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AudioCodes Ltd. (AUDC)

Company Dividend Discount ModelIndustry: Communication EquipmentSector: Technology

Valuation Snapshot

Stable Growth$7.66 - $15.11$10.59
Multi-Stage$10.90 - $11.93$11.40
Blended Fair Value$11.00
Current Price$9.82
Upside11.99%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.15%0.00%0.370.390.390.370.290.230.190.000.000.00
YoY Growth---4.41%-1.32%6.32%28.70%25.63%16.65%0.00%0.00%0.00%0.00%
Dividend Yield--3.91%3.02%2.59%1.44%1.06%0.95%1.37%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)13.83
(-) Cash Dividends Paid (M)11.47
(=) Cash Retained (M)2.35
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.771.731.04
Cash Retained (M)2.352.352.35
(-) Cash Required (M)-2.77-1.73-1.04
(=) Excess Retained (M)-0.410.631.32
(/) Shares Outstanding (M)29.5829.5829.58
(=) Excess Retained per Share-0.010.020.04
LTM Dividend per Share0.390.390.39
(+) Excess Retained per Share-0.010.020.04
(=) Adjusted Dividend0.370.410.43
WACC / Discount Rate6.84%6.84%6.84%
Growth Rate1.87%2.87%3.87%
Fair Value$7.66$10.59$15.11
Upside / Downside-21.99%7.85%53.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)13.8314.2314.6315.0515.4915.9316.41
Payout Ratio82.97%84.38%85.78%87.19%88.59%90.00%92.50%
Projected Dividends (M)11.4712.0012.5513.1313.7214.3415.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.84%6.84%6.84%
Growth Rate1.87%2.87%3.87%
Year 1 PV (M)11.1311.2311.34
Year 2 PV (M)10.7811.0011.21
Year 3 PV (M)10.4510.7611.08
Year 4 PV (M)10.1310.5310.94
Year 5 PV (M)9.8110.3010.81
PV of Terminal Value (M)270.04283.56297.61
Equity Value (M)322.33337.38353.00
Shares Outstanding (M)29.5829.5829.58
Fair Value$10.90$11.40$11.93
Upside / Downside10.96%16.14%21.51%

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