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I read an article in the New York Times this morning that had a passing mention of Autodesk (NASDAQ:ADSK). It was an interesting piece and after researching the company, Autodesk also looks compelling on a valuation basis.

Autodesk – “Autodesk, Inc. provides design software and service solutions to customers in architecture, engineering, and construction; manufacturing; and digital media and entertainment industries. It operates in four segments: Platform Solutions and Emerging Business (PSEB); Architecture, Engineering, and Construction (AEC); Manufacturing (MFG); and Media and Entertainment ((M&E))”. (Business description from Yahoo Finance).

8 reasons Autodesk is a strong buy at under $30 a share:

  1. It has fallen over 22% this year and could move higher once tax loss selling abates.
  2. It has a robust balance sheet with almost $6 a share in net cash on the books.
  3. ADSK is selling in the bottom third of its five-year valuation range based on P/S, P/CF and P/B.
  4. Autodesk could benefit greatly by the buzz generated by the acceleration of 3D printing in 2012 due to it being the premier design software company in the world.
  5. Even with the slow domestic economic growth, Autodesk is expected to grow revenue in double digits for both FY2011 and FY2012.
  6. The company has beat earnings estimates 11 of the last 12 quarters. Earnings estimates for FY2011 and FY2012 have risen in the last 60 days.
  7. Autodesk is selling some 30% under consensus analysts’ price targets of $39. S&P has a $40 price target on ADSK.
  8. Earnings are on an upward path. ADSK earned $1.32 a share in FY2010, is expected to make $1.72 for FY2011 and projected to produce $2.04 per share in earnings in FY2012.
Source: 8 Reasons To Pick Up Autodesk Before Year's End