Apart from having good financials and prospects, we believe Autodesk is undervalued mainly because of its position in the Nasdaq index. The market risk, which is characterised by the benchmark’s performance, can be rewarding if the benchmark significantly outperforms. Good examples are the US benchmark indices, in particular the Nasdaq, which returned more than 70% over the four-year holding period in our portfolio. We believe that buying any stock in the Nasdaq that performs in line with expectations at the least, has a high chance of outperforming the benchmark itself as it would enjoy gains from both the general market movement and company-specific expectation beats.
Maintaining an API architecture for its software has facilitated third-party development and won fans
Nasdaq-listed Autodesk is a global software and multimedia company that caters to designers in the architecture, engineering, construction, manufacturing, media, education and entertainment industries. The company’s product offerings are focused on four primary product families, which are architecture, engineering and construction (AEC), AutoCAD and AutoCAD LT, manufacturing, and media and entertainment (M&E). Autodesk, through its subscription plans, represents a hybrid of desktop software and cloud functionality, which provides a device-independent collaborative design workflow for designers and their stakeholders. Autodesk is trading at US$255.26 ($343) per share, giving it a market cap of around US$55 billion.
