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Amdocs Limited (DOX)

Company Dividend Discount ModelIndustry: Software - InfrastructureSector: Technology

Valuation Snapshot

Stable Growth$62.20 - $105.32$81.00
Multi-Stage$87.97 - $96.46$92.14
Blended Fair Value$86.57
Current Price$91.24
Upside-5.12%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS6.46%8.33%2.011.901.781.671.591.471.321.201.090.98
YoY Growth--5.86%6.27%7.19%4.85%8.17%11.14%9.92%10.53%11.16%8.45%
Dividend Yield--2.20%2.23%2.03%1.83%2.12%2.07%1.83%2.05%1.64%1.68%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)565.49
(-) Cash Dividends Paid (M)224.39
(=) Cash Retained (M)341.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)113.1070.6942.41
Cash Retained (M)341.10341.10341.10
(-) Cash Required (M)-113.10-70.69-42.41
(=) Excess Retained (M)228.00270.41298.69
(/) Shares Outstanding (M)111.75111.75111.75
(=) Excess Retained per Share2.042.422.67
LTM Dividend per Share2.012.012.01
(+) Excess Retained per Share2.042.422.67
(=) Adjusted Dividend4.054.434.68
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate1.20%2.20%3.20%
Fair Value$62.20$81.00$105.32
Upside / Downside-31.83%-11.23%15.43%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)565.49577.91590.60603.57616.82630.37649.28
Payout Ratio39.68%49.75%59.81%69.87%79.94%90.00%92.50%
Projected Dividends (M)224.39287.48353.23421.73493.07567.33600.58

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate1.20%2.20%3.20%
Year 1 PV (M)264.11266.72269.33
Year 2 PV (M)298.14304.06310.04
Year 3 PV (M)327.02336.81346.80
Year 4 PV (M)351.26365.35379.86
Year 5 PV (M)371.31390.03409.49
PV of Terminal Value (M)8,218.848,633.039,063.75
Equity Value (M)9,830.6810,296.0010,779.27
Shares Outstanding (M)111.75111.75111.75
Fair Value$87.97$92.14$96.46
Upside / Downside-3.58%0.98%5.72%

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