Altair Engineering Inc., together with its subsidiaries, provides enterprise-class engineering software worldwide. Its integrated suite of multi-disciplinary computer aided engineering software optimizes design performance across various disciplines, including structures, motion, fluids, thermal management, electro-magnetics, system modeling and embedded systems, as well as provides data analytics and true-to-life visualization and rendering. The company also offers client engineering services to support customers with long-term ongoing product design and development services, as well as consulting, training, and support services. Altair Engineering Inc. was founded in 1985 and is based in Troy, Michigan.
ALTR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Altair Engineering Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Altair Engineering Inc ranked in the 49th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 16.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Altair Engineering Inc, consider:
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately merely 16.31% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
As a business, Altair Engineering Inc experienced a tax rate of about 66% over the past twelve months; relative to its sector (Technology), this tax rate is higher than 93.05% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CDK, MIXT, NTWK, FIVN, and PRFT can be thought of as valuation peers to ALTR, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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