Analyses / ADSK
Design software leader down 8% on session; elevated valuation vs. growth; insider buying positive; watch liquidity metrics.
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The Thesis
▲ Bull Case
12.9% revenue growth, 11.5% EPS growth, 91% gross margin reflect pricing power & recurring SaaS model strength. Insider buying (31 buys vs. 12 sells YTD) signals conviction. Down 34% from 52w high offers entry for patient growth investors; AI/automation tailwinds in design workflows under-monetized.
▼ Bear Case
Forward P/E 40.5x vs. 12.9% growth = premium valuation; PEG absent but suggests stretched. Current ratio 0.85 & quick ratio 0.69 flag tight liquidity. Down 8% today in broader selloff; if growth slows or macro tightens, multiples compression risk. High beta (1.3) amplifies downside.
Valuation
overvalued in near term; fair-to-premium on 3y growth — score 58/100
Trailing P/E 27.7x is reasonable for 12.9% revenue growth & 11.5% EPS growth, but forward P/E 40.5x is stretched (implies 40% EPS growth over next 12m, not supported by historical trends). P/S 6.3x and EV/EBITDA 28.1x are both premium for software; however, 91% gross margin & 21.9% operating margin justify above-market multiples. Price-to-FCF 19.2x signals moderate efficiency. Pullback from 52w high ($329) has trimmed excess but multiple compression risk remains if growth decelerates.
Technical Levels
Support · $185.50 (52w low) · $200.00 (Recent bounce zone) · $216.20 (Today's intraday low)
Resistance · $232.14 (Today's intraday high) · $237.52 (Previous close (gap down)) · $280.00 (Psychological mid-range) · $329.09 (52w high)
RSI: unavailable
Financial Health
Score 65/100. Profitability metrics strong (91% gross, 22% operating margins signal pricing power and operating leverage). Liquidity metrics (current 0.85, quick 0.69) below 1.0 flag working-capital tightness — typical for SaaS (deferred revenue inflates liabilities) but worth monitoring for cash flow stability. Debt data missing; recommend checking 10-Q for debt levels and covenant compliance.
Catalysts
| Q3 2024 earnings (approx. Sept) | ~6–8 weeks | high |
| AI/generative design feature releases (Copilot, etc.) | ongoing through H2 2024 | medium |
| Macro sentiment on capital spending & SaaS valuations | near-term (Fed policy, tech earnings trend) | high |
| Competitive wins/losses vs. Figma, open-source alternatives | ongoing | medium |
Risk Flags
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ADSK FAQ
Is ADSK a buy right now?
Autodesk Inc's current read is a Growth / Software-as-a-Service (SaaS) setup with 62 confidence over a 6–12 months horizon. Valuation: overvalued in near term; fair-to-premium on 3y growth. See the full bull and bear case above, or run a live analysis for the exact entry, target and stop.
Is ADSK overvalued?
overvalued in near term; fair-to-premium on 3y growth (valuation score 58/100). Trailing P/E 27.7x is reasonable for 12.9% revenue growth & 11.5% EPS growth, but forward P/E 40.5x is stretched (implies 40% EPS growth over next 12m, not supported by historical trends). P/S 6.3x and EV/EBITDA 28.1x are both premium for software; however, 91% gross margin & 21.9% operating margin justify above-market multiples. Price-to-FCF 19.2x signals moderate efficiency. Pullback from 52w high ($329) has trimmed excess but multiple compression risk remains if growth decelerates.
What are the risks of buying ADSK?
Forward P/E 40.5x vs. 12.9% growth = premium valuation; PEG absent but suggests stretched. Current ratio 0.85 & quick ratio 0.69 flag tight liquidity. Down 8% today in broader selloff; if growth slows or macro tightens, multiples compression risk. High beta (1.3) amplifies downside.