Radcom Valuation
| RDCM Stock | USD 12.47 0.54 4.53% |
At this time, the company appears to be undervalued. Radcom holds a recent Real Value of $15.35 per share. The prevailing price of the company is $12.47. Our model determines the value of Radcom from analyzing the company fundamentals such as Shares Outstanding of 16.41 M, return on equity of 0.11, and Operating Margin of 0.13 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Radcom's valuation include:
Price Book 1.795 | Enterprise Value | Enterprise Value Ebitda 13.3195 | Price Sales 2.9692 | Trailing PE 19.4844 |
Undervalued
Today
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.
The fair value of the Radcom stock is 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. | Historical | Market 12.47 | Real 15.35 | Target 18.0 | Hype 12.5 | Naive 12.04 |
The intrinsic value of Radcom's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Radcom's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Radcom's intrinsic value based on its ongoing forecasts of Radcom's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Radcom's closest peers.
Radcom Cash |
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Radcom Total Value Analysis
Radcom is at this time forecasted to have valuation of 92.26 M with market capitalization of 204.58 M, debt of 3.4 M, and cash on hands of 73.06 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Radcom fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
92.26 M | 204.58 M | 3.4 M | 73.06 M |
Radcom Investor Information
About 15.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.8. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Radcom had not issued any dividends in recent years. The entity had 1:4 split on the 16th of June 2008. Radcom is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.Radcom Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Radcom has an asset utilization ratio of 46.72 percent. This suggests that the Company is making $0.47 for each dollar of assets. An increasing asset utilization means that Radcom is more efficient with each dollar of assets it utilizes for everyday operations.Radcom Profitability Analysis
Taking into consideration Radcom's profitability measurements, Radcom is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in March. Profitability indicators assess Radcom's ability to earn profits and add value for shareholders.Net Income | First Reported 1997-03-31 | Previous Quarter 2.4 M | Current Value 3.5 M | Quarterly Volatility 1.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.54 | 0.67 |
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For Radcom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Radcom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Radcom utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Radcom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Radcom over time as well as its relative position and ranking within its peers.
Radcom Earnings per Share Projection vs Actual
By analyzing Radcom's earnings estimates, investors can diagnose different trends across Radcom's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Radcom is based on EPS before non-recurring items and includes expenses related to employee stock options.Radcom Ownership Allocation
Radcom owns a total of 16.41 Million outstanding shares. Over half of Radcom's outstanding shares are owned by third-party entities. These third-party entities are typically referred to as corporate investors that secure positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Radcom Profitability Analysis
The company reported the previous year's revenue of 61.01 M. Net Income was 6.97 M with profit before overhead, payroll, taxes, and interest of 52.32 M.About Radcom Valuation
We use absolute and 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 their related drivers, we attempt to find the most accurate representation of Radcom's intrinsic value. 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, and relevant financial multiples and ratios and then compare them to those of Radcom's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 52.1 M | 54.7 M | |
| Pretax Profit Margin | 0.12 | 0.11 | |
| Operating Profit Margin | 0.05 | 0.05 | |
| Net Profit Margin | 0.10 | 0.11 | |
| Gross Profit Margin | 0.67 | 0.54 |
Radcom Growth Indicators
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.
| Common Stock Shares Outstanding | 16.2 M | |
| Quarterly Earnings Growth Y O Y | 0.5 |
Radcom Current Valuation Indicators
Radcom's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Radcom's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Radcom, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Radcom's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Radcom's worth.When determining whether Radcom is a strong investment it is important to analyze Radcom's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Radcom's future performance. For an informed investment choice regarding Radcom Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Radcom. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in private. To learn how to invest in Radcom Stock, please use our How to Invest in Radcom guide.You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Will Communications Equipment sector continue expanding? Could Radcom diversify its offerings? Factors like these will boost the valuation of Radcom. Anticipated expansion of Radcom directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Radcom data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.5 | Earnings Share 0.64 | Revenue Per Share | Quarterly Revenue Growth 0.162 | Return On Assets |
Understanding Radcom requires distinguishing between market price and book value, where the latter reflects Radcom's accounting equity. The concept of intrinsic value - what Radcom's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Radcom's price substantially above or below its fundamental value.
It's important to distinguish between Radcom's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Radcom should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, Radcom's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.