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RADCOM Ltd (RDCM) Fair Value & Analysis

Communication Services · US · Market cap $214M

RL RADCOM Ltd logo RADCOM Ltd RDCM · US
Price$10.10
Fair Value$10.68
Upside+5.7%
Quality64/100
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Healthy Growth
Solidly profitable · 17.2% net margin
Low debt · generates free cash flow
Ranks above peers (9/14)
Moderate moat 54/100
Evidence: High Range $8.32 – $13.35 Share as image

Fair value as of: Jul 18, 2026

From 24 valuation models · updated 24 days ago

Share price −28.8% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from $8.32 (bear) to $13.35 (bull), base $10.68. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 64/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$16.14 $7.58 Fair Value $10.68 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range $7.58 – $16.14 · fair‑value band $8.32 – $13.35 · the $10.10 price screens below the $10.68 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

RADCOM Ltd (RDCM) currently trades at $10.10, while our model-based Fair Value estimate is $10.68, implying the stock looks roughly 5.7% fairly valued today. The Quality Score stands at 64/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, RADCOM Ltd generated revenue of $73.5M at a net margin of 17.2%. Revenue grew 12.0% year over year. It earns a return on equity of 11.6%. The balance sheet holds a net cash position of $27.3M. Fundamentals as of Jul 18, 2026

Our scenario range runs from $8.32 (bear case) to $13.35 (bull case); at $10.10, the current price sits within 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 40% below its 52-week high, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at 6%, RDCM screens richer 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 $9.42 $13.11 $17.92 80
Rev-Margin DCF $7.55 $10.70 $14.70 74
ROIC Compounder $5.00 $5.38 $5.69 72
All 24 models by family
DCF Models
FCF DCF $9.53 $13.74 $19.62 38
Owner Earnings $8.49 $12.13 $17.22 31
5Y Revenue Exit $7.55 $10.67 $14.70 39
5Y EBITDA Exit $7.76 $11.10 $15.10 41
5Y P/E Exit $10.67 $16.96 $23.98 38
10Y Revenue Exit $8.18 $11.11 $15.23 36
10Y EBITDA Exit $8.41 $11.38 $15.50 37
10Y P/E Exit $10.04 $15.00 $21.72 35
Earnings-Based
Graham-Dodd $4.87 $21.01 $28.72 54
Lynch FV $5.39 $7.70 $10.01 50
PEG = 1.0 $5.39 $7.70 $10.01 46
EPV $5.00 $5.38 $5.69 59
Multiples
P/E Multiple $10.75 $14.33 $17.91 63
P/S Multiple $8.01 $10.68 $13.35 58
P/B Multiple $9.13 $12.18 $15.22 55
EV/EBIT $8.51 $10.74 $12.97 53
EV/EBITDA $7.05 $8.80 $10.55 54
EV/Revenue $6.33 $8.26 $10.19 43
Asset-Based
NCAV (Graham) $3.41 $4.57 $6.82 50
Growth DCF
Growth DCF $9.42 $13.11 $17.92 80
Rev-Margin DCF $7.55 $10.70 $14.70 74
Economic Profit
Residual Income $5.45 $5.87 $6.62 61
ROIC Compounder $5.00 $5.38 $5.69 72
Growth Earnings
Growth-Adj P/E $8.76 $12.51 $16.26 68

Widest divergence: Growth Earnings ($12.51) versus Asset-Based ($4.57). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $73.5M
Revenue growth (YoY) +12.0%
Net margin 17.2%
Return on equity 11.6%
Free cash flow $14.2M FY2025
P/E ratio 17.3
More key figures
Operating margin 11.7%
EPS (TTM) $0.7400
EPS growth (YoY) +20.0%
Net cash $27.3M FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 67 · Market factors (momentum, volatility) 25

Profitability 54
Margins and returns on capital today
Quality Growth 77
Are margins and returns improving?
Cashflow 76
Earnings quality: real cash, not paper profit
Fin. Strength 94
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 34
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

RADCOM Ltd. provides cloud-native and 5G-ready network intelligence solutions for communication service providers (CSPs).

Full company description

RADCOM Ltd. provides cloud-native and 5G-ready network intelligence solutions for communication service providers (CSPs). It offers RADCOM ACE, an automated assurance and analytics platform that provides cloud-native and containerized portfolio of network visibility, service assurance, and network insights; RADCOM AIM that provides AI-driven analytics to drive automated assurance with RADCOM ACE or legacy assurance solutions; RADCOM RAN for telecom operators to provide multiple solutions; and RADCOM NWDAF, an open, standards compliant, and vendor agnostic solution for closed-loop automation. The company also operates RADCOM NetTalk, a Generative AI. The company also provides solutions for mobile and fixed networks, such as 5G, Voice over New Radio, long term evolution (LTE), voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service. It sells its products directly to customers through executives and sales representatives, as well as through a network of distributors and resellers in North America, Asia Pacific, Latin America, Europe, and Israel. RADCOM Ltd. was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. The company was incorporated in 1985 and is headquartered in Tel Aviv, Israel.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

RADCOM Ltd reported revenue of $71.5M in FY2025 versus $40.3M in FY2021, a compound +15.4%/yr. Reported net income was $12.0M in FY2025.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$71.5M
Latest YoY
+17.2%
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.
+15.8%
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.
+13.7%
Avg. growth/yr (28Y) 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.
+4.5%
Revenue +15.4%/yr
FY21 $40.3M
FY22 $46.1M
FY23 $51.6M
FY24 $61.0M
FY25 $71.5M
Net income
FY21 −$5.3M
FY22 −$2.3M
FY23 $3.7M
FY24 $7.0M
FY25 $12.0M
Character of growth · EPS growth decomposed (2014-2025) +16.4 % p.a.
Revenue per share +4.1 pp

of which total revenue +10.1 pp · buybacks/dilution −6.0 pp

EBIT margin +7.2 pp
Tax rate +0.3 pp
Residual (interest, one-offs) +4.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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

Peer Group

Telecom Services · 250 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 64 · Top 25%
Fair Value upside +6% · Above median
Return on equity (TTM) 12% · Above median
Return on assets 4% · Above median
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 12% · Above median
Revenue growth 12% · Top 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 17.3× · Cheaper than median
P/B 1.87× · Pricier than median
P/S (TTM) 2.91× · Pricier than 75% of peers
P/FCF 15.0× · Pricier than 75% of peers
EV/EBITDA 18.9× · Pricier than 75% of peers
PEG 11.08× · Pricier than 75% of peers

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 41 · sector 29
FUTURE 60 · sector 15
PAST 46 · sector 28
HEALTH 100 · sector 88
DIVIDEND 0 · sector 73

Insider activity: 45/100

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 Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is RADCOM Ltd (RDCM) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of $10.68 versus a price of $10.10, about +6% (fairly valued).
What is the fair value of RDCM?
Our model-based fair value for RADCOM Ltd is $10.68 (as of Jul 18, 2026), built from audited fundamentals. The current price is $10.10.
What is the quality score of RDCM?
RADCOM Ltd has a Quality Score of 64/100. 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 RADCOM Ltd (RDCM)?
RADCOM Ltd reported trailing-twelve-month revenue of about $73.5M (latest available figure, as of Jul 18, 2026).
What is the net profit margin of RDCM?
The net profit margin of RADCOM Ltd is about 17.2%, meaning it keeps roughly 17.2% of revenue as net income. Based on the latest reported figures.

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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