| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 130.50 | -48 |
| Intrinsic value (DCF) | 192.86 | -24 |
| Graham-Dodd Method | 14.00 | -94 |
| Graham Formula | 80.20 | -68 |
Autodesk, Inc. (LSE: 0HJF.L) is a global leader in 3D design, engineering, and entertainment software, serving industries such as architecture, engineering, construction, manufacturing, and media. Headquartered in San Rafael, California, Autodesk provides essential tools like AutoCAD, BIM 360, Fusion 360, and Maya, which enable professionals to streamline design, simulation, and production workflows. The company operates on a subscription-based model, ensuring recurring revenue while continuously innovating its cloud-based and AI-driven solutions. With a market cap exceeding $63 billion, Autodesk dominates the CAD (Computer-Aided Design) and BIM (Building Information Modeling) markets, critical for infrastructure and industrial digitization. Its software is widely adopted by Fortune 500 companies and SMEs alike, reinforcing its sector relevance. Autodesk’s focus on sustainability and digital transformation aligns with global trends toward smart manufacturing and green construction, positioning it as a key enabler of Industry 4.0.
Autodesk presents a compelling investment case due to its strong market position, recurring revenue model, and exposure to high-growth sectors like AEC (Architecture, Engineering, Construction) and digital manufacturing. The company’s transition to cloud-based subscriptions has improved revenue predictability, with FY2025 revenue reaching $6.13 billion and net income of $1.11 billion. However, risks include competition from lower-cost alternatives, reliance on macroeconomic conditions in construction and manufacturing, and a high beta (1.473), indicating volatility. The lack of dividends may deter income-focused investors, but growth-oriented portfolios could benefit from Autodesk’s innovation in AI and automation. Operating cash flow of $1.6 billion and manageable debt ($2.56 billion against $1.6 billion cash) suggest financial stability.
Autodesk’s competitive advantage lies in its entrenched ecosystem, brand recognition, and industry-specific solutions. Its AutoCAD and Revit platforms are de facto standards in AEC, while Fusion 360 competes aggressively in the CAM/CAE space against Dassault and PTC. The shift to cloud-based tools (e.g., BIM 360) enhances stickiness and cross-selling opportunities. However, competitors like Dassault Systèmes offer broader PLM (Product Lifecycle Management) integration, and Siemens’ Solid Edge provides cost advantages in mid-market manufacturing. Autodesk’s media/entertainment tools (Maya, 3ds Max) face pressure from open-source alternatives like Blender. Pricing remains a concern, as SMEs may opt for cheaper alternatives like SketchUp. Despite this, Autodesk’s R&D focus (evident in AI-driven features like generative design) and partnerships (e.g., with Microsoft Azure) strengthen its long-term positioning. Its lack of hardware dependency (unlike Nemetschek) is a structural advantage.