Radcom Stock Valuation

RDCM -  USA Stock  

USD 10.74  0.09  0.85%

What is the enterprise value of Radcom? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Radcom, is its stock price multiplied by the total number of shares outstanding, calculating Radcom's enterprise value requires a different approach. It uses Radcom's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Radcom holds a recent Real Value of $14.81 per share. The prevailing price of the company is $10.74. At this time, the company appears to be undervalued. Our model determines the value of Radcom from analyzing the company fundamentals such as Return On Equity of (3.97) %, operating margin of (8.81) %, and Shares Outstanding of 14.1 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support acquiring undervalued entities and dropping overvalued entities since, at some point, asset prices and their ongoing real values will merge together.

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Radcom Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Radcom's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
10.74
28th of July 2021
Share
Please note that Radcom's price fluctuation is not too volatile at this time. Calculation of the real value of Radcom is based on 3 months time horizon. Increasing Radcom's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Radcom is useful when determining the fair value of the Radcom stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Radcom. Since Radcom is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Radcom Stock. However, Radcom's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
14.81
Real Value
16.58
Upside
Estimating the potential upside or downside of Radcom helps investors to forecast how Radcom stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Radcom more accurately as focusing exclusively on Radcom's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
0.280.280.28
Details
Hype
Prediction
LowEstimated ValueHigh
8.8310.6012.37
Details
Naive
Forecast
LowNext ValueHigh
8.6310.4012.17
Details
2 Analysts
Consensus
LowTarget PriceHigh
27.0027.0027.00
Details

Radcom Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Radcom's current stock value. Our valuation model uses many indicators to compare Radcom value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Radcom competition to find correlations between indicators driving Radcom's intrinsic value. More Info.
Radcom is currently regarded as top stock in price to earning category among related companies. It is rated third in price to book category among related companies fabricating about  0.08  of Price to Book per Price to Earning. The ratio of Price to Earning to Price to Book for Radcom is roughly  13.30 

About Radcom Valuation

The equity valuation mechanism determines the current worth of Radcom on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Radcom. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Radcom based exclusively on its fundamental and basic technical indicators. By analyzing Radcom's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Radcom's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Radcom. We calculate exposure to Radcom's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Radcom's related companies.
RADCOM Ltd. provides 5G ready cloud-native network intelligence and service assurance solutions for telecom operators or communication service providers . RADCOM Ltd. was founded in 1985 and is headquartered in Tel Aviv, Israel. Radcom operates under Telecom Services classification in the United States and is traded on NASDAQ Exchange. It employs 276 people.

Radcom Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Radcom does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio6.53
Revenue Growth9.80%
Enterprise Value To Ebitda-29.83
Enterprise Value To Revenue2.10
Additionally, take a look at Your Equity Center. Note that the Radcom information on this page should be used as a complementary analysis to other Radcom's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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When running Radcom price analysis, check to measure Radcom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Radcom is operating at the current time. Most of Radcom's value examination focuses on studying past and present price action to predict the probability of Radcom's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Radcom's price. Additionally, you may evaluate how the addition of Radcom to your portfolios can decrease your overall portfolio volatility.
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The market value of Radcom is measured differently than its book value, which is the value of Radcom that is recorded on the company's balance sheet. Investors also form their own opinion of Radcom's value that differs from its market value or its book value, called intrinsic value, which is Radcom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Radcom's market value can be influenced by many factors that don't directly affect Radcom underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Radcom's value and its price as these two are different measures arrived at by different means. Investors typically determine Radcom value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Radcom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.