Altair Stock Valuation

ALTR
 Stock
  

USD 52.07  0.43  0.82%   

How much is Altair Engineering worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Altair Engineering, is its stock price multiplied by the total number of shares outstanding, calculating Altair Engineering's enterprise value requires a different approach. It uses Altair Engineering's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 07/05/2022, Free Cash Flow is likely to grow to about 58 M, while Enterprise Value is likely to drop slightly above 4.9 B.
Altair Engineering shows a prevailing Real Value of $61.55 per share. The current price of the firm is $52.07. At this time, the firm appears to be undervalued. Our model approximates the value of Altair Engineering from analyzing the firm fundamentals such as Return On Equity of (1.77) %, profit margin of (1.65) %, and Current Valuation of 4.12 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Altair Engineering Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Altair Engineering's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Altair Most Recent Valuation Data

Price Book
6.62
EPS Estimate Next Quarter
0.11
Price Sales
7.67
EBITDA
43.2 M
Beta
1.54
Fiscal Year End
December
Industry
Software-Infrastructure
Undervalued
Today 52.07
Please note that Altair Engineering's price fluctuation is very steady at this time. Calculation of the real value of Altair Engineering is based on 3 months time horizon. Increasing Altair Engineering's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Altair Engineering is useful when determining the fair value of the Altair stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Altair Engineering. Since Altair Engineering is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Altair Stock. However, Altair Engineering'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.
61.55
Real Value
64.13
Upside
Estimating the potential upside or downside of Altair Engineering helps investors to forecast how Altair 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 Altair Engineering more accurately as focusing exclusively on Altair Engineering's fundamentals will not take into account other important factors:
Earnings
Estimates (3)
LowProjected EPSHigh
0.130.230.28
Details
Hype
Prediction
LowEstimated ValueHigh
49.4752.0554.63
Details
Naive
Forecast
LowNext ValueHigh
50.8253.3955.97
Details
7 Analysts
Consensus
LowTarget PriceHigh
80.0088.2095.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Altair Engineering's intrinsic value based on its ongoing forecasts of Altair Engineering's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Altair Engineering's closest peers. When choosing an evaluation method for Altair Engineering, 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.

Altair Valuation Drivers Correlation

Many accounts on the financial statements of Altair Engineering are highly interrelated and sometimes correlated. Consequently, when conducting Altair's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Altair
Click cells to compare fundamentals

Altair Valuation Trend

Knowing Altair Engineering's actual value is paramount for traders to make sound investment determinations. Altair Engineering's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Altair Engineering's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Altair Engineering'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.

Altair Market Cap

Altair Engineering is number one stock in market capitalization category among related companies. Market capitalization of Software—Infrastructure industry is presently estimated at about 3.56 Trillion. Altair Engineering adds roughly 4.11 Billion in market capitalization claiming only tiny portion of equities listed under Software—Infrastructure industry.
Capitalization  Valuation  Workforce  Total debt  Revenue

Altair Engineering Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Altair Engineering's current stock value. Our valuation model uses many indicators to compare Altair Engineering value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Altair Engineering competition to find correlations between indicators driving Altair Engineering's intrinsic value. More Info.
Altair Engineering is number one stock in price to earning category among related companies. It is number one stock in price to sales category among related companies fabricating about  0.26  of Price to Sales per Price to Earning. The ratio of Price to Earning to Price to Sales for Altair Engineering is roughly  3.84 . As of 07/05/2022, Price to Sales Ratio is likely to drop to 9.78. Comparative valuation analysis is a catch-all model that can be used if you cannot value Altair Engineering by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Altair Engineering'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 Altair Engineering'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 Altair Engineering'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 Altair Engineering and how it compares across the competition.

About Altair Engineering Valuation

The equity valuation mechanism determines the current worth of Altair Engineering on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Altair Engineering. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Altair Engineering based exclusively on its fundamental and basic technical indicators. By analyzing Altair Engineering'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 Altair Engineering'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 Altair Engineering. We calculate exposure to Altair Engineering's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Altair Engineering's related companies.
Last ReportedProjected for 2022
Gross Profit402.5 M376.4 M
Profit Margin(0.017) (0.0183) 
Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions in the areas of simulation, high-performance computing, data analytics, and artificial intelligence worldwide. Altair Engineering Inc. was incorporated in 1985 and is headquartered in Troy, Michigan. Altair Engineering operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 3050 people.

Altair Engineering Quarterly Enterprise Value

4.92 Billion

Share

Altair Engineering Valuation Growth Rates

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 Altair Engineering 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.
Quick Ratio1.19
Revenue Growth5.50%
Enterprise Value To Ebitda95.83
Enterprise Value To Revenue7.75

Altair Engineering Current Valuation Indicators

Valuation refers to the process of determining the present value of Altair Engineering and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Altair we look at many different elements of the entity such as Altair's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Altair Engineering'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 Altair Engineering'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 Altair Engineering, 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 Altair Engineering'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 Altair Engineering's worth.
Please continue to Trending Equities. Note that the Altair Engineering information on this page should be used as a complementary analysis to other Altair Engineering's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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When running Altair Engineering price analysis, check to measure Altair Engineering'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 Altair Engineering is operating at the current time. Most of Altair Engineering's value examination focuses on studying past and present price action to predict the probability of Altair Engineering's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Altair Engineering's price. Additionally, you may evaluate how the addition of Altair Engineering to your portfolios can decrease your overall portfolio volatility.
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Is Altair Engineering'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 Altair Engineering. If investors know Altair 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 Altair Engineering 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 YOY
-0.28
Market Capitalization
4.2 B
Quarterly Revenue Growth YOY
0.064
Return On Assets
0.0106
Return On Equity
-0.0229
The market value of Altair Engineering is measured differently than its book value, which is the value of Altair that is recorded on the company's balance sheet. Investors also form their own opinion of Altair Engineering's value that differs from its market value or its book value, called intrinsic value, which is Altair Engineering'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 Altair Engineering's market value can be influenced by many factors that don't directly affect Altair Engineering'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 Altair Engineering's value and its price as these two are different measures arrived at by different means. Investors typically determine Altair Engineering value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altair Engineering'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.