Discounted Cash Flow (DCF) Analysis Levered

Amdocs Limited (DOX)

$84.37

+0.32 (+0.38%)
All numbers are in Millions, Currency in USD
Stock DCF: 100.37 | 84.37 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,867.163,974.844,086.674,169.044,288.644,401.034,516.364,634.724,756.174,880.81
Revenue (%)
Operating Cash Flow 636.11557.25656.38658.14925.81738.52757.88777.74798.12819.04
Operating Cash Flow (%)
Capital Expenditure -133.39-231.15-128.09-205.51-210.44-195.71-200.84-206.11-211.51-217.05
Capital Expenditure (%)
Free Cash Flow 502.72326.10528.29452.63715.37542.81557.03571.63586.61601.99

Weighted Average Cost Of Capital

Share price $ 84.37
Beta 0.746
Diluted Shares Outstanding 129.28
Cost of Debt
Tax Rate 15.46
After-tax Cost of Debt 4.23%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.378
Total Debt 881.17
Total Equity 10,907.69
Total Capital 11,788.86
Debt Weighting 7.47
Equity Weighting 92.53
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,867.163,974.844,086.674,169.044,288.644,401.034,516.364,634.724,756.174,880.81
Operating Cash Flow 636.11557.25656.38658.14925.81738.52757.88777.74798.12819.04
Capital Expenditure -133.39-231.15-128.09-205.51-210.44-195.71-200.84-206.11-211.51-217.05
Free Cash Flow 502.72326.10528.29452.63715.37542.81557.03571.63586.61601.99
WACC
PV LFCF 511.02493.71476.98460.81445.20
SUM PV LFCF 2,387.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.22
Free cash flow (t + 1) 614.02
Terminal Value 14,550.35
Present Value of Terminal Value 10,760.74

Intrinsic Value

Enterprise Value 13,148.46
Net Debt 172.11
Equity Value 12,976.35
Shares Outstanding 129.28
Equity Value Per Share 100.37