Radcom Valuation
| RDCM Stock | USD 11.82 0.23 1.98% |
At this time, the company appears to be undervalued. Radcom holds a recent Real Value of $13.28 per share. The prevailing price of the company is $11.82. Our model determines the value of Radcom from analyzing the company fundamentals such as Shares Outstanding of 15.88 M, return on equity of 0.0782, and Operating Margin of 0.08 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Radcom's valuation include:
Price Book 1.9704 | Enterprise Value | Enterprise Value Ebitda 31.5033 | Price Sales 3.077 | Trailing PE 27.4884 |
Undervalued
Today
Please note that Radcom's price fluctuation is somewhat reliable 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 11.82 | Real 13.28 | Target 16.0 | Hype 11.79 | Naive 12.48 |
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 |
|
Radcom Valuation Trend
Knowing Radcom's actual value is paramount for traders when making sound investment determinations. Using both Radcom's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Radcom Total Value Analysis
Radcom is at this time forecasted to have valuation of 97.25 M with market capitalization of 187.72 M, debt of 1.62 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 |
97.25 M | 187.72 M | 1.62 M | 73.06 M |
Radcom Investor Information
About 20.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.97. 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 doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in April.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 47.99 percent. This suggests that the Company is making $0.48 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 Ownership Allocation
Radcom owns a total of 15.88 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 51.6 M. Net Income was 3.71 M with profit before overhead, payroll, taxes, and interest of 45.26 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 | 43.5 M | 45.7 M | |
| Pretax Profit Margin | 0.07 | 0.07 | |
| Operating Profit Margin | (0.01) | (0.01) | |
| Net Profit Margin | 0.06 | 0.07 | |
| Gross Profit Margin | 0.66 | 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 | 15.3 M | |
| Quarterly Earnings Growth Y O Y | -0.16 |
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 main economic indicators. To learn how to invest in Radcom Stock, please use our How to Invest in Radcom guide.You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Radcom. If investors know Radcom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Radcom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.16) | Earnings Share 0.43 | Revenue Per Share | Quarterly Revenue Growth 0.161 | Return On Assets |
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's underlying business (such as a 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 if Radcom is a good investment 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.