One-glance verdict
Undervalued
$302.68 our estimate vs market $217.90
Wall Street consensus: $315.37 (4.2% higher than our fair-value estimate)
28% below our estimate, below the bear case
Fundamentals snapshot
Autodesk, Inc.
ADSK · NMS · Technology · Software - Application
Current price
$217.90
52-week range
$185.50 - $326.87
Market cap
$45.54B
Balance sheet
Healthy
25.27x Strong cushion
Net cash $450.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 8.1% last year.
- Reward Returns 53.9% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Insider ownership is only 0.2% (peer median: 0.3%).
What this company does
Autodesk, Inc.
Autodesk creates the essential 3D design software used by architects, engineers, and animators to build everything from cars and skyscrapers to video games and movie special effects. The company makes most of its money from subscriptions, which generates recurring revenue (predictable income that comes in regularly, like a streaming service). This is a powerful business model because once professionals learn and depend on Autodesk's software for their projects, they are very likely to remain paying customers for a long time.
How the company got here
Autodesk was started in 1982 by a group of programmers who saw an opportunity to create design software for personal computers, which were just becoming popular. Their first and most famous product, AutoCAD, was a groundbreaking tool that let people create precise digital 2D and 3D drawings, replacing manual drafting. This made professional-grade design accessible to many more people and became the industry standard. Over the years, Autodesk grew by creating more specialized software for different industries and by acquiring other companies, like Revit, which brought in key technology for 3D building design. A major turning point was shifting from selling one-time software licenses to a subscription model, where customers pay a recurring fee for access to the latest versions and cloud services.
What it actually does
Autodesk makes software that helps people design and create things on a computer before they are built in the real world. Think of it as a digital toolbox for architects, engineers, construction professionals, product designers, and even filmmakers. For example, an architect can use Autodesk software to design every detail of a skyscraper, from the floor plans to the plumbing systems, in a 3D model. A car company can design and test a new engine part on the computer, and a video game developer can create lifelike characters and worlds for a new game.
Architecture, Engineering & Construction (AEC)
This is Autodesk's largest business area, making up about half of its sales. It provides software for professionals who design, build, and manage buildings and infrastructure like roads and bridges. The flagship product here is Revit, a tool for Building Information Modeling (BIM), which allows teams to create a single, intelligent 3D model of a project that everyone can work on together. This helps avoid errors and makes the entire construction process more efficient, from the initial design to the final building operations.
AutoCAD and AutoCAD LT
This segment includes Autodesk's original and most famous product, AutoCAD, along with its more streamlined version, AutoCAD LT. It's a fundamental tool for 2D and 3D computer-aided design (CAD) and is used across many different industries for creating precise technical drawings and models. Even with the growth of more specialized software, this family of products remains a significant part of the business, contributing more than a quarter of the company's revenue. Professionals like architects, engineers, and construction managers rely on it for drafting detailed plans and designs.
Manufacturing
This part of the business provides software for people who design and make physical products, like cars, industrial machinery, and consumer goods. A key product is Fusion, a cloud-based tool that combines design, engineering, and manufacturing into one platform. This allows designers and engineers to create a 3D model of a product, simulate how it will work, and even prepare it for manufacturing, all within the same software. This segment represents a substantial portion of Autodesk's business, at just under 20% of total sales.
Media & Entertainment
This is a smaller but well-known part of Autodesk's business that creates tools for visual effects artists, game developers, and animators. Their software, such as Maya and 3ds Max, is used to create the stunning visual effects in blockbuster movies, design characters and worlds for popular video games, and produce animated shows. For many years, films that won the Academy Award for Best Visual Effects used Autodesk software. While it's the smallest of their main business lines, it's a leader in the creative industry.
What management is betting on now
Autodesk is heavily focused on the shift to cloud-based platforms and artificial intelligence (AI). They are connecting their design software with tools for the actual "making" or construction process, aiming to create seamless workflows for entire industries, like construction and manufacturing. Management believes that AI will become a crucial partner for their customers, helping to automate tasks and allowing designers to be more creative and efficient. The company sees its vast amount of design and engineering data as a key advantage in developing specialized AI that understands the physical world.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$199.00M
FY2025 Q4
$678.00M
FY2026 Q1
$556.00M
FY2026 Q2
$451.00M
FY2026 Q3
$430.00M
FY2026 Q4
$972.00M
FY2027 Q1
$876.00M
FY2027 Q2
$561.00M
Revenue
$2.05B
Net income
$492.00M
Diluted EPS
2.33
Operating cash flow
$575.00M
Free cash flow
$561.00M
Fetching…
Sources
Revenue
$1.93B
Net income
$491.00M
Diluted EPS
2.32
Operating cash flow
$893.00M
Free cash flow
$876.00M
Fetching…
Sources
Revenue
$1.96B
Net income
$316.00M
Diluted EPS
1.47
Operating cash flow
$989.00M
Free cash flow
$972.00M
Fetching…
Sources
Revenue
$1.85B
Net income
$343.00M
Diluted EPS
1.60
Operating cash flow
$439.00M
Free cash flow
$430.00M
Fetching…
Sources
Revenue
$1.76B
Net income
$313.00M
Diluted EPS
1.46
Operating cash flow
$460.00M
Free cash flow
$451.00M
Fetching…
Sources
Revenue
$1.63B
Net income
$152.00M
Diluted EPS
0.70
Operating cash flow
$564.00M
Free cash flow
$556.00M
Fetching…
Sources
Revenue
$1.64B
Net income
$303.00M
Diluted EPS
1.39
Operating cash flow
$692.00M
Free cash flow
$678.00M
Fetching…
Sources
Revenue
$1.57B
Net income
$275.00M
Diluted EPS
1.27
Operating cash flow
$209.00M
Free cash flow
$199.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $302.68 vs current price $217.90
Wall Street consensus is the average analyst price target: $315.37 (4.2% higher than our fair-value estimate).
Our most-likely fair value is $302.68 a share — about 38.9% above today's price of $217.90, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $450.0M - more cash than debt. Interest coverage 25.3x.
Net debt
$-450.00M
Interest coverage
25.27x
Autodesk, Inc.'s profit covers its interest bill about 25.3 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
ADSK
BASELINE
Autodesk, Inc.
Total debt $3.70B Interest coverage 25.27x This is the baseline the peer rows are being compared against.
Total debt $7.08B Interest coverage 33.10x +31% vs ADSK Carries about 1.3x more debt cushion than ADSK.
Total debt $1.61B Interest coverage 12.96x -49% vs ADSK Carries about 1.9x less debt cushion than ADSK.
Total debt $1.27B Interest coverage 23.67x -6% vs ADSK Has roughly the same debt cushion as ADSK.
Total debt $3.93B Interest coverage 33.13x +31% vs ADSK Carries about 1.3x more debt cushion than ADSK.
What you should know
The case for and against ADSK
3 Rewards
1 Risk
Rewards
-
Revenue grew 8.1% last year.
-
Returns 53.9% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Insider ownership is only 0.2% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.26x
Forward P/E
15.33x
P/B
13.46x
P/S
5.85x
EV/EBITDA
19.73x
PEG ratio
0.84x
Profitability
How much profit each dollar creates
Gross margin
92.5%
Operating margin
29.2%
Net margin
21.1%
ROE
53.9%
ROA
11.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.10x
Current ratio
0.85x
Quick ratio
0.73x
Total debt
$3.70B
Total cash
$4.16B
Growth
How the business has been compounding
Revenue TTM
$7.79B
Revenue 5Y CAGR
13.2%
EPS TTM
7.71
EPS 5Y CAGR
11.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.90B
Free CF TTM
$2.41B
FCF margin
30.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2005-03-22