Radcom Ltd
NASDAQ:RDCM

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Radcom Ltd
NASDAQ:RDCM
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Price: 10.24 USD -3.67%
Market Cap: 160.4m USD
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DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Nov 5, 2024.

Estimated DCF Value of one RDCM stock is 13.62 USD. Compared to the current market price of 10.24 USD, the stock is Undervalued by 25%.

RDCM DCF Value
Base Case
13.62 USD
Undervaluation 25%
DCF Value
Price
Worst Case
Base Case
Best Case
13.62
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 13.62 USD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 59.3m USD. The present value of the terminal value is 154.1m USD. The total present value equals 213.4m USD.
Forecast Period
Years
Discount Rate
%
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Terminal Growth
%
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 213.4m USD
Equity Value 213.4m USD
/ Shares Outstanding 15.7m
RDCM DCF Value 13.62 USD
Undervalued by 25%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value
213.4m USD
/
Number of Shares
15.7m
=
DCF Value
13.62 USD

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
60.5m 94.8m
Net Income
12.3m 18.9m

See Also

Discover More

What is the DCF value of one RDCM stock?

Estimated DCF Value of one RDCM stock is 13.62 USD. Compared to the current market price of 10.24 USD, the stock is Undervalued by 25%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Radcom Ltd's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 213.4m USD.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 13.62 USD per share.

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