AutoDesk operates as a design software and services company worldwide. The Company serves customers in the architecture, engineering and construction; manufacturing, and digital media, consumer and entertainment industries. The company was founded in 1982 and is based in San Rafael, California.
ADSK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ADSK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Autodesk Inc ranked in the 28th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 64.17%. As for the metrics that stood out in our discounted cash flow analysis of Autodesk Inc, consider:
As a business, ADSK is generating more cash flow than 86.03% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately only 12.7% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ADSK's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 47.1% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AKAM, MANT, CRUS, EXTR, and EEFT can be thought of as valuation peers to ADSK, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
SAN RAFAEL, Calif., Jan. 12, 2021 /PRNewswire/ -- Autodesk, Inc. (Nasdaq: ADSK) today announced the majority of ENR-ranked top contractors building critical infrastructure such as highways, piers, airports, railways and tunnels are now using Autodesk Construction Cloud to seamlessly…
Over the past three months, shares of Autodesk (NASDAQ:ADSK) increased by 30.93%. Before having a look at the importance of debt, let us look at how much debt Autodesk has.Autodesk's Debt According to the Autodesk's most recent financial statement as reported on December 4, 2020, total debt is at $1.64 billion, with $1.64 billion in long-term debt and $0.00 in current debt. Adjusting for $1.54 billion in cash-equivalents, the company has a net debt of $99.60 million.Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents include cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current de...