We’ve recently updated our valuation analysis.

Amdocs Valuation

Is DOX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

[object Object] Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DOX?

Other financial metrics that can be useful for relative valuation.

DOX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA12.5x
PEG Ratio2.9x

Price to Earnings Ratio vs Peers

How does DOX's PE Ratio compare to its peers?

The above table shows the PE ratio for DOX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average29.1x
DXC DXC Technology
8.8x7.6%US$6.6b
IT Gartner
36.6x0.6%US$27.8b
GLOB Globant
57.3x27.5%US$8.0b
CTSH Cognizant Technology Solutions
13.7x6.8%US$32.1b
DOX Amdocs
20x7.0%US$11.0b

Price-To-Earnings vs Peers: DOX is good value based on its Price-To-Earnings Ratio (20x) compared to the peer average (29.1x).


Price to Earnings Ratio vs Industry

How does DOX's PE Ratio compare vs other companies in the US IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.7%
n/an/an/a

Price-To-Earnings vs Industry: DOX is good value based on its Price-To-Earnings Ratio (20x) compared to the US IT industry average (29.3x)


Price to Earnings Ratio vs Fair Ratio

What is DOX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DOX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20x
Fair PE Ratio24.4x

Price-To-Earnings vs Fair Ratio: DOX is good value based on its Price-To-Earnings Ratio (20x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).


Share Price vs Fair Value

What is the Fair Price of DOX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DOX ($90.17) is trading below our estimate of fair value ($139.57)

Significantly Below Fair Value: DOX is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DOX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$90.17
US$93.00
+3.1%
5.5%US$100.00US$85.00n/a5
Nov ’23US$84.67
US$94.20
+11.3%
4.8%US$99.00US$88.00n/a5
Oct ’23US$79.45
US$94.20
+18.6%
4.8%US$99.00US$88.00n/a5
Sep ’23US$84.47
US$94.20
+11.5%
4.8%US$99.00US$88.00n/a5
Aug ’23US$86.31
US$91.20
+5.7%
4.4%US$99.00US$88.00n/a5
Jul ’23US$84.45
US$91.20
+8.0%
4.4%US$99.00US$88.00n/a5
Jun ’23US$86.81
US$91.20
+5.1%
4.4%US$99.00US$88.00n/a5
May ’23US$79.69
US$90.17
+13.1%
6.3%US$99.00US$80.00n/a6
Apr ’23US$83.46
US$90.17
+8.0%
6.3%US$99.00US$80.00n/a6
Mar ’23US$78.39
US$90.17
+15.0%
6.3%US$99.00US$80.00n/a6
Feb ’23US$77.00
US$88.57
+15.0%
6.0%US$99.00US$80.00n/a7
Jan ’23US$74.84
US$88.57
+18.3%
6.0%US$99.00US$80.00n/a7
Dec ’22US$68.34
US$89.29
+30.6%
5.9%US$99.00US$80.00US$89.997
Nov ’22US$78.10
US$87.86
+12.5%
6.5%US$99.00US$80.00US$84.677
Oct ’22US$76.27
US$87.86
+15.2%
6.5%US$99.00US$80.00US$79.457
Sep ’22US$77.26
US$87.86
+13.7%
6.5%US$99.00US$80.00US$84.477
Aug ’22US$77.11
US$84.29
+9.3%
3.9%US$90.00US$80.00US$86.317
Jul ’22US$78.96
US$84.29
+6.7%
3.9%US$90.00US$80.00US$84.457
Jun ’22US$78.49
US$84.29
+7.4%
3.9%US$90.00US$80.00US$86.817
May ’22US$76.74
US$83.86
+9.3%
4.7%US$90.00US$78.00US$79.697
Apr ’22US$72.40
US$83.86
+15.8%
4.7%US$90.00US$78.00US$83.467
Mar ’22US$77.27
US$83.86
+8.5%
4.7%US$90.00US$78.00US$78.397
Feb ’22US$72.49
US$76.43
+5.4%
5.5%US$82.00US$68.00US$77.007
Jan ’22US$70.93
US$75.71
+6.7%
4.7%US$80.00US$68.00US$74.847
Dec ’21US$66.50
US$75.71
+13.9%
4.7%US$80.00US$68.00US$68.347

Analyst Forecast: Target price is less than 20% higher than the current share price.


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