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GuruFocus has detected 4 Warning Signs with Aspen Technology Inc $AZPN.
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Aspen Technology Inc (NAS:AZPN)
EV-to-EBITDA
20.43 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Aspen Technology Inc's enterprise value is $4,549.0 Mil. Aspen Technology Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $222.7 Mil. Therefore, Aspen Technology Inc's EV/EBITDA ratio for today is 20.43.

AZPN' s EV-to-EBITDA Range Over the Past 10 Years
Min: -375.1   Max: 124.7
Current: 20.43

-375.1
124.7

During the past 13 years, the highest EV/EBITDA Ratio of Aspen Technology Inc was 124.70. The lowest was -375.10. And the median was 15.10.

AZPN's EV-to-EBITDA is ranked lower than
68% of the 1910 Companies
in the Global Software - Application industry.

( Industry Median: 13.76 vs. AZPN: 20.43 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Aspen Technology Inc's stock price is $60.55. Aspen Technology Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $1.80. Therefore, Aspen Technology Inc's P/E Ratio for today is 33.64.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Aspen Technology Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4549.041/222.7
=20.43

Aspen Technology Inc's current Enterprise Value is $4,549.0 Mil.
Aspen Technology Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 52.688 (Jun. 2016 ) + 57.439 (Sep. 2016 ) + 58.487 (Dec. 2016 ) + 54.086 (Mar. 2017 ) = $222.7 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Aspen Technology Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=60.55/1.8
=33.64

Aspen Technology Inc's share price for today is $60.55.
Aspen Technology Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.41 (Jun. 2016 ) + 0.44 (Sep. 2016 ) + 0.48 (Dec. 2016 ) + 0.47 (Mar. 2017 ) = $1.80.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Aspen Technology Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ev2ebitda 14.0621.3310.32-11.15-44.94-354.3839.7529.7919.5613.97

Aspen Technology Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 17.4417.5319.5615.0714.2314.0913.9716.4419.110.00
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