AMSWA
American Software Inc
Price:  
10.95 
USD
Volume:  
121,470
United States | Software

AMSWA Fair Value

-60.6 %
Upside

What is the fair value of AMSWA?

As of 2025-07-10, the Fair Value of American Software Inc (AMSWA) is 4.32 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 10.95 USD, the upside of American Software Inc is -60.6%.

Is AMSWA a good investment?

With the market price of 10.95 USD and our fair value calculation, American Software Inc (AMSWA) is not a good investment. Investing in AMSWA stocks now will result in a potential loss of 60.6%.

10.95 USD
Stock Price
4.32 USD
Fair Price
FAIR VALUE CALCULATION

AMSWA Fair Value

Peter Lynch's formula is:

AMSWA Fair Value
= Earnings Growth Rate x TTM EPS
AMSWA Fair Value
= 13.6 x 0.32
AMSWA Fair Value
= 4.32

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
04-202004-202104-202204-202304-20245Y Avg
Net income6.78.112.810.411.3710
YoY growth-1.5%20.9%58%-18.8%9.4%13.6%

AMSWA Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
ChannelAdvisor Corp6681.332.1939.4%
Rand Worldwide Inc4970.11.52-89.7%
Zix Corp486-0.1-0.56-106.6%
Mitek Systems Inc4630.37.31-28%
Bitfarms Ltd6280.10.53-70.5%
eGain Corp1860.12.65-61.1%
Cheetah Mobile Inc14443.930.65553.6%
Triterras Inc136--100%
NetSol Technologies Inc4200.11-96.8%
Dmg Blockchain Solutions Inc55-0.1-0.46-270%

AMSWA Fair Value - Key Data

Market Cap (mil)369
P/E34.5x
Forward P/E29.6x
EPS0.32
Avg earnings growth rate13.6%
TTM earnings11

AMSWA Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.