Discounted Cash Flow (DCF) Analysis Levered

Amdocs Limited (DOX)

$94.32

+0.96 (+1.03%)

All numbers are in Millions, Currency in USD

Stock DCF: 99.19 | 94.32 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,974.84	4,086.67	4,169.04	4,288.64	4,576.70	4,741.63	4,912.50	5,089.53	5,272.94	5,462.95
Revenue (%)
Operating Cash Flow	557.25	656.38	658.14	925.81	756.72	796.49	825.19	854.93	885.73	917.65
Operating Cash Flow (%)
Capital Expenditure	-231.15	-128.09	-205.51	-210.44	-227.22	-225.23	-233.35	-241.76	-250.47	-259.50
Capital Expenditure (%)
Free Cash Flow	326.10	528.29	452.63	715.37	529.50	571.25	591.84	613.17	635.26	658.16

Weighted Average Cost Of Capital

Share price	$ 94.32
Beta	0.665
Diluted Shares Outstanding	129.28
Cost of Debt
Tax Rate	15.25
After-tax Cost of Debt	2.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.884
Total Debt	826.83
Total Equity	12,194.07
Total Capital	13,020.90
Debt Weighting	6.35
Equity Weighting	93.65
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,974.84	4,086.67	4,169.04	4,288.64	4,576.70	4,741.63	4,912.50	5,089.53	5,272.94	5,462.95
Operating Cash Flow	557.25	656.38	658.14	925.81	756.72	796.49	825.19	854.93	885.73	917.65
Capital Expenditure	-231.15	-128.09	-205.51	-210.44	-227.22	-225.23	-233.35	-241.76	-250.47	-259.50
Free Cash Flow	326.10	528.29	452.63	715.37	529.50	571.25	591.84	613.17	635.26	658.16
WACC
PV LFCF						535.79	520.63	505.90	491.59	477.68
SUM PV LFCF										2,531.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.62
Free cash flow (t + 1)	671.32
Terminal Value	14,530.75
Present Value of Terminal Value	10,546.17

Intrinsic Value

Enterprise Value	13,077.74
Net Debt	253.45
Equity Value	12,824.29
Shares Outstanding	129.28
Equity Value Per Share	99.19