| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 186.20 | -52 |
| Intrinsic value (DCF) | 134.53 | -65 |
| Graham-Dodd Method | 45.20 | -88 |
| Graham Formula | 99.40 | -74 |
ANSYS, Inc. is a global leader in engineering simulation software, providing advanced multiphysics simulation solutions that enable engineers and designers to optimize product performance across industries such as aerospace, automotive, healthcare, and high-tech. Founded in 1970 and headquartered in Canonsburg, Pennsylvania, ANSYS offers a comprehensive suite of simulation tools, including ANSYS Workbench, high-performance computing, structural analysis, and electronics simulation. The company serves a diverse clientele, from Fortune 500 companies to academic institutions, helping them innovate through virtual prototyping and predictive modeling. With a strong focus on research and development, ANSYS continues to drive digital transformation in engineering, making it a critical player in the $300+ billion simulation software market. Its solutions are widely adopted for their accuracy, scalability, and integration capabilities, reinforcing its position as a key enabler of Industry 4.0 and smart manufacturing.
ANSYS presents a compelling investment opportunity due to its dominant position in the high-growth engineering simulation software market, with a market cap of approximately $30 billion. The company boasts strong financials, including $2.54 billion in revenue and $575.7 million in net income for the latest fiscal year, supported by robust operating cash flow of $795.7 million. Its zero dividend policy suggests reinvestment in innovation, aligning with long-term growth in sectors like autonomous vehicles and renewable energy. However, investors should note its high beta (1.214), indicating volatility relative to the market, and exposure to cyclical industries like aerospace and automotive. The lack of dividends may also deter income-focused investors. Overall, ANSYS is well-positioned to benefit from increasing demand for simulation-driven design, but macroeconomic risks in its key verticals warrant caution.
ANSYS holds a competitive edge through its deeply integrated multiphysics simulation platform, which combines structural, fluid, thermal, and electronic analysis into a unified environment—a rarity in the fragmented simulation software market. Its ANSYS Workbench framework is widely regarded as the industry standard, offering superior interoperability and scalability compared to niche competitors. The company’s focus on high-performance computing (HPC) and cloud-based solutions further differentiates it, catering to complex use cases like autonomous systems and 5G infrastructure. ANSYS also benefits from a sticky customer base, with long-term contracts in regulated industries (e.g., aerospace) where switching costs are high. However, it faces pressure from open-source alternatives (e.g., Elmer) in academic settings and lower-cost rivals like Altair in certain verticals. Its acquisition strategy (e.g., recent purchases in optical and material simulation) helps maintain technological leadership but integration risks persist. While ANSYS dominates high-end simulation, competitors with vertical-specific solutions (e.g., Dassault for automotive) pose challenges in targeted segments.