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Is this Large Market Cap Stock target price reasonable for Aspen Technology, Inc. (NASDAQ:AZPN)?

The company in question is, Aspen Technology, Inc. (NASDAQ:AZPN) currently with a stock price of 46.7 (1.28% today). The market cap for Aspen Technology, Inc. is 3672.66, and is in the sector Technology, and Business Software & Services industry. The target price for Aspen Technology, Inc. is 43.75. Currently Aspen Technology, Inc. is trading with a P/E of 27.45, and a forward P/E of 23.77. Average volume for Aspen Technology, Inc. is 559.02 and so far today it is 195071.

Performance in the last year for Aspen Technology, Inc. has been 14.30%. For EPS growth, Aspen Technology, Inc. has seen a growth of 26.30%, and is looking to grow in the next year to 8.08%. More long term stats show that EPS growth has been 73.40% over the last five years and could be 13.00% for the next five years. Aspen Technology, Inc. has seen sales growth quarter over quarter at -0.40%, with EPS growth quarter over quarter at 13.50%. The 20-day simple moving average is 2.52%, with the 200-day simple moving average coming to 19.80%.

Since the IPO date for Aspen Technology, Inc. on the 10/26/1994, Aspen Technology, Inc. has seen performance year to date to be 22.11%. With Aspen Technology, Inc. trading at 46.7, the dividend yield is *TBA, and the EPS is 1.68.

So could Aspen Technology, Inc., be undervalued? Well as said before P/E is 27.45. The PEG is 2.11, P/S is 7.78 and the P/B is at *TBA. The P/cash is 11.43, with P/free cash flow at 24.5.

Aspen Technology, Inc. ability to deal with debt shows that the current ratio is 0.8, and the quick ratio is 0.8. This is with long term debt/equity at *TBA, and total debt/equity at *TBA.

In terms of margins, Aspen Technology, Inc. has a gross margin of 89.70%, an operating margin of 44.80% and a profit margin of 29.60%.Payout ratio for Aspen Technology, Inc. is 0.00%. Return on assets come to 39.90% with return on investment coming to 216.50%.

Insider ownership for Aspen Technology, Inc., is at 0.60% and institutional ownership comes to *TBA. Outstanding shares are at 79.65. While shares float is 79.48. The float short is currently 7.67%, and short ratio is 10.91.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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