Latest Ratios: P/E Ratio 19.5x · EV/EBITDA 22.8x · ROE 11.4%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $232M | $220M | $200M | $123M | $159M | $184M | $153M | $117M | $101M | $245M | $192M |
| Enterprise Value | $205M | $193M | $184M | $114M | $152M | $174M | $142M | $117M | $39M | $223M | $149M |
| P/E Ratio → | 19.54 | 18.42 | 28.74 | 33.58 | — | — | — | — | — | 86.30 | 98.89 |
| P/S Ratio | 3.25 | 3.08 | 3.27 | 2.39 | 3.45 | 4.58 | 4.06 | 3.56 | 2.97 | 6.58 | 6.50 |
| P/B Ratio | 2.05 | 1.93 | 2.09 | 1.49 | 2.18 | 2.63 | 2.12 | 1.59 | 1.29 | 3.21 | 4.78 |
| P/FCF | — | — | 23.08 | 110.88 | — | — | 20.20 | — | 2.71 | — | 23.63 |
| P/OCF | — | — | 17.53 | 26.20 | 26.40 | 92.07 | — | 17.16 | — | — | 20.30 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.70 | 3.01 | 2.21 | 3.30 | 4.33 | 3.78 | 3.56 | 1.15 | 5.98 | 5.05 |
| EV / EBITDA | 22.81 | 21.48 | 48.82 | — | — | — | — | — | — | 71.07 | 105.74 |
| EV / EBIT | 24.68 | 15.33 | 24.87 | — | — | — | — | — | — | 85.78 | 132.67 |
| EV / FCF | — | — | 21.25 | 102.55 | — | — | 18.81 | — | 1.05 | — | 18.35 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.0% | 76.0% | 74.2% | 73.3% | 72.4% | 71.6% | 71.4% | 70.0% | 74.0% | 71.8% | 69.6% |
| Operating Margin | 11.6% | 11.6% | 5.1% | -1.3% | -8.9% | -13.6% | -12.2% | -23.7% | -10.2% | 7.0% | 3.8% |
| Net Profit Margin | 16.8% | 16.8% | 11.4% | 7.2% | -4.9% | -13.1% | -10.6% | -20.7% | -7.1% | 7.8% | 6.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.4% | 11.4% | 7.8% | 4.8% | -3.2% | -7.4% | -5.5% | -9.0% | -3.1% | 5.0% | 7.7% |
| ROA | 8.7% | 8.7% | 5.9% | 3.6% | -2.3% | -5.7% | -4.2% | -7.3% | -2.7% | 4.0% | 5.1% |
| ROIC | 7.5% | 7.5% | 3.0% | -0.7% | -4.9% | -6.8% | -5.1% | -13.0% | -7.4% | 7.6% | — |
| ROCE | 7.4% | 7.4% | 3.2% | -0.8% | -5.4% | -7.1% | -5.6% | -9.5% | -4.3% | 4.2% | 3.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.04 | 0.02 | 0.03 | 0.03 | 0.04 | 0.08 | — | — | — |
| Debt / EBITDA | 0.36 | 0.36 | 0.90 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.24 | -0.17 | -0.11 | -0.10 | -0.14 | -0.15 | 0.00 | -0.79 | -0.30 | -1.07 |
| Net Debt / EBITDA | -3.03 | -3.03 | -4.21 | — | — | — | — | — | — | -7.21 | -30.44 |
| Debt / FCF | — | — | -1.83 | -8.34 | — | — | -1.39 | — | -1.66 | — | -5.28 |
| Interest Coverage | — | — | 39.11 | -4.48 | -130.13 | -341.60 | -305.47 | -489.69 | -232.53 | 44.74 | 48.83 |
Net cash position: cash ($30M) exceeds total debt ($3M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 5.75 | 5.75 | 4.20 | 4.84 | 3.84 | 5.14 | 5.59 | 6.54 | 11.21 | 7.28 | 4.52 |
| Quick Ratio | 5.74 | 5.74 | 4.14 | 4.83 | 3.80 | 5.08 | 5.56 | 6.43 | 11.18 | 7.18 | 4.46 |
| Cash Ratio | 4.77 | 4.77 | 3.39 | 4.09 | 3.23 | 4.34 | 4.63 | 5.44 | 8.24 | 5.25 | 3.89 |
| Asset Turnover | — | 0.49 | 0.47 | 0.48 | 0.46 | 0.44 | 0.40 | 0.34 | 0.38 | 0.41 | 0.54 |
| Inventory Turnover | 54.07 | 54.07 | 9.45 | 55.99 | 15.99 | 12.27 | 19.92 | 7.31 | 35.32 | 8.75 | 14.42 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.1% | 5.4% | 3.5% | 3.0% | — | — | — | — | — | 1.2% | 1.0% |
| FCF Yield | — | — | 4.3% | 0.9% | — | — | 4.9% | — | 37.0% | — | 4.2% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $17M | $16M | $15M | $15M | $14M | $14M | $14M | $14M | $12M | $11M |
High Customer Concentration Risk
Based on current market data, RDCM trades at a P/E of 18.92, which appears to incorporate a significant discount relative to peers like Viavi Solutions, likely reflecting investor apprehension regarding the company's heavy reliance on a single Tier-1 North American carrier for its primary revenue streams.
The forward P/E of 11.29 suggests that the market is pricing in a conservative growth outlook, potentially discounting the long-term stickiness of the company's cloud-native software platform. Investors should monitor whether the current valuation multiple expands as the company demonstrates successful diversification beyond its anchor tenant.
As reported in financial statements, RDCM's ROIC has trended upward from -1.7% in 2023Q3 to 2.2% by 2025Q4, indicating that the company is beginning to generate positive returns on its invested capital as its cloud-native software architecture achieves greater operational leverage within the 5G market.
The historical trend of low or negative ROIC reflects the heavy R&D investment required to build the ACE platform, but the recent positive trajectory suggests that the business model is reaching an inflection point. Continued improvement in this metric will be critical to validating the company's long-term competitive advantage.
According to quarterly filings, RDCM's cash conversion cycle has fluctuated significantly, reaching 42 days in 2025Q4, which appears to be driven by the lumpy nature of milestone-based payments from its major telecommunications customers rather than structural inefficiencies in the company's internal software delivery processes.
The DSO of 92 days in 2025Q4 highlights the extended payment terms typical of Tier-1 carrier contracts, which warrants close monitoring for potential liquidity strain. While the asset-light model is efficient, the reliance on large, infrequent payments creates a mismatch between revenue recognition and actual cash collection.
Based on reported figures, RDCM maintains a current ratio of 5.75 as of 2025Q4, providing a substantial liquidity buffer that appears designed to insulate the company from the binary risks associated with its concentrated customer base and the inherent volatility of the telecommunications capital expenditure cycle.
The company's minimal debt-to-equity ratio of 0.03 underscores a conservative financial posture that prioritizes survival and operational continuity over aggressive leverage. This liquidity position provides the necessary runway to navigate potential regional instability or delays in major contract renewals without requiring external financing.
The P/E ratio is frequently misapplied to RDCM, as it obscures the impact of lumpy, milestone-based revenue recognition and significant stock-based compensation that can distort short-term earnings, making a focus on cash-based metrics or EV/Sales more appropriate for evaluating this specific software-centric business model.
Because RDCM's earnings are sensitive to the timing of large project completions, the P/E ratio often fails to capture the underlying health of the recurring revenue base. Analysts should instead prioritize evaluating the company's ability to convert software license growth into sustainable free cash flow.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying RDCM stock.
RADCOM Ltd.'s current P/E ratio is 19.5x. The historical average is 70.1x. This places it at the 11th percentile of its historical range.
RADCOM Ltd.'s current EV/EBITDA is 22.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 47.7x.
RADCOM Ltd.'s return on equity (ROE) is 11.4%. The historical average is -18.0%.
Based on historical data, RADCOM Ltd. is trading at a P/E of 19.5x. This is at the 11th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
RADCOM Ltd. has 76.0% gross margin and 11.6% operating margin. Operating margin between 10-20% is typical for established companies.
RADCOM Ltd.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.