Stock fact sheet · data as of
Amdocs Limited (DOX): fair value, margin of safety and Wheel Score
Ticker symbol DOX · Technology · Software - Infrastructure · United States · Value Income
Is DOX undervalued?
DOX has a margin of safety of 44%: the stock closed at 43.66 on 5 Nov 2026 against a GLS average fair value of 77.34. 7 of the 9 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between GLS Growth (18.63) 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.
Ranked against every other company we cover, DOX is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 67, growth score 20, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
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 | 102.34 | +134% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 54.99 | +26% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 121.49 | +178% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 43.80 | +0% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 18.63 | -57% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 151.17 | +246% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 122.83 | +181% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 32.87 | -25% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 47.91 | +10% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -11.03 | -125% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 71.00 | +63% | 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 "Piotroski 6 or more" Wheel Trade Filter. 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 7.2/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
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 13.6%.
The dividend yield is high at 5.12% (payout ratio 51%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. 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 | 7.2 / 10 | ROE | 16.5% |
| Debt / equity | 0.24 | ROA | 9.0% |
| Free-cash-flow yield | 13.6% | Payout ratio | 51% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 84: Good
With a Wheel Score of 84 - the Good band - Amdocs Limited passes all 9 Wheel Trade Filters. How it ranks: value strong, premium strong, moat good, health good, red flags strong, option trading fair, stability good. Option trading (fair) is the part keeping it out of the Prime band.
Implied volatility is 47% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 5,260 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 9.4M shares a day on a market cap of $4.7B, with a beta of 0.43 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 44% below fair value | |
| Premium | Strong | implied volatility 47% | |
| Moat | Good | moat 7.2/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Fair | 2,770 contracts a day, 5,260 open interest | |
| Stability | Good | beta 0.43, $4.7B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Feb 2027, 89 days away - outside the window of a 30-45-day put sold today.
Analysts downgraded DOX 1 time in the last 30 days with no upgrades; the latest action was a downgrade by Oppenheimer on 4 Nov 2026.
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.
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| CORZ Core Scientific, Inc. | 12.76 | - | - | 17Weak | $4.1B |
| CORZZ Core Scientific, Inc. Tranche 2 Warrants | 12.89 | - | - | 11No options | $4.1B |
| DLO Dlocal Limited | 13.90 | 32.03 | +57% | 57Fair | $4.1B |
| VRNS Varonis Systems, Inc. | 48.80 | 20.74 | -135% | 22Weak | $5.6B |
| RELY Remitly Global, Inc. | 27.08 | 53.98 | +50% | 49Weak | $5.7B |
| MBGL Mobility Global Inc | 19.79 | 8.56 | -131% | 35Weak | $5.8B |
| WEX WEX Inc. | 180.11 | 170.16 | -6% | 35Weak | $5.9B |
| ACIW ACI Worldwide, Inc. | 59.19 | 67.27 | +12% | 44Weak | $6.0B |
Scan 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 top 10 stocks that pass all 9 Wheel Trade Filters, 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, yes: at 43.66 the stock is 44% below the average fair value of 77.34 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of DOX and what does it mean?
DOX scores 84 out of 100 (Good). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for DOX?
77.34 per share as of 5 Nov 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 2 Feb 2027, 89 days from the data date of 5 Nov 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 60 listed contracts with 5,260 open interest across all expiries and implied volatility of 47% 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.