Market Pulse53Neutral

Amdocs Limited(DOX) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$50.85

Last updated: Jul 24, 2026

Price vs Intrinsic Value

$50.85
Price
$100.42
Intrinsic Value
Undervalued by 97%MOS: $80.34

Fundamental Score

62/100
Neutral

Weighted across 6 signals

Narrative Score

52/100
Weak

No change vs previous

Trend Score

0/100
Unavailable

Trend data unavailable

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The intrinsic value of Amdocs Limited (DOX) is estimated at $100.42 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $50.85, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 2.08% long-term growth rate and a 10.00% discount rate (calculated: 7.11%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Amdocs Limited (DOX) is estimated at $100.42 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $50.85, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 2.08% long-term growth rate and a 10.00% discount rate (calculated: 7.11%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$100.42
97.48% upside
20% margin of safety: $80.34
Years: 10Growth Rate: 2.08%
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Capital Efficiency

Average Quarterly ROIC
3.79%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

62/100
NeutralWeighted across 6 signals
DCF Discount
97.5% discount to price
100
FCF Yield
16.6% trailing FCF yield
100
ROIC vs WACC
ROIC 3.8% vs WACC 9.0% (0.4x)
21
Net Debt / FCF
0.8x net debt to FCF
85
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
1.0% 5Y FCF CAGR
25
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, FCF CAGR (5Y).

Narrative Details

52/100
Weak
Vs 6-Month Baseline:Above Avg (74th pct)Weighted across 3 recent drivers
Trend: StableConfidence: 58%Updated: 1d ago
Sources: 11 (10 News · 1 Analyst)
Drivers(last 30 days)
9 news sentiment+0.2
Regulatory scrutiny-0.0
Analyst reiterations0.0

Trend Details

0/100
NeutralRules-based daily model
Trend score unavailable for this ticker right now.

Investment Coach

Updating... 17d ago
BUYConfidence: 49%
Thesis
Amdocs Limited is undervalued with an estimated fair value nearly 98% above its current price, supported by strong free cash flow yield and constructive fundamentals. Despite trailing returns relative to its cost of capital, the company shows potential for value appreciation driven by healthy cash flow and buyback activity.
Key Risk
The key risk is the negative spread between ROIC and WACC, indicating returns are currently below the cost of capital which may pressure valuation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC versus WACC spread for sustained improvement.
  • Watch for emergence of narrative signals or fresh sentiment coverage to confirm investment thesis.
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 2.08%5 Year CAGR (Adjusted): -2.35%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$907$853$830$947$984$1,136$864$784$788$770$750$893$821$777$636$645$772$602$619$590$510

How Intrinziq Estimates Fair Value

Intrinziq estimates Amdocs Limited's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Amdocs LimitedTechnology

Amdocs Limited is a global provider of software solutions and associated services, operating through its various subsidiaries worldwide. The company is actively involved in the full lifecycle of its cloud-based portfolio, from designing and developing to operating, implementing, supporting, and marketing these open and modular offerings. Its diverse product lineup includes CES21, a leading customer experience suite built on 5G and cloud-native microservices architecture, which empowers service providers to develop, deliver, and monetize advanced services. Amdocs also offers a Commerce and Care suite for streamlining order processing and customer engagement, and a Monetization suite that handles charging, billing, policy enforcement, and overall revenue management. Further offerings include an Intelligent Networking suite, providing modular, flexible, and open service lifecycle management capabilities for network automation; MarketONE, a cloud-native business ecosystem; the Digital Brands Suite, a pre-integrated digital business platform tailored for emerging digital telecom brands and smaller service providers; and the eSIM Cloud for service providers. Beyond these core products, Amdocs furnishes AI-powered, cloud-native home operating systems, various data intelligence solutions, and applications. The company also extends its expertise to media services for publishers, TV networks, and video streaming providers, along with end-to-end application development and maintenance services and continuous operational support. Amdocs provides an extensive array of services that cater to every stage of a service provider's lifecycle. These encompass design, delivery, quality engineering, operations, systems integration, mobile network services, expert consulting, and content services. Additionally, its managed services segment covers application development, modernization, and maintenance, IT and infrastructure support, testing, and professional services, all designed to assist clients in the selection, implementation, operation, management, and upkeep of their IT systems. The company's clientele primarily consists of service providers across the communications, cable and satellite, entertainment, and broader media industries, alongside mobile virtual network operators (MVNOs) and directory publishers. Amdocs Limited was established in 1988 and maintains its corporate headquarters in Saint Louis, Missouri.