Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

AudioCodes Ltd. (AUDC)

Company Dividend Discount ModelIndustry: Communication EquipmentSector: Technology

Valuation Snapshot

Stable Growth$5.97 - $10.25$7.82
Multi-Stage$7.96 - $8.70$8.32
Blended Fair Value$8.07
Current Price$9.82
Upside-17.81%
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 Rate8.25%8.25%8.25%
Growth Rate1.87%2.87%3.87%
Fair Value$5.97$7.82$10.25
Upside / Downside-39.20%-20.36%4.41%

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 Rate8.25%8.25%8.25%
Growth Rate1.87%2.87%3.87%
Year 1 PV (M)10.9811.0911.20
Year 2 PV (M)10.5110.7110.92
Year 3 PV (M)10.0510.3510.65
Year 4 PV (M)9.619.9910.39
Year 5 PV (M)9.199.6510.12
PV of Terminal Value (M)185.15194.42204.05
Equity Value (M)235.48246.20257.33
Shares Outstanding (M)29.5829.5829.58
Fair Value$7.96$8.32$8.70
Upside / Downside-18.94%-15.25%-11.42%

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