Latest Ratios: P/E Ratio 31.4x · EV/EBITDA 15.6x · ROE 4.9%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $261M | $253M | $298M | $381M | $581M | $1.2B | $907M | $791M | $299M | $237M | $227M |
| Enterprise Value | $284M | $277M | $276M | $390M | $571M | $1.1B | $896M | $762M | $273M | $221M | $215M |
| P/E Ratio → | 31.35 | 28.16 | 19.48 | 43.11 | 20.33 | 34.74 | 33.19 | 197.62 | 21.96 | 56.62 | 14.11 |
| P/S Ratio | 1.06 | 1.03 | 1.23 | 1.56 | 2.11 | 4.72 | 4.11 | 3.95 | 1.69 | 1.51 | 1.56 |
| P/B Ratio | 1.64 | 1.48 | 1.56 | 2.03 | 3.06 | 5.72 | 4.32 | 8.56 | 3.16 | 2.56 | 2.09 |
| P/FCF | 11.38 | 11.05 | 27.20 | 42.70 | 85.58 | 25.47 | 24.54 | 37.29 | 12.32 | 14.62 | 13.47 |
| P/OCF | 8.87 | 8.62 | 8.47 | 25.60 | 70.21 | 24.84 | 23.57 | 34.15 | 11.67 | 13.33 | 12.39 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.13 | 1.14 | 1.59 | 2.07 | 4.48 | 4.06 | 3.80 | 1.55 | 1.41 | 1.48 |
| EV / EBITDA | 15.56 | 15.15 | 13.10 | 22.90 | 16.63 | 26.60 | 22.05 | — | 14.64 | 18.31 | 20.18 |
| EV / EBIT | 20.26 | 19.72 | 16.06 | 24.45 | 15.69 | 26.63 | 24.01 | — | 16.21 | 22.27 | 27.34 |
| EV / FCF | — | 12.09 | 25.17 | 43.66 | 83.99 | 24.17 | 24.24 | 35.90 | 11.27 | 13.67 | 12.74 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.0% | 65.0% | 65.3% | 64.8% | 65.0% | 68.7% | 67.9% | 47.4% | 62.8% | 62.4% | 60.7% |
| Operating Margin | 5.7% | 5.7% | 7.1% | 5.9% | 11.4% | 15.9% | 17.4% | -4.8% | 9.3% | 6.2% | 5.3% |
| Net Profit Margin | 3.6% | 3.6% | 6.3% | 3.6% | 10.3% | 13.6% | 12.3% | 2.0% | 7.7% | 2.6% | 11.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.9% | 4.9% | 8.1% | 4.6% | 14.4% | 16.3% | 18.0% | 4.3% | 14.4% | 4.0% | 14.4% |
| ROA | 2.7% | 2.7% | 4.5% | 2.7% | 8.5% | 9.5% | 9.0% | 1.9% | 7.8% | 2.3% | 8.6% |
| ROIC | 5.8% | 5.8% | 7.0% | 5.8% | 14.5% | 17.2% | 22.0% | -10.8% | 16.8% | 8.4% | 5.6% |
| ROCE | 5.6% | 5.6% | 6.7% | 6.0% | 13.0% | 15.3% | 18.2% | -6.8% | 13.1% | 7.2% | 5.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.40 | 0.40 | 0.19 | 0.21 | 0.07 | 0.10 | 0.14 | 0.38 | 0.07 | 0.09 | 0.11 |
| Debt / EBITDA | 3.79 | 3.79 | 1.73 | 2.31 | 0.40 | 0.47 | 0.73 | — | 0.33 | 0.72 | 1.12 |
| Net Debt / Equity | — | 0.14 | -0.12 | 0.05 | -0.06 | -0.29 | -0.05 | -0.32 | -0.27 | -0.17 | -0.11 |
| Net Debt / EBITDA | 1.30 | 1.30 | -1.06 | 0.50 | -0.32 | -1.43 | -0.27 | — | -1.36 | -1.28 | -1.16 |
| Debt / FCF | — | 1.04 | -2.03 | 0.95 | -1.59 | -1.30 | -0.30 | -1.39 | -1.04 | -0.96 | -0.74 |
| Interest Coverage | 30.45 | 30.45 | 58.08 | 4.92 | 101.62 | 18.54 | 37.30 | -17.86 | 19.06 | 17.52 | 14.41 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.21 | 2.21 | 2.09 | 1.69 | 1.59 | 1.75 | 2.15 | 1.53 | 2.12 | 1.71 | 1.78 |
| Quick Ratio | 1.94 | 1.94 | 1.69 | 1.17 | 1.20 | 1.50 | 1.84 | 1.20 | 1.67 | 1.34 | 1.42 |
| Cash Ratio | 0.89 | 0.89 | 0.80 | 0.45 | 0.50 | 0.84 | 1.33 | 0.76 | 0.99 | 0.69 | 0.70 |
| Asset Turnover | — | 0.76 | 0.72 | 0.72 | 0.85 | 0.71 | 0.62 | 0.82 | 1.00 | 0.92 | 0.78 |
| Inventory Turnover | 3.90 | 3.90 | 2.67 | 1.96 | 2.65 | 3.25 | 2.43 | 3.73 | 2.82 | 3.56 | 3.50 |
| Days Sales Outstanding | — | 100.10 | 84.43 | 76.36 | 74.86 | 85.27 | 57.07 | 60.37 | 58.33 | 62.30 | 72.27 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.9% | 4.3% | 3.7% | 3.0% | 2.0% | 0.9% | 0.9% | 0.8% | 1.9% | — | — |
| Payout Ratio | 122.1% | 122.1% | 71.2% | 129.8% | 40.6% | 32.2% | 31.0% | 169.0% | 42.7% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 3.6% | 5.1% | 2.3% | 4.9% | 2.9% | 3.0% | 0.5% | 4.6% | 1.8% | 7.1% |
| FCF Yield | 8.8% | 9.0% | 3.7% | 2.3% | 1.2% | 3.9% | 4.1% | 2.7% | 8.1% | 6.8% | 7.4% |
| Buyback Yield | 11.7% | 12.1% | 4.8% | 4.8% | 6.6% | 3.6% | 0.0% | 1.0% | 4.8% | 10.8% | 12.9% |
| Total Shareholder Yield | 15.6% | 16.4% | 8.5% | 7.8% | 8.5% | 4.5% | 0.9% | 1.9% | 6.7% | 10.8% | 12.9% |
| Shares Outstanding | — | $29M | $31M | $32M | $33M | $34M | $33M | $31M | $30M | $32M | $36M |
Geopolitical and transition execution
According to recent market data, AUDC trades at a forward P/E of 15.39, which appears to discount the company's lack of top-line momentum while potentially failing to fully account for the long-term margin expansion potential inherent in its ongoing transition toward a recurring subscription-based revenue model.
The current P/S multiple of 1.02 suggests that investors are pricing the firm as a legacy hardware vendor rather than a high-growth software player. This valuation warrants caution, as the market may be waiting for definitive evidence of successful VoiceAI scaling before assigning a premium multiple to the company's recurring revenue streams.
Based on reported financial figures, the company's ROIC has hovered between 1.2% and 2.8% over the last ten quarters, indicating that AudioCodes is struggling to generate returns on invested capital that meaningfully exceed its cost of capital during this period of strategic business model transformation.
The persistent low ROIC suggests that the company's heavy investment in R&D and infrastructure is not yet yielding the expected efficiency gains. Investors should monitor whether the shift toward high-margin software services can eventually drive a sustained improvement in capital returns or if the business remains structurally tethered to low-return hardware cycles.
As reported in recent SEC filings, the company's cash conversion cycle has remained elevated, peaking at 235 days in 2023Q4, which suggests that AudioCodes faces significant challenges in optimizing its working capital efficiency while managing the transition from transactional hardware sales to a recurring service-based model.
The high days inventory outstanding, which reached 193 days in late 2023, indicates a potential risk of inventory obsolescence as the market shifts toward software-defined solutions. This inefficiency ties up significant cash, limiting the company's ability to deploy capital toward more accretive growth opportunities like VoiceAI acquisitions.
Based on an analysis of the company's financial structure, the most commonly misapplied metric is headline revenue growth, which obscures the underlying shift toward high-margin recurring services that are currently being masked by the intentional decline in lower-margin, transactional hardware sales across the enterprise segment.
Analysts should instead focus on the growth of 'AudioCodes Live' bookings and deferred revenue balances to gauge the true health of the business. Relying on top-line revenue growth as a primary indicator of success may lead to an overly pessimistic view of the company's strategic progress and long-term earning power.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying AUDC stock.
AudioCodes Ltd.'s current P/E ratio is 31.4x. The historical average is 54.7x. This places it at the 44th percentile of its historical range.
AudioCodes Ltd.'s current EV/EBITDA is 15.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 29.6x.
AudioCodes Ltd.'s return on equity (ROE) is 4.9%. The historical average is 3.4%.
Based on historical data, AudioCodes Ltd. is trading at a P/E of 31.4x. This is at the 44th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AudioCodes Ltd.'s current dividend yield is 3.88% with a payout ratio of 122.1%.
AudioCodes Ltd. has 65.0% gross margin and 5.7% operating margin.
AudioCodes Ltd.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.