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AudioCodes Ltd (AUDC) Fair Value & Analysis

Technology · US · Market cap $230M

AL AudioCodes Ltd logo AudioCodes Ltd AUDC · US
Price$9.94
Fair Value$7.04
Upside-29.2%
Quality70/100
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Healthy Growth
Thin margins · 2.8% net margin
Low debt · generates free cash flow
4.28% dividend yield
Ranks above peers (11/15)
Narrow moat 35/100
Evidence: High Range $5.28 – $8.80 Share as image

Fair value as of: Jul 14, 2026

From 26 valuation models · updated 27 days ago

Share price +3.4% over the past month.

A solid business, but screening 29% overvalued on our models.

What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case ($8.80). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

$32.29 $6.54 Fair Value $7.04 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range $6.54 – $32.29 · fair‑value band $5.28 – $8.80 · the $9.94 price screens above the $7.04 fair value. Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

AudioCodes Ltd (AUDC) currently trades at $9.94, while our model-based Fair Value estimate is $7.04, implying the stock looks roughly 29.2% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, AudioCodes Ltd generated revenue of $247M at a net margin of 2.8%. Revenue grew 2.9% year over year. It earns a return on equity of 4.1%. Net debt stands at $23.8M. Fundamentals as of Jul 14, 2026

Our scenario range runs from $5.28 (bear case) to $8.80 (bull case); at $9.94, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 47% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -61% fair-value upside, at -29%, AUDC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF $9.28 $11.89 $14.98 80
Residual Income $4.74 $4.73 $4.16 76
Rev-Margin DCF $7.70 $10.55 $13.89 74
All 26 models by family
DCF Models
FCF DCF $9.28 $12.33 $16.18 38
Owner Earnings $3.95 $4.85 $5.98 31
5Y Revenue Exit $7.70 $10.46 $13.89 39
5Y EBITDA Exit $8.51 $11.98 $15.98 41
5Y P/E Exit $7.65 $10.36 $13.17 38
10Y Revenue Exit $8.20 $10.66 $13.82 36
10Y EBITDA Exit $8.75 $11.56 $15.19 37
10Y P/E Exit $8.28 $10.60 $13.35 35
Earnings-Based
Graham-Dodd $2.39 $7.74 $10.33 54
Lynch FV $1.72 $2.46 $3.20 50
PEG = 1.0 $1.72 $2.46 $3.20 46
EPV $4.38 $4.70 $4.96 59
Dividend Discount
Gordon GGM $2.99 $5.01 $6.50 70
DDM Multi-Stage $2.99 $4.57 $5.39 61
Multiples
P/E Multiple $5.28 $7.04 $8.80 63
P/S Multiple $4.49 $5.98 $7.48 58
P/B Multiple $4.49 $5.98 $7.48 55
EV/EBIT $9.19 $11.67 $14.15 53
EV/EBITDA $8.74 $11.07 $13.41 54
EV/Revenue $6.76 $8.91 $11.06 43
Asset-Based
NCAV (Graham) $3.36 $4.51 $6.73 50
Growth DCF
Growth DCF $9.28 $11.89 $14.98 80
Rev-Margin DCF $7.70 $10.55 $13.89 74
Economic Profit
Residual Income $4.74 $4.73 $4.16 76
ROIC Compounder $4.38 $4.70 $4.96 72
Growth Earnings
Growth-Adj P/E $4.45 $6.35 $8.26 68

Widest divergence: DCF Models ($10.60) versus Earnings-Based ($2.46). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $247M
Revenue growth (YoY) +2.9%
Net margin 2.8%
Return on equity 4.1%
Free cash flow $22.9M FY2025
P/E ratio 37.6
More key figures
Operating margin 5.4%
EPS (TTM) $0.2400
Dividend yield 4.3%
EPS growth (YoY) -46.2%
Net debt $23.8M FY2025

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 69 · Market factors (momentum, volatility) 52

Profitability 46
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 77
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 52
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

AudioCodes Ltd. provides advanced communications software, products, and productivity solutions for the digital workplace worldwide. The company offers solutions, products, and services for unified communications, contact centers, and hosted business services.

Full company description

AudioCodes Ltd. provides advanced communications software, products, and productivity solutions for the digital workplace worldwide. The company offers solutions, products, and services for unified communications, contact centers, and hosted business services. Its products include session border controllers, life cycle management solutions, VoIP network routing solutions, media gateways and servers, multi-service business routers, IP phones solutions, and value-added applications, as well as professional services. The company also offers One Voice Operations Center, a voice network management solution; Device Manager for administering business phones and meeting room solutions; AudioCodes Routing Manager for handling call routing in VoIP networks; and User Management Pack 365 simplifies user lifecycle and identity management across Microsoft Teams and Skype for Business deployments. In addition, it offers managed services; and AudioCodes Live Platform is a SaaS solution that enables service providers to offer their business customers a seamless migration to uCaaS solutions, such as Microsoft Teams and Zoom Phone. The company primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, network equipment providers, systems integrators, enterprises, carriers, and distributors in the telecommunications and networking industries. AudioCodes Ltd. was incorporated in 1992 and is based in Or Yehuda, Israel.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

AudioCodes Ltd reported revenue of $246M in FY2025 versus $249M in FY2021, a compound −0.3%/yr. Reported net income was $9.0M in FY2025, compounding −28.2%/yr from FY2021.

Growth Quality 62/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$246M
Latest YoY
+1.4%
Avg. growth/yr (3Y) 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.
−3.7%
Avg. growth/yr (5Y) 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.
+2.2%
Avg. growth/yr (27Y) 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.
+12.9%
Revenue −0.3%/yr
FY21 $249M
FY22 $275M
FY23 $244M
FY24 $242M
FY25 $246M
Net income −28.2%/yr
FY21 $33.8M
FY22 $28.5M
FY23 $8.8M
FY24 $15.3M
FY25 $9.0M

AUDC screens 29% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "AudioCodes Ltd Fair Value". https://www.fairvalue-calculator.com/stock/AUDC

Peer Group

Communication Equipment · 286 stocks

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.

Quality Score 70 · Top 25%
Fair Value upside −29% · Above median
Return on equity (TTM) 4% · Above median
Return on assets 3% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 5% · Above median
Revenue growth 3% · Below median
Dividend yield (TTM) 4.3% · Top 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 37.6× · Pricier than median
P/B 1.34× · Cheaper than median
P/S (TTM) 0.93× · Cheaper than median
P/FCF 10.0× · Pricier than median
EV/EBITDA 10.2× · Cheaper than median
PEG 0.83× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 15 · sector 30
PAST 16 · sector 15
HEALTH 100 · sector 98
DIVIDEND 86 · sector 25

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $119.25 $43.05 -64%
Zhongji Innolight Co 300308 ¥1,094 ¥171.09 -84%
Foxconn Industrial Internet Co 601138 ¥56.50 ¥28.65 -49%
Eoptolink Technology Inc 300502 ¥482.88 ¥155.05 -68%
Nokia Oyj NOK $11.25 $2.67 -76%
Motorola Solutions, Inc MSI $413.31 $190.43 -54%
Suzhou TFC Optical Communication Co 300394 ¥244.13 ¥32.04 -87%
Telefonaktiebolaget LM Ericsson (publ), ERIC $11.72 $15.96 +36%
Accton Technology Corporation 2345 2,090 TWD 846.28 TWD -60%
ZTE Corporation 000063 ¥40.00 ¥15.75 -61%

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Frequently asked questions

Is AudioCodes Ltd (AUDC) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of $7.04 versus a price of $9.94, about −29% (overvalued).
What is the fair value of AUDC?
Our model-based fair value for AudioCodes Ltd is $7.04 (as of Jul 14, 2026), built from audited fundamentals. The current price is $9.94.
What is the quality score of AUDC?
AudioCodes Ltd has a Quality Score of 70/100. 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 revenue of AudioCodes Ltd (AUDC)?
AudioCodes Ltd reported trailing-twelve-month revenue of about $247M (latest available figure, as of Jul 14, 2026).
What is the net profit margin of AUDC?
The net profit margin of AudioCodes Ltd is about 2.8%, meaning it keeps roughly 2.8% of revenue as net income. Based on the latest reported figures.
Does AudioCodes Ltd pay a dividend?
AudioCodes Ltd currently shows a dividend yield of about 4.28% relative to its recent price (as of Jul 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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