Autodesk At $300: Premium Valuation Or Hidden Bargain?

Summary

• I reiterate my 'Buy' rating for Autodesk due to its robust profitability, high margins, and effective capital allocation through acquisitions and share buybacks.
• Autodesk's financial performance is strong, with $6.1 billion in revenue, 92% gross margins, and significant operating leverage leading to a $1.1 billion net profit.
• Despite a slight underperformance compared to the S&P 500, Autodesk's valuation remains fair relative to peers like Procore, given its superior profitability and steady growth.
• Key risks include macroeconomic factors affecting Autodesk's capex-heavy customer base, but the company's products remain mission-critical, providing resilience against economic turbulence.

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I analyzed Autodesk (NASDAQ:ADSK) over a year ago in March 2024:

• Autodesk: Great Economics For A Long-Term Investment

In this analysis, I issued a ‘Buy’ rating for Autodesk for long-term investors. I highlighted characteristics such as the company’s robust profitability profile, rebounding free

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.