AudioCodes Ltd.

DB:AU1 Stock Report

Market Cap: €252.2m

AudioCodes Valuation

Is AU1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AU1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AU1 (€8.35) is trading below our estimate of fair value (€76.76)

Significantly Below Fair Value: AU1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AU1?

Key metric: As AU1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AU1. This is calculated by dividing AU1's market cap by their current earnings.
What is AU1's PE Ratio?
PE Ratio22.5x
EarningsUS$12.19m
Market CapUS$262.66m

Price to Earnings Ratio vs Peers

How does AU1's PE Ratio compare to its peers?

The above table shows the PE ratio for AU1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.3x
FEW Funkwerk
10.1xn/a€163.6m
CEK CeoTronics
32.9x25.1%€41.5m
S9I Stemmer Imaging
42.2x37.2%€344.5m
M7U Nynomic
12.2x17.5%€115.4m
AU1 AudioCodes
22.5x32.8%€262.7m

Price-To-Earnings vs Peers: AU1 is good value based on its Price-To-Earnings Ratio (22.5x) compared to the peer average (24.3x).

Price to Earnings Ratio vs Industry

How does AU1's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AU1 22.5xIndustry Avg. 30.5xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AU1 is good value based on its Price-To-Earnings Ratio (22.5x) compared to the Global Communications industry average (31.4x).

Price to Earnings Ratio vs Fair Ratio

What is AU1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AU1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.5x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: AU1 is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AU1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.35
€8.95
+7.2%
9.8%€10.19€8.34n/a3
Nov ’25€8.45
€10.77
+27.5%
14.6%€12.93€9.24n/a3
Oct ’25€8.70
€10.77
+23.8%
14.6%€12.93€9.24n/a3
Sep ’25€9.70
€10.77
+11.1%
14.6%€12.93€9.24n/a3
Aug ’25€10.40
€10.77
+3.6%
14.6%€12.93€9.24n/a3
Jul ’25€9.50
€10.51
+10.6%
16.6%€12.98€9.27n/a3
Jun ’25€9.20
€10.51
+14.2%
16.6%€12.98€9.27n/a3
May ’25€10.30
€13.23
+28.4%
18.3%€16.61€11.08n/a3
Apr ’25€11.80
€14.16
+20.0%
18.2%€16.71€11.14n/a4
Mar ’25€12.40
€14.16
+14.2%
18.2%€16.71€11.14n/a4
Feb ’25€10.20
€13.18
+29.2%
26.2%€17.89€9.42n/a4
Jan ’25€10.80
€13.18
+22.1%
26.2%€17.89€9.42n/a4
Dec ’24€10.20
€13.18
+29.2%
26.2%€17.89€9.42n/a4
Nov ’24€7.30
€12.59
+72.5%
28.8%€17.40€8.24€8.454
Oct ’24€9.35
€12.59
+34.7%
28.8%€17.40€8.24€8.704
Sep ’24€9.40
€12.59
+33.9%
28.8%€17.40€8.24€9.704
Aug ’24€9.00
€11.29
+25.4%
34.8%€17.30€7.28€10.405
Jul ’24€8.25
€11.44
+38.7%
34.8%€17.53€7.38€9.505
Jun ’24€8.00
€11.44
+43.0%
34.8%€17.53€7.38€9.205
May ’24€9.05
€16.11
+78.0%
26.1%€20.93€8.65€10.305
Apr ’24€13.49
€20.16
+49.5%
18.2%€26.14€15.87€11.805
Mar ’24€15.34
€20.16
+31.4%
18.2%€26.14€15.87€12.405
Feb ’24€17.84
€23.99
+34.5%
20.9%€32.81€18.46€10.205
Jan ’24€16.39
€23.99
+46.4%
20.9%€32.81€18.46€10.805
Dec ’23€18.20
€23.99
+31.8%
20.9%€32.81€18.46€10.205
Nov ’23€19.94
€25.96
+30.2%
15.6%€33.43€21.63€7.305

Analyst Forecast: Target price is less than 20% higher than the current share price.

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