On the four Ms, Amdocs Ltd earns 96 for management and 44 for moat. The management score rests on a return on invested capital of 13.7% and a gross margin of 36.6% — figures that describe a business turning capital into profit efficiently. Debt sits at 0.24x equity. A moderate moat alongside exceptional management is a combination worth understanding before the price matters at all.
The valuation runs on assumptions chosen to understate rather than flatter. Growth is modelled at 1.7% a year, below the 2.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 8.0x. That produces an intrinsic value of $9.82, a 10-CAP price of $63.57 and a payback time price of $54.87, with the value zone set at the highest of the three, $63.57. Today's price of $58.36 sits inside that zone.
Amdocs Ltd currently reads as a strong business at a price the model supports. That is rare enough to warrant asking what the market sees that these figures do not.
| Price | $58.36 |
| Market cap | $6.3B |
| P/E ratio | 13.9x |
| Return on invested capital | 13.7% |
| Gross margin | 36.6% |
| Debt to equity | 0.24x |
| Free cash flow yield | 7.1% |
| Growth rate used | 1.7% |
| Growth rate measured | 2.0% |
| Exit multiple assumed | 8.0x |
| Company | Moat | Buy price |
| Qualys, Inc. (QLYS) | 99 | $128.95 |
| Wex Inc (WEX) | 34 | $81.39 |
| Dlocal Ltd (DLO) | 82 | $22.78 |
| Shift4 Payments Inc-Class A (FOUR) | 79 | $106.49 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Amdocs Ltd rather than accepting ours.