Aspen Technology, Inc. ($AZPN) Possible Buy to $44 Confident Investor Rating: Good

Company name Aspen Technology, Inc.
Stock ticker AZPN
Live stock price [stckqut]AZPN[/stckqut]
P/E compared to competitors Good


Employee productivity Fair
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good


Confident Investor Rating Good
Target stock price (TWCA growth scenario) $60.34
Target stock price (averages with growth) $57.32
Target stock price (averages with no growth) $25.79
Target stock price (manual assumptions) $50.37

The following company description is from Google Finance:

Aspen Technology, Inc. provides process optimization software solutions designed to manage and optimize plant and process design, operational performance and supply chain planning. The Company operates through two segments: subscription and software, and services. Its subscription and software segment is engaged in the licensing of process optimization software solutions and associated support services. The Company’s services segment includes professional services and training. Its aspenONE software and related services have been developed for companies in the process industries, including the energy, chemicals, and engineering and construction industries. The Company’s aspenONE software applications are organized into two suites: aspenONE Engineering, and aspenONE Manufacturing and Supply Chain. It has designed and developed its software applications across three principal business areas: Engineering, Manufacturing and Supply chain management.


Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Aspen Technology, Inc.


If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Aspen Technology, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $39.09
  • Growth: 0.2
  • Current EPS (TTM): $1.63
  • P/E: 20
  • Future EPS Calc: $4.05
  • Future Stock Price Calc: $81.11
  • Target stock price: $50.36

I hope that this makes you a Confident Investor.

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