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Amdocs Ltd – Custom Computer Programming Services
amdocs is the market-leader in customer experience software solutions and services for the world’s largest communications, entertainment and media service providers. our portfolio powers the new world of customer experience™, where a wide array of innovative and personalized services are delivered seamlessly to end users, regardless of device or network. for more than 30 years, amdocs solutions, which include bss, oss, network control and optimization, coupled with our professional and managed services, have accelerated business value for our customers by streamlining complex operating environments, reducing costs and speeding time to market for new products and services. amdocs and our more than 24,000 employees serve customers in over 90 countries. listed on the nasdaq global select market, amdocs had revenue of $3.6 billion in fiscal 2014. amdocs: embrace challenge, experience success. for more information, visit amdocs at www.amdocs.com.
Analysis Results
Intrinsic Value $167.33
Latest Price $85.08
Relative Value 49% 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 4.2%. 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 624 599
2024 650 599
2025 677 599
2026 705 598
2027 734 598
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 22000 million. This corresponds to a present value of 17200 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2990 million. Adding in the terminal value gives a total present value of 20200 million.

There are presently 121.0 million outstanding shares, so the intrinsic value per share is 167.33.

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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