ADSK – Market expectations are for Uniform ROA to expand to new peaks, but management may have concerns about supply chain pressures, product capabilities, and guidance
February 16, 2022
- Autodesk, Inc. (ADSK) currently trades above corporate but below historical averages relative to Uniform earnings, with a 45.2x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to expand to new peaks, accompanied by 3% Uniform asset growth.
- Meanwhile, analysts expect Uniform ROA to improve to 64% in 2023, accompanied by 4% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $115, representing significant equity downside for the firm.
- Moreover, the firm’s most recent earnings call suggests management may have concerns about supply chain pressures, product capabilities, and guidance.