Aspen Technology is a supplier of software that optimizes process manufacturing – for energy, chemicals, engineering and construction, and other industries that manufacture and produce products from a chemical process. The company was founded in 1981 and is based in Bedford, Massachusetts.
AZPN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AZPN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Aspen Technology Inc ranked in the 23th 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. The most interesting components of our discounted cash flow analysis for Aspen Technology Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 25.21; that's higher than 81.83% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately only 16.26% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
AZPN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 43.63% 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 AZPN, try TSM, DOX, IEHC, ITRI, and KOSS.
Aspen Technology, Inc. (NASDAQ:AZPN), a global leader in asset optimization software, today announced that it will release financial results for its second-quarter fiscal 2021, ended December 31, 2020, after the U.S. financial markets close on Wednesday, January 27, 2021.
Aspen Technology, Inc. (NASDAQ:AZPN), a global leader in asset optimization software, has appointed David Leitham as Senior Vice President and General Manager to lead the company’s pharmaceutical industry growth strategy.
BEDFORD, Mass.--(BUSINESS WIRE)--Aspen Technology, Inc. (NASDAQ:AZPN), a global leader in asset optimization software, today announced it has joined the Alliance to End Plastic Waste. AspenTech will work with fellow members to support innovation to build a more sustainable global plastic value chain. From industrial process design to driving greater efficiency in industrial operations, AspenTech solutions help producers reduce waste and emissions from plastic production, and accelerate innovati
DUBLIN--(BUSINESS WIRE)--The "Global Chemical Software Market 2020-2024" report has been added to ResearchAndMarkets.com's offering. The publisher has been monitoring the chemical software market and it is poised to grow by $192.36 million during 2020-2024, progressing at a CAGR of 5% during the forecast period. The reports on the chemical software market provide a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25
BEDFORD, Mass.--(BUSINESS WIRE)--Aspen Technology, Inc. (NASDAQ: AZPN), a global leader in asset optimization software, today announced the acquisition of OptiPlant to further strengthen the company’s solutions for owner-operators and EPC companies in the process industries. AI-driven 3D conceptual plant layout with parametric asset models and automatic pipe routing enables closer collaboration between owner-operators and EPCs to improve accuracy, reliability and speed of cost estimates from th