|Company name||Aspen Technology, Inc.|
|Live stock price||[stckqut]AZPN[/stckqut]|
|P/E compared to competitors||Fair|
|Confident Investor Rating||Poor|
|Target stock price (TWCA growth scenario)||$97.28|
|Target stock price (averages with growth)||$92.65|
|Target stock price (averages with no growth)||$41.96|
|Target stock price (manual assumptions)||$57.24|
The following company description is from Google Finance: http://www.google.com/finance?q=azpn
Aspen Technology, Inc. is a global provider of process optimization software solutions designed to manage and optimize plant and process design, operational performance, and supply chain planning. The Company’s aspenONE software and related services have been developed specifically for companies in the process industries, including the energy, chemicals, and engineering and construction industries. It operates through two segments, including subscription and software, which provides licensing of process optimization software solutions and associated support services, and services, which includes professional services and training. It has developed applications to design and optimize processes across the business areas, including engineering, manufacturing and supply chain. Its products include Aspen HYSYS, Aspen Economic Evaluation, Aspen Info Plus.21, Aspen PIMS Advanced Optimization, Aspen Collaborative Demand Manager and Aspen Supply Planner.
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Aspen Technology, Inc. I am removing the company from my Watch List.
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.
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: $62.81
- Growth: 0.1
- Current EPS (TTM): $2.12
- P/E: 27
- Future EPS Calc: $3.41
- Future Stock Price Calc: $92.18
- Target stock price: $57.24
I hope that this makes you a Confident Investor.