American Software Valuation
| AMSWA Stock | USD 10.37 0.14 1.33% |
At this time, the firm appears to be undervalued. American Software shows a prevailing Real Value of $12.38 per share. The current price of the firm is $10.37. Our model approximates the value of American Software from analyzing the firm fundamentals such as return on equity of 0.0808, and Profit Margin of 0.10 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting American Software's valuation include:
Price Book 2.8508 | Enterprise Value 269.8 M | Enterprise Value Ebitda 24.1642 | Price Sales 3.1327 | Trailing PE 33.9032 |
Undervalued
Today
Please note that American Software's price fluctuation is not too volatile at this time. Calculation of the real value of American Software is based on 3 months time horizon. Increasing American Software's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for American Software is useful when determining the fair value of the American stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Software. Since American Software is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Software's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 10.37 | Real 12.38 | Target 18.0 | Hype 10.39 | Naive 9.84 |
The real value of American Stock, also known as its intrinsic value, is the underlying worth of American Software Company, which is reflected in its stock price. It is based on American Software's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of American Software's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence American Software's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of American Software helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Software more accurately as focusing exclusively on American Software's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use American Software's intrinsic value based on its ongoing forecasts of American Software's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Software's closest peers. When choosing an evaluation method for American Software, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
American Software Investments |
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American Valuation Trend
Knowing American Software's actual value is paramount for traders to make sound investment determinations. American Software's real value is not only important for the investor to make better decisions but also for a more accurate overall view of American Software's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both American Software's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
American Market Cap
American Software is rated below average in market capitalization category among related companies. Market capitalization of Information Technology industry is presently estimated at about 42.49 Billion. American Software maintains roughly 349.14 Million in market capitalization contributing less than 1% to equities under Information Technology industry.American Software Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining American Software's current stock value. Our valuation model uses many indicators to compare American Software value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Software competition to find correlations between indicators driving American Software's intrinsic value. More Info.American Software is rated third in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.03 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for American Software is roughly 29.31 . As of April 25, 2024, Price To Book Ratio is expected to decline to 2.01. Comparative valuation analysis is a catch-all model that can be used if you cannot value American Software by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Software's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Software's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates American Software's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in American Software and how it compares across the competition.
About American Software Valuation
The stock valuation mechanism determines the current worth of American Software on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American Software. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Software based exclusively on its fundamental and basic technical indicators. By analyzing American Software's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of American Software's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Software. We calculate exposure to American Software's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Software's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 85.4 M | 54.1 M | |
| Pretax Profit Margin | 0.12 | 0.11 | |
| Operating Profit Margin | 0.1 | 0.08 | |
| Net Profit Margin | 0.1 | 0.08 | |
| Gross Profit Margin | 0.69 | 0.61 |
8 Steps to conduct American Software's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates American Software's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct American Software's valuation analysis, follow these 8 steps:- Gather financial information: Obtain American Software's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine American Software's revenue streams: Identify American Software's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research American Software's industry and market trends, including the size of the market, growth rate, and competition.
- Establish American Software's growth potential: Evaluate American Software's management, business model, and growth potential.
- Determine American Software's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate American Software's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of American Software represents a small ownership stake in the entity. As a stockholder of American, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
American Software Dividends Analysis For Valuation
As of April 25, 2024, Dividends Paid is expected to decline to about 10.1 M. In addition to that, Dividend Yield is expected to decline to 0.03. At present, American Software's Earnings Yield is projected to slightly decrease based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 37.72, whereas Retained Earnings are projected to grow to (18.6 M).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 17.1 M | 10.1 M | |
| Dividend Yield | 0.03 | 0.03 | |
| Dividend Payout Ratio | 1.28 | 0.85 | |
| Dividend Paid And Capex Coverage Ratio | 0.04 | 0.03 |
There are various types of dividends American Software can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of American shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from American Software directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American Software by the value of the dividends paid out.
American Software Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as American Software does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 34 M | |
| Quarterly Earnings Growth Y O Y | 0.293 |
American Software Current Valuation Indicators
Valuation refers to the process of determining the present value of American Software and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value American we look at many different elements of the entity such as American's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. American Software's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final American Software's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as American Software, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use American Software's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes American Software's worth.When determining whether American Software offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Software's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of American Software Stock. Outlined below are crucial reports that will aid in making a well-informed decision on American Software Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Software. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in housing. For information on how to trade American Stock refer to our How to Trade American Stock guide.You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Complementary Tools for American Stock analysis
When running American Software's price analysis, check to measure American Software's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Software is operating at the current time. Most of American Software's value examination focuses on studying past and present price action to predict the probability of American Software's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Software's price. Additionally, you may evaluate how the addition of American Software to your portfolios can decrease your overall portfolio volatility.
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Is American Software's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Software. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Software listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.293 | Dividend Share 0.44 | Earnings Share 0.31 | Revenue Per Share 3.523 | Quarterly Revenue Growth (0.07) |
The market value of American Software is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Software's value that differs from its market value or its book value, called intrinsic value, which is American Software's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Software's market value can be influenced by many factors that don't directly affect American Software's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Software's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.