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AudioCodesAUDC -3.77%71 Return-on-Tangible-Equity is 6.24% as of Mar. 2026, which is 56% below its 10-year median of 14.06. GuruFocus rates AUDC with a GF Score™ of 71/100 and a GF Value™ of $13.17 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,383 Hardware companies, AudioCodes ranks worse than 51.32% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. AudioCodes's annualized net income for the quarter that ended in Mar. 2026 was $7.8 Mil. AudioCodes's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $125.1 Mil. Therefore, AudioCodes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.24%.
The historical rank and industry rank for AudioCodes's Return-on-Tangible-Equity or its related term are showing as below:
AUDC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.03 Med: 14.06 Max: 24.26
Current: 5.03
During the past 13 years, AudioCodes's highest Return-on-Tangible-Equity was 24.26%. The lowest was 5.03%. And the median was 14.06%.
AUDC's Return-on-Tangible-Equity is ranked worse than 51.32% of 2383
companies
in the Hardware industry
Industry Median: 5.32
vs AUDC: 5.03
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
AudioCodes Return-on-Tangible-Equity Related Terms
AudioCodes Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AudioCodes's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AUDC vs CSCO, CIEN, MSI: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, AudioCodes's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AudioCodes Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, AudioCodes's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AudioCodes's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.24% mean?
AudioCodes (AUDC) has a Return-on-Tangible-Equity of 6.24% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AudioCodes and its competitors. This is 56% below median its historical median of 14.06. Over the past decade, AudioCodes' Return-on-Tangible-Equity has ranged from 5.03 to 24.26. According to the industry distribution chart, AudioCodes ranks #1223 out of 2383 companies in the Hardware industry, placing it in the top 51.3%.
Is AudioCodes' Return-on-Tangible-Equity too high?
AudioCodes' current Return-on-Tangible-Equity of 6.24% is 56% below median its 10-year median of 14.06. Over the past 10 years, this metric has ranged from a low of 5.03 to a high of 24.26. The Hardware industry median Return-on-Tangible-Equity is 5.32. AudioCodes' value of 6.24% is 17.3% above this industry median. Based on the distribution chart, AudioCodes ranks #1223 out of 2383 companies in the Hardware industry, which is below the industry midpoint. Overall, AudioCodes has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AudioCodes' Return-on-Tangible-Equity compare to CSCO and CIEN?
According to the Hardware industry distribution chart, AudioCodes ranks #1223 out of 2383 companies for Return-on-Tangible-Equity. This places AudioCodes in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.32. AudioCodes' value of 6.24% is 17.3% above this benchmark. Historically, AudioCodes' own Return-on-Tangible-Equity has ranged from 5.03 to 24.26 over the past decade. While the company's 10-year median is 14.06 vs. the industry median of 5.32, AudioCodes has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.32, based on 2,383 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AudioCodes's current Return-on-Tangible-Equity of 6.24% is 17.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AudioCodes and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AudioCodes's current Return-on-Tangible-Equity is 6.24%, which is 56% below median its own 10-year median of 14.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AudioCodes stock overvalued right now?
Based on GuruFocus' analysis, AudioCodes (AUDC) is currently considered Modestly Undervalued. The stock's GF Value™ is $13.17, compared to a current price of $9.50 — trading 27.9% below its estimated fair value. The current Return-on-Tangible-Equity is 6.24%, which is 56% below median its 10-year median of 14.06 and 17.3% above the Hardware industry median of 5.32. AudioCodes' overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For AudioCodes (AUDC), the current Return-on-Tangible-Equity is 6.24% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AudioCodes (AUDC) Overvalued in 2026?
Based on GuruFocus' analysis, AudioCodes stock appears to be undervalued.
The current stock price of $9.50 is trading 27.9% below its estimated GF Value™ of $13.17.
GuruFocus considers AudioCodes to be Modestly Undervalued.
Key valuation signals for AUDC:
Return-on-Tangible-Equity: 6.24% (56% below median its 10-year median of 14.06)
GF Value™: $13.17 vs. price of $9.50 (27.9% below fair value)
Industry Position: 17.3% above the Hardware median (#1223 of 2383)
No single metric tells the full story. See the AUDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AudioCodes Ltd provides voice communications solutions for enterprises, contact centers, and service providers, including voice infrastructure, cloud-based platforms, and Voice AI applications. Its AudioCodes Live Platform is a cloud-based service delivery platform that enables provisioning, management, and operation of voice and AI-based communication services, including PSTN connectivity and integration with platforms such as Microsoft Teams, Webex Calling, and Zoom Phone. The company's solutions are organized into three layers: voice infrastructure and devices, cloud-based platforms, and Voice AI applications for contact center and productivity use cases. It also offers management tools such as One Voice Operations Center (OVOC), Device Manager, and AudioCodes Routing Manager (ARM).
71GF Score
Get the complete analysis for AUDC
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