Is AudioCodes Ltd. overvalued or undervalued?

As of 17 July 2025, the valuation grade for AudioCodes Ltd. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 17, a Price to Book Value of 1.56, and an EV to EBITDA of 10.48. In comparison, peers such as Gilat Satellite Networks Ltd. have a higher P/E of 26.91 and an EV to EBITDA of 16.43, indicating that AudioCodes is positioned more conservatively within its industry.
Despite the fair valuation, AudioCodes has underperformed relative to the S&P 500 over multiple periods, with a 1-year return of 10.33% compared to the index's 17.14%, and a staggering 3-year decline of 54.01% versus the S&P 500's gain of 70.41%. This performance suggests that while the stock may be fairly valued, it faces significant challenges in regaining investor confidence.