Amdocs Stock Valuation

DOX
 Stock
  

USD 88.95  1.36  1.55%   

Do you wonder what the value of Amdocs Limited is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Amdocs, is its stock price multiplied by the total number of shares outstanding, calculating Amdocs' enterprise value requires a different approach. It uses Amdocs' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to drop to about 730.2 M in 2022. Enterprise Value is likely to drop to about 10.1 B in 2022.
Amdocs Limited shows a prevailing Real Value of $94.76 per share. The current price of the firm is $88.95. At this time, the firm appears to be undervalued. Our model approximates the value of Amdocs Limited from analyzing the firm fundamentals such as profit margin of 12.10 %, and Return On Equity of 15.02 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Amdocs Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Amdocs's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Amdocs Most Recent Valuation Data

Price Book
3.07
EPS Estimate Next Quarter
1.25
Price Sales
2.43
Forward Annual Dividend Yield
0.0178
EBITDA
858.8 M
Dividend Share
1.51
Ex Dividend Date
2022-09-29
Undervalued
Today 88.95
Please note that Amdocs' price fluctuation is very steady at this time. Calculation of the real value of Amdocs Limited is based on 3 months time horizon. Increasing Amdocs' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Amdocs Limited is useful when determining the fair value of the Amdocs stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Amdocs. Since Amdocs is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Amdocs Stock. However, Amdocs' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
94.76
Real Value
96.10
Upside
Estimating the potential upside or downside of Amdocs Limited helps investors to forecast how Amdocs stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Amdocs more accurately as focusing exclusively on Amdocs' fundamentals will not take into account other important factors:
Earnings
Estimates (3)
LowProjected EPSHigh
4.734.784.89
Details
Hype
Prediction
LowEstimated ValueHigh
87.3488.6890.02
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.061.081.10
Details
3 Analysts
Consensus
LowTarget PriceHigh
78.0088.2099.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Amdocs' intrinsic value based on its ongoing forecasts of Amdocs' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Amdocs' closest peers. When choosing an evaluation method for Amdocs Limited, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Amdocs Valuation Drivers Correlation

Many accounts on the financial statements of Amdocs Limited are highly interrelated and sometimes correlated. Consequently, when conducting Amdocs's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Amdocs
Click cells to compare fundamentals

Amdocs Valuation Trend

Knowing Amdocs' actual value is paramount for traders to make sound investment determinations. Amdocs' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Amdocs' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Amdocs' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Amdocs Market Cap

Amdocs Limited is one of the top stocks in market capitalization category among related companies. Market capitalization of Software—Infrastructure industry is currently estimated at about 21.38 Billion. Amdocs totals roughly 10.69 Billion in market capitalization claiming about 50% of equities listed under Software—Infrastructure industry.
Capitalization  Workforce  Total debt  Valuation  Revenue

Amdocs Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Amdocs's current stock value. Our valuation model uses many indicators to compare Amdocs value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Amdocs competition to find correlations between indicators driving Amdocs's intrinsic value. More Info.
Amdocs Limited is one of the top stocks in price to earning category among related companies. It is one of the top stocks in five year return category among related companies reporting about  0.09  of Five Year Return per Price to Earning. The ratio of Price to Earning to Five Year Return for Amdocs Limited is roughly  11.65 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Amdocs by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Amdocs' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Amdocs' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Amdocs' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Amdocs and how it compares across the competition.

About Amdocs Valuation

The stock valuation mechanism determines the current worth of Amdocs Limited on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Amdocs Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Amdocs Limited based exclusively on its fundamental and basic technical indicators. By analyzing Amdocs's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Amdocs's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Amdocs. We calculate exposure to Amdocs's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Amdocs's related companies.
Fiscal Year End
September
Industry
Software-Infrastructure
Concentration
IT Consulting & Other Services
Full Time Employees
31 K
Service Category
IT Services
Last ReportedProjected for 2022
Gross Profit1.7 B1.7 B
Profit Margin 0.19  0.17 
Amdocs Limited, through its subsidiaries, provides software and services worldwide. Amdocs Limited was founded in 1988 and is headquartered in Saint Louis, Missouri. Amdocs operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 31000 people.

Amdocs Quarterly Enterprise Value

10.26 Billion

Amdocs' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Amdocs' value is low or high relative to the company's performance and growth projections. Determining the market value of Amdocs can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Amdocs represents a small ownership stake in the entity. As a stockholder of Amdocs, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Amdocs Dividends Analysis For Valuation

Payment of Dividends and Other Cash Distributions is likely to drop to about (172.3 M) in 2022. Dividend Yield is likely to drop to 0.0197 in 2022. Price to Earnings Ratio is likely to rise to 18.95 in 2022, whereas Accumulated Retained Earnings Deficit are likely to drop slightly above 5.9 B in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-159.7 M-172.3 M
Dividend Yield 0.0218  0.0197 
Dividends per Basic Common Share 1.62  1.33 
There are various types of dividends Amdocs can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Amdocs shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Amdocs Limited directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Amdocs pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Amdocs by the value of the dividends paid out.

Amdocs Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Amdocs does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.42
Earnings Quarterly Growth-12.10%
Revenue Growth8.80%
Payout Ratio34.55%
Enterprise Value To Ebitda12.48
Earnings Growth-8.90%
Enterprise Value To Revenue2.38

Amdocs Current Valuation Indicators

Valuation refers to the process of determining the present value of Amdocs Limited and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Amdocs we look at many different elements of the entity such as Amdocs's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Amdocs' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Amdocs' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Amdocs, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Amdocs' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Amdocs' worth.
Continue to Investing Opportunities. Note that the Amdocs Limited information on this page should be used as a complementary analysis to other Amdocs' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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When running Amdocs Limited price analysis, check to measure Amdocs' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Amdocs is operating at the current time. Most of Amdocs' value examination focuses on studying past and present price action to predict the probability of Amdocs' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Amdocs' price. Additionally, you may evaluate how the addition of Amdocs to your portfolios can decrease your overall portfolio volatility.
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Is Amdocs' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amdocs. If investors know Amdocs will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amdocs listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.089
Market Capitalization
10.9 B
Quarterly Revenue Growth YOY
0.088
Return On Assets
0.0605
Return On Equity
0.15
The market value of Amdocs Limited is measured differently than its book value, which is the value of Amdocs that is recorded on the company's balance sheet. Investors also form their own opinion of Amdocs' value that differs from its market value or its book value, called intrinsic value, which is Amdocs' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amdocs' market value can be influenced by many factors that don't directly affect Amdocs' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amdocs' value and its price as these two are different measures arrived at by different means. Investors typically determine Amdocs value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amdocs' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.