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DOX

Amdocs Ltd – Custom Computer Programming Services
Amdocs' purpose is to enrich lives and progress society, using creativity and technology to build a better connected world. Amdocs and its 26,000 employees partner with the leading players in the communications and media industry, enabling next-generation experiences in 85 countries. Xilinx, Inc. Its cloud-native, open and dynamic portfolio of digital solutions, platforms and services brings greater choice, faster time to market and flexibility, to better meet the evolving needs of our customers as they drive growth, transform and take their business to the cloud. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.2 billion in fiscal 2020.
Analysis Results
Intrinsic Value $122.55
Latest Price $92.82
Relative Value 24% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 4.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 624 587
2024 650 575
2025 677 563
2026 705 552
2027 734 540
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 17300 million. This corresponds to a present value of 12000 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2820 million. Adding in the terminal value gives a total present value of 14800 million.

There are presently 121.0 million outstanding shares, so the intrinsic value per share is 122.55.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,003,147,000
Current Cash 817,980,000
Current Liabilities 1,252,680,000
Current Debt 0
Non-Cash Working Capital (NCWC) -67,513,000
Change in NCWC 134,444,000
EBIT 664,797,000
Tax Provision 98,905,000
Depreciation and Amortization 224,535,000
Capital Expenditure -227,219,000
Unlevered Free Cash Flow 695,151,788
Current Assets 2,067,499,000
Current Cash 965,591,000
Current Liabilities 1,303,865,000
Current Debt 0
Non-Cash Working Capital (NCWC) -201,957,000
Change in NCWC -176,394,000
EBIT 598,693,000
Tax Provision 125,932,000
Depreciation and Amortization 208,830,000
Capital Expenditure -210,438,000
Unlevered Free Cash Flow 328,103,438
Current Assets 2,074,577,000
Current Cash 983,940,000
Current Liabilities 1,216,200,000
Current Debt 100,000,000
Non-Cash Working Capital (NCWC) -25,563,000
Change in NCWC -21,575,000
EBIT 594,758,000
Tax Provision 85,482,000
Depreciation and Amortization 198,409,000
Capital Expenditure -205,510,000
Unlevered Free Cash Flow 478,924,129
Current Assets 1,675,574,000
Current Cash 471,632,000
Current Liabilities 1,207,930,000
Current Debt 0
Non-Cash Working Capital (NCWC) -3,988,000
Change in NCWC 89,468,000
EBIT 569,746,000
Tax Provision 88,441,000
Depreciation and Amortization 205,772,000
Capital Expenditure -128,086,000
Unlevered Free Cash Flow 648,169,484
Current Assets 1,720,717,000
Current Cash 519,216,000
Current Liabilities 1,294,957,000
Current Debt 0
Non-Cash Working Capital (NCWC) -93,456,000
Change in NCWC 10,612,000
EBIT 513,364,000
Tax Provision 67,145,000
Depreciation and Amortization 211,224,000
Capital Expenditure -231,146,000
Unlevered Free Cash Flow 422,283,007
Current Assets 2,048,486,000
Current Cash 979,608,000
Current Liabilities 1,172,946,000
Current Debt 0
Non-Cash Working Capital (NCWC) -104,068,000
Change in NCWC 57,274,000
EBIT 517,333,000
Tax Provision 76,086,000
Depreciation and Amortization 214,885,000
Capital Expenditure -133,392,000
Unlevered Free Cash Flow 579,358,183
Current Assets 2,100,391,000
Current Cash 1,095,723,000
Current Liabilities 1,366,010,000
Current Debt 200,000,000
Non-Cash Working Capital (NCWC) -161,342,000
Change in NCWC -41,989,000
EBIT 483,141,000
Tax Provision 75,367,000
Depreciation and Amortization 211,791,000
Capital Expenditure -130,086,000
Unlevered Free Cash Flow 447,732,102
Current Assets 2,378,162,000
Current Cash 1,354,012,000
Current Liabilities 1,363,503,000
Current Debt 220,000,000
Non-Cash Working Capital (NCWC) -119,353,000
Change in NCWC -128,115,000
EBIT 528,948,000
Tax Provision 67,241,000
Depreciation and Amortization 174,795,000
Capital Expenditure -120,503,000
Unlevered Free Cash Flow 385,848,187
Current Assets 2,423,974,000
Current Cash 1,424,465,000
Current Liabilities 1,200,747,000
Current Debt 210,000,000
Non-Cash Working Capital (NCWC) 8,762,000
Change in NCWC -72,676,000
EBIT 495,648,000
Tax Provision 67,428,000
Depreciation and Amortization 162,772,000
Capital Expenditure -111,569,000
Unlevered Free Cash Flow 405,907,094
Current Assets 2,282,074,000
Current Cash 1,326,380,000
Current Liabilities 1,074,256,000
Current Debt 200,000,000
Non-Cash Working Capital (NCWC) 81,438,000
Change in NCWC 24,103,000
EBIT 481,552,000
Tax Provision 63,038,000
Depreciation and Amortization 140,776,000
Capital Expenditure -106,724,000
Unlevered Free Cash Flow 475,863,585
Current Assets 2,041,070,000
Current Cash 1,118,177,000
Current Liabilities 1,065,558,000
Current Debt 200,000,000
Non-Cash Working Capital (NCWC) 57,335,000
Change in NCWC 12,691,000
EBIT 442,472,000
Tax Provision 50,153,000
Depreciation and Amortization 159,614,000
Capital Expenditure -122,053,000
Unlevered Free Cash Flow 442,463,316

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