ANSYS, Inc. (ANSS) DCF Valuation
Transparent DCF models put ANSYS, Inc. (ANSS)'s fair value in a range of $128.00 – $187.74 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $374.30 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $374.30, the market is pricing in roughly +20.2%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +14.0%. The price is betting on acceleration above its track record.
Current Price
$374.30
Fair-Value Range
$128.00 – $187.74
Market-Implied Growth
+20.2%/yr
vs +14.0% 5Y actual
ANSS DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $644.1M · 0.09B shares · net cash $692.5M
Estimated Fair Value
$128.00
-65.8% vs $374.30
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $374.30; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $157 | $165 | $174 | $185 | $198 |
| 9.0% | $136 | $141 | $147 | $154 | $163 |
| 10.0% | $120 | $124 | $128 | $133 | $138 |
| 11.0% | $107 | $110 | $113 | $117 | $121 |
| 12.0% | $97.29 | $99.34 | $102 | $104 | $107 |
About ANSYS, Inc.
ANSYS, Inc. provides advanced engineering simulation software and related services to a global market. Central to its offerings is ANSYS Workbench, a foundational platform that integrates various multiphysics simulation capabilities. This environment empowers engineers to accurately model intricate interactions among structural components, thermal effects, fluid dynamics, electronic systems, and optical elements. Beyond this core, the company delivers specialized tools such as high-performance computing suites, software for comprehensive power analysis and optimization in electronic designs (addressing budgets, delivery integrity, and noise generation), and robust structural analysis programs for product development and refinement. Other key solutions include electronics field simulation for designing electromechanical devices, the SCADE suite for embedded software simulation, code generation, and automated certification, and fluid dynamics programs for modeling fluid flow and associated physical phenomena. Furthermore, ANSYS offers Granta products for material intelligence, specialized tools for photonic design and simulation, and capabilities for optical sensor, closed-loop, and real-time simulations, alongside safety-certified embedded software. To facilitate early-stage design exploration, the Discovery product family is available, complemented by an academic suite designed for research and educational environments, enabling students to gain proficiency with their simulation technologies. ANSYS caters to a diverse global clientele including engineers, designers, researchers, and students. Their solutions are vital across numerous sectors such as aerospace and defense, automotive, construction, consumer goods, energy, healthcare, high-tech manufacturing, industrial equipment, materials and chemical processing, and sports. Founded in 1970, the company's corporate headquarters are located in Canonsburg, Pennsylvania.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Ajei S. Gopal