Aspen Technology, Inc. ($AZPN) Possible Buy to $49 Confident Investor Rating: Good

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

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $56.56
Target stock price (averages with growth) $56.34
Target stock price (averages with no growth) $25.68
Target stock price (manual assumptions) $45.96

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, which are 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. The Company has developed its applications to design and optimize processes across three principal business areas: engineering, manufacturing and supply chain. The Company has three operating segments: license; software maintenance and support (SMS), training and other, and professional services. The Company provides integrated process optimization software solutions designed and developed specifically for the process industries.

 

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: $36.63
  • Growth: 0.15
  • Current EPS (TTM): $1.15
  • P/E: 32
  • Future EPS Calc: $2.31
  • Future Stock Price Calc: $74.01
  • Target stock price: $45.95

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I hope that this makes you a Confident Investor.

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