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This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

Some current wealth and income statistics:

• In 2025, the world’s 3,028 billionaires have a combined wealth of $16.1tn. This is a similar value to the world’s second-largest economy, China

• The richest 1 per cent of the world’s population accounts for 43 per cent of the value of all global financial assets

• The bottom 50 per cent of the world’s population owns just 2 per cent of the value of all global financial assets

• If Elon Musk achieved an asset value of $1tn, it would make his wealth the equivalent of the 20th largest economy in the world (above Belgium, Taiwan and Argentina)

• The US Gini coefficient has increased from 0.43 in 1990 to 0.49 in 2024

Read the article and then answer the questions:

Elon Musk celebrates $1tn Tesla pay vote victory

• Outline the difference between Elon Musk’s income and wealth [2]

• Outline what Elon Musk has to achieve in terms of the value of Tesla to receive his $1tn income payment [2]

• Using a diagram, explain the Lorenz curve [4]

• Explain how the Gini coefficient can be used to measure income inequality [4]

• Outline what an increase in the US’ Gini coefficient from 0.43 in 1990 to 0.49 in 2024 shows [2]

• Explain two factors that might lead to an increase in income inequality in the US [4]

• Explain two negative consequences of increasing income inequality in the US [4]

• Explain two benefits of paying someone like Elon Musk, such as a large income [4]

Alex Smith, Sevenoaks School, InThinking/thinkIB

Amdocs (DOX) shares edged up slightly after a week of moderate moves, catching the eye of investors tracking sector sentiment. The company’s recent 1% daily gain and 5% climb over the past month add some interest to its performance.

See our latest analysis for Amdocs.

While Amdocs has seen a modest uptick recently, it is worth noting that momentum has cooled compared to earlier in the year. The company’s latest share price of $84.57 puts its 1-year total shareholder return at -6%, suggesting investors remain cautious, even as the 5-year total shareholder return stands at a solid 46%. It appears that the stock’s long-term gains are intact, though sentiment has softened in the short run.

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With shares lagging over the past year yet trading at a meaningful discount to analyst targets, investors may wonder if Amdocs is undervalued at these levels, or if future growth is already factored into the price.

Amdocs recently closed at $84.57, while the most widely followed narrative pegs its fair value closer to $104.00. This suggests a notable gap, pointing to market skepticism or a disconnect with analyst expectations.

The accelerating adoption of cloud, automation, and AI/ML across telecom and media sectors is driving a multi-year wave of IT stack modernization. Amdocs is winning new large-scale modernization and migration deals in cloud, generative AI, and data services, which is expanding its total addressable market and supporting sustained topline revenue growth.

Read the complete narrative.

Want to know what propels this bullish case? The secret lies in aggressive profit margin expansion and growth that bucks the trend for most IT peers. Find out the ambitious assumptions underwriting this valuation and why some think Amdocs could shatter expectations.

Result: Fair Value of $104.00 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent macro uncertainty and heavy reliance on a handful of large telecom clients could pose challenges to Amdocs’s ability to deliver its anticipated growth.

Find out about the key risks to this Amdocs narrative.

If you think a different story is unfolding, or want to dig into the numbers yourself, you can craft your own view in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Amdocs.

Seize the moment to stay ahead of the market. Fresh opportunities are waiting for smart investors who go beyond the obvious and act decisively.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include DOX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com