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. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 17, an EV to EBITDA of 10.48, and a PEG ratio of 0.28, which suggests that it may be undervalued relative to its growth prospects.
When compared to peers, AudioCodes Ltd. has a lower P/E ratio than Gilat Satellite Networks Ltd., which stands at 26.91, and a more favorable EV to EBITDA compared to Infinera Corp. at 325.09. Despite the fair valuation, the stock has underperformed significantly against the S&P 500, with a 3-year return of -52.12% compared to the index's 81.19%, highlighting potential concerns about its future performance.