Autodesk, Inc. (NASDAQ:ADSK)

Stock is currently undervalued and has a valuation of $39

The purchase of Household is taking Autodesk into a direction its been inching towards for sometime now - cloud computing. If it does as well in that arena as it has in its more traditional areas, it's going to make some good money. What also may happen is that Autodesk will make itself more attractive as a merger or buy-out candidate for some larger player interested in a fast ramp-up. Either way, they're gonna make money. I'd buy now.

low peg

ADSK has wide moat with enduring customer stickiness. To deem a company lisk Adobe as main compettitor is a mistake. Architects and engineers will perpetually use AutoCAD and BIM as standard applications for the construction industry. Although emerging market growth is compelling, boot leg is a hurdle to cross as Asian do not value intellectual properties.

Trending up nicely and should continue.

renewal rates are at record levels and mulit-year subscriptions are up. ADSK's customers are seeing value, and so am I.

Here's the buy rec:
http://www.fool.com/investing/general/2011/08/24/rising-star-buy-autodesk.aspx

Leader in CAD industry; consistently profitable; no debt. way oversold on a good report!

to high pe its worth the half

I use Autodesk products everyday and know that they are charging more every year to do so. Autodesk became the software of choice years ago because it could be copied for free - An office with 20 architects used a single license. Today, that same office of 20 will have 20-40 licenses (half for AutoCad, the other half for Revit). There is better software available, but it's Autodesk products that everyone is familiar with. When the construction industry rebounds, and architects/engineers are hiring - Autodesk profits will go through the roof.

A few lean years left, but I'm betting real money on this one.

ADSK should outperform both up or down as they have a 2. 2 beta co-efficent

As long as industry and manufacturing exists, there will always be a need for this company's products.

This software stalwart is the central software for multiple markets (architecture, design, CG for film, television, and games). Leveraging its customer awareness and customer base will continue to enable its new products and acquisitions to be quickly adopted by the users in those markets moving forward.

Autodesk has diversified from offering a single CAD solution to having several platforms to offers. Also, their recent acquisition of ALGOR and Moldflow software allows them to sell ancillary products to owners of competing CAD software.

http://news.morningstar.com/articlenet/article.aspx?id=271973

Looks really overbought. P/E and all other value metrics are excessive. Good company, but fundamentals do not support the valuation.

Cyclical action in an uncertain market in an adverse environment.

Civil 3D baby

Autodesk's main advantage in today's market is its foothold in colleges. If any engineering, agricultural, etc. wants to hire a person who has been through college, the company must use Autodesk's program or suffer the costs of retraining its employees to use another program. Once the company is hooked onto Autodesk's program, there is a high switching cost along with the retraining cost of the company's employees. In turn, the retraining costs and its foothold in colleges give Autodesk a wide economic moat in today's market. However, Autodesk's wide economic moat is in today's 2D market. They still do not have a wide economic moat in the 3D market of tomorrow. As companies start to switch to 3D imaging, they will inevitably choose a cheaper, easier to learn program like Dassault's or another competitor's product.The companies that have already started switching to 3D have gone with Dassault's program. Autodesk will still have a wide moat in the 2D market, but most likely, the 3D market of tomorrow will go to some other company.