Amdocs Valuation
| DOX Stock | USD 85.04 0.67 0.78% |
At this time, the firm appears to be undervalued. Amdocs shows a prevailing Real Value of $97.7 per share. The current price of the firm is $85.04. Our model approximates the value of Amdocs from analyzing the firm fundamentals such as profit margin of 0.11 %, and Return On Equity of 0.16 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Amdocs' valuation include:
Price Book 2.8051 | Enterprise Value 10.2 B | Enterprise Value Ebitda 11.655 | Price Sales 2.0185 | Forward PE 13.1406 |
Undervalued
Today
Please note that Amdocs' price fluctuation is very steady at this time. Calculation of the real value of Amdocs is based on 3 months time horizon. Increasing Amdocs' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Amdocs is useful when determining the fair value of the Amdocs stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Amdocs. Since Amdocs is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Amdocs Stock. However, Amdocs' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 85.04 | Real 97.7 | Target 108.0 | Hype 85.53 | Naive 86.55 |
The real value of Amdocs Stock, also known as its intrinsic value, is the underlying worth of Amdocs Company, which is reflected in its stock price. It is based on Amdocs' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Amdocs' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Amdocs' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Amdocs helps investors to forecast how Amdocs stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Amdocs more accurately as focusing exclusively on Amdocs' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Amdocs' intrinsic value based on its ongoing forecasts of Amdocs' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Amdocs' closest peers. When choosing an evaluation method for Amdocs, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Amdocs Investments |
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Amdocs Valuation Trend
Knowing Amdocs' actual value is paramount for traders to make sound investment determinations. Amdocs' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Amdocs' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Amdocs' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Amdocs Market Cap
Amdocs is rated # 5 in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 76.15 Billion. Amdocs retains roughly 9.91 Billion in market capitalization claiming about 13% of equities under Information Technology industry.Amdocs Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Amdocs's current stock value. Our valuation model uses many indicators to compare Amdocs value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Amdocs competition to find correlations between indicators driving Amdocs's intrinsic value. More Info.Amdocs is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.15 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Amdocs is roughly 6.78 . Price To Book Ratio is likely to drop to 1.38 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Amdocs by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Amdocs' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Amdocs' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Amdocs' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Amdocs and how it compares across the competition.
About Amdocs Valuation
The stock valuation mechanism determines the current worth of Amdocs on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Amdocs. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Amdocs based exclusively on its fundamental and basic technical indicators. By analyzing Amdocs's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Amdocs's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Amdocs. We calculate exposure to Amdocs's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Amdocs's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2 B | 1.1 B | |
| Pretax Profit Margin | 0.12 | 0.11 | |
| Operating Profit Margin | 0.13 | 0.15 | |
| Net Profit Margin | 0.1 | 0.08 | |
| Gross Profit Margin | 0.35 | 0.41 |
8 Steps to conduct Amdocs' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Amdocs' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Amdocs' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Amdocs' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Amdocs' revenue streams: Identify Amdocs' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Amdocs' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Amdocs' growth potential: Evaluate Amdocs' management, business model, and growth potential.
- Determine Amdocs' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Amdocs' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Amdocs represents a small ownership stake in the entity. As a stockholder of Amdocs, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Amdocs Dividends Analysis For Valuation
At this time, Amdocs' Dividend Yield is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to rise to 13.23 in 2024, whereas Dividends Paid is likely to drop slightly above 170.3 M in 2024. . At this time, Amdocs' Retained Earnings are fairly stable compared to the past year. Price Earnings To Growth Ratio is likely to rise to 15.53 in 2024, whereas Earnings Yield is likely to drop 0.04 in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 229.4 M | 170.3 M | |
| Dividend Yield | 0.02 | 0.04 | |
| Dividend Payout Ratio | 0.42 | 0.40 | |
| Dividend Paid And Capex Coverage Ratio | 12.60 | 13.23 |
There are various types of dividends Amdocs can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Amdocs shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Amdocs directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Amdocs pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Amdocs by the value of the dividends paid out.
Amdocs Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Amdocs does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 118.5 M | |
| Quarterly Earnings Growth Y O Y | 0.18 | |
| Forward Price Earnings | 13.1406 |
Amdocs Current Valuation Indicators
Valuation refers to the process of determining the present value of Amdocs and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Amdocs we look at many different elements of the entity such as Amdocs's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Amdocs' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Amdocs' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Amdocs, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Amdocs' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Amdocs' worth.When determining whether Amdocs offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amdocs' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amdocs Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amdocs Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Amdocs. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons. For more information on how to buy Amdocs Stock please use our How to Invest in Amdocs guide.You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Complementary Tools for Amdocs Stock analysis
When running Amdocs' price analysis, check to measure Amdocs' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Amdocs is operating at the current time. Most of Amdocs' value examination focuses on studying past and present price action to predict the probability of Amdocs' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Amdocs' price. Additionally, you may evaluate how the addition of Amdocs to your portfolios can decrease your overall portfolio volatility.
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Is Amdocs' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amdocs. If investors know Amdocs will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amdocs listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.18 | Dividend Share 1.74 | Earnings Share 4.68 | Revenue Per Share 41.665 | Quarterly Revenue Growth 0.05 |
The market value of Amdocs is measured differently than its book value, which is the value of Amdocs that is recorded on the company's balance sheet. Investors also form their own opinion of Amdocs' value that differs from its market value or its book value, called intrinsic value, which is Amdocs' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amdocs' market value can be influenced by many factors that don't directly affect Amdocs' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amdocs' value and its price as these two are different measures arrived at by different means. Investors typically determine if Amdocs is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amdocs' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.