We’ve recently updated our valuation analysis.

Altair Engineering Valuation

Is ALTR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALTR?

Other financial metrics that can be useful for relative valuation.

ALTR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.9x
Enterprise Value/EBITDA181.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ALTR's PS Ratio compare to its peers?

The above table shows the PS ratio for ALTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average4.4x
BOX Box
4.3x11.7%US$4.0b
ASAN Asana
8.5x23.2%US$4.0b
NEWR New Relic
4.3x14.8%US$3.6b
NCR NCR
0.4x3.9%US$3.2b
ALTR Altair Engineering
6.9x8.4%US$3.8b

Price-To-Sales vs Peers: ALTR is expensive based on its Price-To-Sales Ratio (6.9x) compared to the peer average (4.4x).


Price to Earnings Ratio vs Industry

How does ALTR's PE Ratio compare vs other companies in the US Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.0%
n/an/an/a

Price-To-Sales vs Industry: ALTR is expensive based on its Price-To-Sales Ratio (6.9x) compared to the US Software industry average (4x)


Price to Sales Ratio vs Fair Ratio

What is ALTR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALTR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.9x
Fair PS Ratio4.7x

Price-To-Sales vs Fair Ratio: ALTR is expensive based on its Price-To-Sales Ratio (6.9x) compared to the estimated Fair Price-To-Sales Ratio (4.7x).


Share Price vs Fair Value

What is the Fair Price of ALTR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ALTR ($47.25) is trading above our estimate of fair value ($42.81)

Significantly Below Fair Value: ALTR is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ALTR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$47.25
US$56.88
+20.4%
12.4%US$63.00US$39.00n/a8
Nov ’23US$48.58
US$57.86
+19.1%
15.3%US$70.00US$39.00n/a7
Oct ’23US$44.22
US$64.71
+46.3%
16.3%US$75.00US$41.00n/a7
Sep ’23US$49.34
US$64.71
+31.2%
16.3%US$75.00US$41.00n/a7
Aug ’23US$59.20
US$61.83
+4.4%
17.4%US$75.00US$41.00n/a6
Jul ’23US$52.07
US$71.60
+37.5%
26.7%US$100.00US$41.00n/a5
Jun ’23US$53.97
US$75.80
+40.4%
17.6%US$100.00US$62.00n/a5
May ’23US$54.32
US$82.83
+52.5%
14.9%US$100.00US$62.00n/a6
Apr ’23US$63.80
US$85.00
+33.2%
12.5%US$100.00US$67.00n/a6
Mar ’23US$66.88
US$85.00
+27.1%
12.5%US$100.00US$67.00n/a6
Feb ’23US$62.06
US$89.83
+44.8%
8.1%US$100.00US$78.00n/a6
Jan ’23US$77.32
US$89.83
+16.2%
8.1%US$100.00US$78.00n/a6
Dec ’22US$71.92
US$89.14
+23.9%
7.8%US$100.00US$78.00n/a7
Nov ’22US$78.26
US$82.00
+4.8%
9.3%US$94.00US$72.00US$48.586
Oct ’22US$69.93
US$82.00
+17.3%
9.3%US$94.00US$72.00US$44.226
Sep ’22US$75.30
US$82.00
+8.9%
9.3%US$94.00US$72.00US$49.346
Aug ’22US$69.76
US$74.50
+6.8%
9.8%US$85.00US$64.00US$59.206
Jul ’22US$70.17
US$73.60
+4.9%
10.5%US$85.00US$64.00US$52.075
Jun ’22US$67.03
US$73.60
+9.8%
10.5%US$85.00US$64.00US$53.975
May ’22US$65.00
US$69.00
+6.2%
6.2%US$76.00US$64.00US$54.325
Apr ’22US$63.32
US$68.33
+7.9%
6.1%US$76.00US$64.00US$63.806
Mar ’22US$63.27
US$68.33
+8.0%
6.1%US$76.00US$64.00US$66.886
Feb ’22US$59.15
US$53.83
-9.0%
13.8%US$65.00US$42.00US$62.066
Jan ’22US$58.18
US$53.83
-7.5%
13.8%US$65.00US$42.00US$77.326
Dec ’21US$53.00
US$50.17
-5.3%
8.3%US$55.00US$42.00US$71.926
Nov ’21US$43.03
US$45.17
+5.0%
11.0%US$53.00US$37.00US$78.266

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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