Is RADCOM Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for RADCOM Ltd. has moved from very attractive to attractive, indicating a shift in perception. The company appears to be overvalued based on its current valuation metrics. The P/E ratio stands at 24, while the industry average is not provided, suggesting a premium valuation. Additionally, the EV to EBITDA ratio is 21.77, and the PEG ratio is notably low at 0.21, which typically indicates undervaluation, but in this context, it may reflect the high growth expectations already priced in.
In comparison to peers, RADCOM Ltd. has a P/E ratio of 24.41, which is lower than MoneyLion, Inc. at 107.79 but higher than CoreCard Corp. at 27.79. The EV to EBITDA ratio of 21.18 for RADCOM is also more favorable than MoneyLion's 11.10, indicating that while it is performing well, it is still priced at a premium compared to some peers. Over the past year, RADCOM has returned 28.49%, outperforming the S&P 500's 14.08%, but the longer-term 3-year and 5-year returns of 27.14% and 49.16% respectively lag behind the S&P 500's returns of 81.19% and 91.29%. This suggests that while RADCOM has had strong recent performance, its valuation may not be justified relative to its growth potential and peer performance.