MeritValue

RADCOM LTD

RDCMdata completeness 88%17 fiscal years on file
The thesis, from the filings

RADCOM LTD earns about 4% on invested capital, below its ~9% cost of capital, but has diluted owners by 19% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $2.29 and $40.64 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$40.3M1$46.1M2$51.6M2$61M2$71.5M3
Net income−$5.26M4−$2.26M5$3.71M6$6.97M6$12M6
Operating cash flow$2M7$6.02M8$4.71M9$11.4M9$14.6M9
Capital expenditure$437,00010$150,00011$232,00012$427,00012$384,00012
Free cash flow (derived)$1.57M7$5.87M8$4.47M9$11M9$14.2M9
Total debt—————
Cash & equivalents$11.9M13$9.53M14$10.9M15$19.2M16$30.5M16
Diluted shares14.1M14.5M15.3M16.2M16.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$67.78
your share of equity
Profit it earned you last year
$7.12
Free cash flow it threw off
$8.45
Debt you’d be carrying
—

10 shares is a claim on $67.78 of net worth that earned you $7.12 and generated $8.45 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
4% avg · 5y
FY21 -7%FY22 -3%FY23 5%FY24 9%FY25 14%

It earned about 4% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+19% shares · 5y

Share count is up 19% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $2.29 and $40.64 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$40.64
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$11M
DCF · Growth Exit 5Y
$23.04
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$11M
Earnings Power Value
$2.29
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.71M
  • growthAssumed0.0%
Graham Number
$10.41
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $23.04
The three cases
Bear0.0%$11.11
Base20.0%$23.04
Bull20.0%$23.04

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001213900-24-029061 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2022-12-31 · accession 0001013762-25-002444 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2025-12-31 · accession 0001213900-26-036862 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001213900-24-029061 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001013762-25-002444 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001213900-26-036862 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001213900-24-029061 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001013762-25-002444 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001213900-26-036862 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001213900-24-029061 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001013762-25-002444 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001213900-26-036862 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001213900-23-024293 (CashAndCashEquivalentsAtCarryingValue)
  14. 20-F · period ending 2022-12-31 · accession 0001213900-24-029061 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2023-12-31 · accession 0001013762-25-002444 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2024-12-31 · accession 0001213900-26-036862 (CashAndCashEquivalentsAtCarryingValue)