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Aspen Technology, Inc. (NAS:AZPN)
Price-to-Free-Cash-Flow Ratio
24.20 (As of Today)

As of today, Aspen Technology, Inc.'s share price is $40.33. Aspen Technology, Inc.'s Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.67. Hence, Aspen Technology, Inc.'s Price-to-Free-Cash-Flow Ratio for today is 24.20.

AZPN' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 5.1   Max: 109.33
Current: 24.2

5.1
109.33

During the past 13 years, Aspen Technology, Inc.'s highest Price-to-Free-Cash-Flow Ratio was 109.33. The lowest was 5.10. And the median was 22.42.

AZPN's Price-to-Free-Cash-Flow ratiois ranked higher than
52% of the 874 Companies
in the Global Software - Application industry.

( Industry Median: 19.50 vs. AZPN: 24.20 )

Aspen Technology, Inc.'s Free Cash Flow per Share for the three months ended in Dec. 2013 was $0.48. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.67.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Aspen Technology, Inc. was 27.50% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 55.60% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 52.00% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 10.70% per year.

During the past 13 years, Aspen Technology, Inc.'s highest 3-Year average Free Cash Flow per Share Growth Rate was 55.60% per year. The lowest was -35.00% per year. And the median was 5.50% per year.


Definition

Aspen Technology, Inc.'s Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=40.33/1.67
=24.15

Aspen Technology, Inc.'s Share Price of today is $40.33.
Aspen Technology, Inc.'s Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.6 (Mar. 2013 ) + 0.33 (Jun. 2013 ) + 0.26 (Sep. 2013 ) + 0.48 (Dec. 2013 ) = $1.67.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Aspen Technology, Inc. Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
pfcf 10.2319.26109.3325.0020.4628.4328.6628.1621.8419.72

Aspen Technology, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
pfcf 25.4525.1421.6121.8421.9021.1024.2819.7222.2925.03
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