Stock fact sheet · data as of
Amdocs Limited (DOX): fair value, margin of safety and Wheel Score
Technology · Software - Infrastructure · United States · Defensive
Is DOX undervalued?
DOX closed at 60.68 on 16 Oct 2026, 23% below the GLS average fair value of 78.72 from 9 models (4 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 22 of the 25 Value points.
There is a wide gap between GLS Growth (18.96) and 10 Cap (151.17). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files DOX under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for DOX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 91.96 | +52% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 54.99 | -9% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 136.17 | +124% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 51.31 | -15% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 18.96 | -69% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 151.17 | +149% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 123.17 | +103% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 32.87 | -46% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 47.91 | -21% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -11.03 | -118% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 71.00 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Amdocs Limited scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability DOX scores 6.5/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 13.3%, ROE 16.5%, ROA 9.0% - with debt at 0.24 times equity and a free-cash-flow yield of 9.8%.
The dividend yield is 3.68% at a payout ratio of 51%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Managed services arrangements 66%, Others 34% (fiscal year FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 13.3% |
|---|---|---|---|
| GLS Moat | 6.5 / 10 | ROE | 16.5% |
| Debt / equity | 0.24 | ROA | 9.0% |
| Free-cash-flow yield | 9.8% | Payout ratio | 51% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 82: Prime
With a Wheel Score of 82, Amdocs Limited sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 22/25, Health 13/20, Moat 10/15, Premium 20/20, Stability 17/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 39% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 10,707 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 785k shares a day on a market cap of $6.5B, with a beta of 0.45 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 22 / 25 | 23% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 10 / 15 | moat 6.5/10 | |
| Premium | 20 / 20 | implied volatility 39% | |
| Stability | 17 / 20 | 785k shares/day, $6.5B cap, beta 0.45 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 10 Nov 2026 (after the close), 25 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Infrastructure
The 12 companies below are the closest to Amdocs Limited by market cap within the Software - Infrastructure industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| QLYS Qualys, Inc. | 189.63 | 172.61 | -10% | 74Good | $6.6B |
| ZVLO zvelo, Inc. | 252.00 | - | - | 36No options | $6.7B |
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| WEX WEX Inc. | 174.59 | 155.54 | -12% | 63Fair | $6.0B |
| MBGL Mobility Global Inc | 18.72 | 8.46 | -121% | 45Weak | $5.5B |
| S SentinelOne, Inc. | 22.82 | 17.05 | -34% | 45Weak | $7.8B |
| BOX Box, Inc. | 39.48 | 34.36 | -15% | 71Good | $5.4B |
| VRNS Varonis Systems, Inc. | 47.06 | 21.28 | -121% | 45Weak | $5.4B |
| DBX Dropbox, Inc. | 36.54 | 71.80 | +49% | 88Prime | $7.9B |
| ACIW ACI Worldwide, Inc. | 52.55 | 68.94 | +24% | 89Prime | $5.3B |
| BB BlackBerry Limited | 8.70 | 3.04 | -186% | 59Fair | $5.1B |
| NTSK Netskope, Inc. Class A Common Stock | 20.45 | - | - | 45Weak | $8.4B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about DOX
Is DOX undervalued right now?
By the GLS models, moderately: at 60.68 the stock trades 23% below the average fair value of 78.72 (data as of 16 Oct 2026).
What is the Wheel Score of DOX and what does it mean?
DOX scores 82 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DOX?
78.72 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Amdocs Limited report earnings next?
The next earnings report is due on 10 Nov 2026 (after the close), 25 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DOX have listed options, and how liquid are they?
Yes. The nightly snapshot found 130 listed contracts with 10,707 open interest across all expiries and implied volatility of 39% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.