Is AudioCodes Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for AudioCodes Ltd. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 17, an EV to EBITDA of 10.48, and a PEG ratio of 0.28, which suggests that the company may be undervalued relative to its growth prospects.
In comparison to its peers, AudioCodes Ltd. has a P/E ratio that is lower than Gilat Satellite Networks Ltd. at 26.91, but higher than Infinera Corp. which has a negative P/E ratio. This places AudioCodes in a competitive position within the telecom equipment industry. Notably, the company's stock has underperformed relative to the S&P 500, with a year-to-date return of -6.16% compared to the S&P 500's 13.30%, reinforcing the notion that it may be fairly valued given the current market conditions.