Ansys Inc. develops and markets engineering simulation software and services used by engineers, designers, researchers, and students in the aerospace, automotive, materials and chemical processing, turbo machinery, consumer products, electronics, biomedical, energy, and defense and other industries, as well as academia worldwide. The company was founded in 1970 and is based in Canonsburg, Pennsylvania.
ANSS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ANSS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Ansys Inc ranked in the 14th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Ansys Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 36.09 -- which is good for besting 86.14% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than only 8.65% of the free cash flow producing stocks we're observing.
ANSS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 52.98% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ANSS, try EPAY, AIRG, GLW, SPOT, and VECO.
Machine vision leader Cognex (NASDAQ: CGNX), industrial software company PTC (NASDAQ: PTC), and engineering simulation and design software company ANSYS (NASDAQ: ANSS) are companies in a hurry. Cognex's machine vision solutions make it a major beneficiary of the trend toward automation in manufacturing and logistics.
PITTSBURGH, Jan. 11, 2021 /PRNewswire/ -- / Key Highlights Navantia and Ansys are significantly reducing the development time and increasing the performance of next-generation navy ships including F-110 frigates and S80 submarines Through a new strategic agreement, Navantia engineers will…
PITTSBURGH, Jan. 5, 2021 /PRNewswire/ -- / Key Highlights Ansys announces winners of its inaugural Art of Simulation competition The competition commemorates Ansys' 50th anniversary and showcases how engineers are using simulation to shape future innovations The six winning entries of the…