Stock fact sheet · data as of
AudioCodes Ltd. (AUDC): fair value, margin of safety and Wheel Score
Ticker symbol AUDC · Technology · Communication Equipment · Israel · Blend Income
Is AUDC undervalued?
At 8.09 (close of 5 Nov 2026), AUDC trades within a few percent of the GLS average fair value of 7.57 (6.8% above fair value). 9 models produced a value and they split 2 above the price to 7 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
There is a wide gap between Lynch (1.38) and 10 Cap (22.12). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for AUDC, so the nightly engine files it under Blend (value score 38, growth score 33, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for AUDC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 6.83 | -16% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 6.04 | -25% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 5.03 | -38% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 1.38 | -83% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.09 | -74% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 22.12 | +173% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 15.67 | +94% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 5.89 | -27% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 3.12 | -61% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.18 | -85% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 19.00 | +135% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
AudioCodes Ltd. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. On durability AUDC scores 5.9/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 3.7%, ROE 5.2%, ROA 2.8% - with debt at 0.40 times equity and a free-cash-flow yield of 11.3%.
The dividend yield is high at 4.94% (payout ratio 156%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Service 53%, Product 47% (fiscal year FY2025).
Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 3.7% |
|---|---|---|---|
| GLS Moat | 5.9 / 10 | ROE | 5.2% |
| Debt / equity | 0.40 | ROA | 2.8% |
| Free-cash-flow yield | 11.3% | Payout ratio | 156% |
| Institutions | 5 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 31: Weak
With a Wheel Score of 31 AudioCodes Ltd. sits in the Weak band. It fails filter 3, below fair value - trades 7% above our fair value; and filter 7, a premium worth selling - implied volatility 91% (over 80%); and filter 8, big enough - market cap $195M (under $1.0B); Value (weak) is its weakest part.
Implied volatility is 91%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is thin - 1,290 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 237k shares a day on a market cap of $195M, with a beta of 0.99; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 7% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 91% (over 80%) |
| 8 | Big enough | Fails | market cap $195M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 7% above fair value | |
| Premium | Fair | implied volatility 91% | |
| Moat | Fair | moat 5.9/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Weak | 243 contracts a day, 1,290 open interest | |
| Stability | Fair | beta 0.99, $195M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for AUDC in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Communication Equipment
The 12 companies below are the closest to AudioCodes Ltd. by market cap within the Communication Equipment industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SILC Silicom Ltd. | 31.76 | 11.02 | -188% | 10No options | $183M |
| CRNT Ceragon Networks Ltd. | 2.00 | 5.41 | +63% | 42Weak | $182M |
| BKTI BK Technologies Corporation | 66.97 | 120.69 | +45% | 31No options | $252M |
| AVNW Aviat Networks, Inc. | 19.90 | 8.75 | -127% | 26Weak | $256M |
| LTRX Lantronix, Inc. | 5.65 | 2.74 | -106% | 26Weak | $265M |
| KVHI KVH Industries, Inc. | 7.09 | 1.45 | -389% | 27Weak | $129M |
| OCC Optical Cable Corporation | 11.21 | 7.46 | -50% | 17No options | $99M |
| ADTN ADTRAN Holdings Inc. | 4.73 | 9.26 | +49% | 46Weak | $385M |
| CLFD Clearfield, Inc. | 32.88 | 13.71 | -140% | 25Weak | $447M |
| INSG Inseego Corp. | 4.83 | 0.5393 | -796% | 6Weak | $83M |
| AMPG AmpliTech Group, Inc. | 2.48 | - | - | 11Weak | $75M |
| GILT Gilat Satellite Networks Ltd. | 7.06 | 10.78 | +34% | 44Weak | $525M |
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Start free See the Sunday ScanQuestions about AUDC
Is AUDC undervalued right now?
Not meaningfully: at 8.09 the stock trades within a few percent of the GLS average fair value of 7.57 (6.8% above fair value, data as of 5 Nov 2026).
What is the Wheel Score of AUDC and what does it mean?
AUDC scores 31 out of 100 (Weak) - it fails Wheel Trade Filters 3, 7, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for AUDC?
7.57 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does AudioCodes Ltd. report earnings next?
No upcoming earnings date is recorded for AUDC in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does AUDC have listed options, and how liquid are they?
Yes. The nightly snapshot found 12 listed contracts with 1,290 open interest across all expiries and implied volatility of 91% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.