-based fair value is $2.10, about 76% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Allot Communications Ltd right now?
The price sits above even our optimistic bull case ($2.63). The favourable scenario is already priced in. Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Allot Communications Ltd
How large is the market capitalisation of Allot Communications Ltd (ALLT)?
The market capitalisation of Allot Communications Ltd is $433M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Allot Communications Ltd (ALLT)?
The price-to-sales ratio of Allot Communications Ltd is 3.97 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Allot Communications Ltd (ALLT)?
Earnings per share at Allot Communications Ltd are $0.2200 (price ÷ EPS = P/E 39.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Allot Communications Ltd (ALLT)?
The net margin of Allot Communications Ltd is 9.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Allot Communications Ltd (ALLT)?
The return on equity (ROE) of Allot Communications Ltd is 9.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Allot Communications Ltd (ALLT)?
On an EBIT basis the return on assets of Allot Communications Ltd is −14.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Allot Communications Ltd (ALLT)?
The operating margin of Allot Communications Ltd is 4.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Allot Communications Ltd (ALLT)?
Revenue at Allot Communications Ltd is growing +15.3% versus a year earlier (3y avg −6.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Allot Communications Ltd (ALLT)?
Earnings per share at Allot Communications Ltd are growing +817% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Allot Communications Ltd (ALLT) hold?
Allot Communications Ltd holds more cash than debt, $14.9M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Oct 31, 2026