Definitive Analysis
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Amdocs Limited (DOX)

Company Dividend Discount ModelIndustry: Software - InfrastructureSector: Technology

Valuation Snapshot

Stable Growth$51.84 - $81.84$65.56
Multi-Stage$68.17 - $74.64$71.34
Blended Fair Value$68.45
Current Price$91.24
Upside-24.97%
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 Rate9.10%9.10%9.10%
Growth Rate1.20%2.20%3.20%
Fair Value$51.84$65.56$81.84
Upside / Downside-43.18%-28.14%-10.30%

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 Rate9.10%9.10%9.10%
Growth Rate1.20%2.20%3.20%
Year 1 PV (M)260.93263.51266.09
Year 2 PV (M)290.99296.77302.61
Year 3 PV (M)315.33324.78334.40
Year 4 PV (M)334.62348.05361.87
Year 5 PV (M)349.46367.07385.39
PV of Terminal Value (M)6,066.666,372.406,690.33
Equity Value (M)7,618.017,972.578,340.69
Shares Outstanding (M)111.75111.75111.75
Fair Value$68.17$71.34$74.64
Upside / Downside-25.28%-21.81%-18.20%

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