ROK - Both The Opportunity And Valuation At ANSYS Are Eye-Popping
I'm a big believer in paying for quality, but it's hard not to pause at the 12x-plus revenue and 39x-plus PE multiples on ANSYS (ANSS) shares today. While ANSYS is an exceptional software company and is likely to see well-above average revenue growth and operating margins over the next decade, it's tough to comfortably model the growth it will take to justify that level of expectation - that's not saying that ANSYS can't do it, but not many software companies have lived up to that level of expectation.
What should investors do with the stock,