Aspen Technology Valuation
| AZPN Stock | USD 250.00 0.40 0.16% |
At this time, the firm appears to be overvalued. Aspen Technology shows a prevailing Real Value of $203.42 per share. The current price of the firm is $250.0. Our model approximates the value of Aspen Technology from analyzing the firm fundamentals such as Current Valuation of 15.69 B, profit margin of (0.03) %, and Return On Equity of -0.0028 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Aspen Technology's valuation include:
Price Book 1.2399 | Enterprise Value 15.7 B | Enterprise Value Ebitda 41.8291 | Price Sales 14.4531 | Forward PE 33.8983 |
Overvalued
Today
Please note that Aspen Technology's price fluctuation is very steady at this time. Calculation of the real value of Aspen Technology is based on 3 months time horizon. Increasing Aspen Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Aspen Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Aspen Stock. However, Aspen Technology's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 250.0 | Real 203.42 | Target 201.83 | Hype 250.17 | Naive 247.79 |
The intrinsic value of Aspen Technology's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Aspen Technology's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Aspen Technology helps investors to forecast how Aspen stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Aspen Technology more accurately as focusing exclusively on Aspen Technology's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Aspen Technology's intrinsic value based on its ongoing forecasts of Aspen Technology's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Aspen Technology's closest peers.
Aspen Technology Cash |
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Aspen Valuation Trend
Knowing Aspen Technology's actual value is paramount for traders when making sound investment determinations. Using both Aspen Technology's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Aspen Revenue by Product
Aspen Technology Total Value Analysis
Aspen Technology is presently projected to have valuation of 15.69 B with market capitalization of 15.81 B, debt of 98 M, and cash on hands of 382.46 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Aspen Technology fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
15.69 B | 15.81 B | 98 M | 382.46 M |
Aspen Technology Investor Information
About 58.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.24. Some equities with similar Price to Book (P/B) outperform the market in the long run. Aspen Technology recorded a loss per share of 0.58. The entity last dividend was issued on the 16th of August 2024. The firm had 2:1 split on the 3rd of March 1997. Based on the key measurements obtained from Aspen Technology's financial statements, Aspen Technology is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 356.9 M | 339.9 M |
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Aspen Technology Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Aspen suggests not a very effective usage of assets in November.Aspen Technology Ownership Allocation
Aspen Technology holds a total of 63.25 Million outstanding shares. Aspen Technology retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Also note that nearly three million one hundred thirty-seven thousand one hundred eighty-five invesors are currently shorting Aspen Technology expressing very little confidence in its future performance.Aspen Technology Profitability Analysis
The company reported the previous year's revenue of 1.13 B. Net Loss for the year was (9.77 M) with profit before overhead, payroll, taxes, and interest of 331.87 M.About Aspen Technology Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Aspen Technology. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Aspen Technology based exclusively on its fundamental and basic technical indicators. By analyzing Aspen Technology's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Aspen Technology's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Aspen Technology. We calculate exposure to Aspen Technology's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Aspen Technology's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 744.9 M | 782.2 M | |
| Pretax Profit Margin | (0.04) | (0.04) | |
| Operating Profit Margin | (0.08) | (0.08) | |
| Net Loss | (0.01) | (0.01) | |
| Gross Profit Margin | 0.66 | 0.60 |
Aspen Technology Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 63.7 M | |
| Quarterly Earnings Growth Y O Y | 0.682 | |
| Forward Price Earnings | 33.8983 |
Aspen Technology Current Valuation Indicators
Aspen Technology's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Aspen Technology's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Aspen Technology, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Aspen Technology's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Aspen Technology's worth.When determining whether Aspen Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Aspen Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Aspen Technology Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Aspen Technology Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aspen Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. To learn how to invest in Aspen Stock, please use our How to Invest in Aspen Technology guide.You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Aspen Technology. If investors know Aspen will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Aspen Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.682 | Earnings Share (0.58) | Revenue Per Share 17.245 | Quarterly Revenue Growth (0.13) | Return On Assets (0.01) |
The market value of Aspen Technology is measured differently than its book value, which is the value of Aspen that is recorded on the company's balance sheet. Investors also form their own opinion of Aspen Technology's value that differs from its market value or its book value, called intrinsic value, which is Aspen Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Aspen Technology's market value can be influenced by many factors that don't directly affect Aspen Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Aspen Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Aspen Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aspen Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.