Amdocs Limited - Ordinary Shares (DOX) Company Bio
Amdocs Limited provides software and services for communications, media, and entertainment industry service providers worldwide. The Company designs, develops, markets, supports, implements and operates customer experience systems for wireless, wireline, cable and satellite service providers across the world. The company was founded in 1988 and is based in Saint Peter Port, the Channel Islands.
DOX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Amdocs Ltd. To summarize, we found that Amdocs Ltd ranked in the 28th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 55.83%. The most interesting components of our discounted cash flow analysis for Amdocs Ltd ended up being:
In the past 5.03 years, Amdocs Ltd has a compound free cash flow growth rate of -0.02%; that's better than only 18.9% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than merely 0% of the free cash flow producing stocks we're observing.
DOX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 64.84% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DOX, try BKI, GVP, ASML, BR, and DSGX.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Amdocs Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
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