ADBE Relative Valuation
ADBE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ADBE is overvalued; if below, it's undervalued.
Historical Valuation
Adobe Inc (ADBE) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.34 is considered Undervalued compared with the five-year average of 29.19. The fair price of Adobe Inc (ADBE) is between 609.10 to 946.98 according to relative valuation methord. Compared to the current price of 326.78 USD , Adobe Inc is Undervalued By 46.35%.
Relative Value
Fair Zone
609.10-946.98
Current Price：326.78
46.35%
Undervalued
14.43
PE
1Y
3Y
5Y
Trailing
Forward
11.03
EV/EBITDA
Adobe Inc. (ADBE) has a current EV/EBITDA of 11.03. The 5-year average EV/EBITDA is 21.75. The thresholds are as follows: Strongly Undervalued below 8.13, Undervalued between 8.13 and 14.94, Fairly Valued between 28.56 and 14.94, Overvalued between 28.56 and 35.37, and Strongly Overvalued above 35.37. The current Forward EV/EBITDA of 11.03 falls within the Undervalued range.
11.80
EV/EBIT
Adobe Inc. (ADBE) has a current EV/EBIT of 11.80. The 5-year average EV/EBIT is 23.85. The thresholds are as follows: Strongly Undervalued below 8.63, Undervalued between 8.63 and 16.24, Fairly Valued between 31.45 and 16.24, Overvalued between 31.45 and 39.06, and Strongly Overvalued above 39.06. The current Forward EV/EBIT of 11.80 falls within the Undervalued range.
5.40
PS
Adobe Inc. (ADBE) has a current PS of 5.40. The 5-year average PS is 10.88. The thresholds are as follows: Strongly Undervalued below 4.07, Undervalued between 4.07 and 7.47, Fairly Valued between 14.28 and 7.47, Overvalued between 14.28 and 17.69, and Strongly Overvalued above 17.69. The current Forward PS of 5.40 falls within the Undervalued range.
13.44
P/OCF
Adobe Inc. (ADBE) has a current P/OCF of 13.44. The 5-year average P/OCF is 25.74. The thresholds are as follows: Strongly Undervalued below 9.91, Undervalued between 9.91 and 17.83, Fairly Valued between 33.66 and 17.83, Overvalued between 33.66 and 41.57, and Strongly Overvalued above 41.57. The current Forward P/OCF of 13.44 falls within the Undervalued range.
13.92
P/FCF
Adobe Inc. (ADBE) has a current P/FCF of 13.92. The 5-year average P/FCF is 27.14. The thresholds are as follows: Strongly Undervalued below 10.33, Undervalued between 10.33 and 18.74, Fairly Valued between 35.55 and 18.74, Overvalued between 35.55 and 43.96, and Strongly Overvalued above 43.96. The current Forward P/FCF of 13.92 falls within the Undervalued range.
Adobe Inc (ADBE) has a current Price-to-Book (P/B) ratio of 11.66. Compared to its 3-year average P/B ratio of 14.20 , the current P/B ratio is approximately -17.86% higher. Relative to its 5-year average P/B ratio of 15.10, the current P/B ratio is about -22.78% higher. Adobe Inc (ADBE) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.93%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.56% , the current FCF yield is about -100.00% lower.
11.73
P/B
Median3y
14.20
Median5y
15.10
7.02
FCF Yield
Median3y
3.93
Median5y
3.56
Competitors Valuation Multiple
The average P/S ratio for ADBE's competitors is , providing a benchmark for relative valuation. Adobe Inc Corp (ADBE) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 10.72%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ADBE decreased by 26.07% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.41B to 5.99B.
The secondary factor is the Margin Expansion, contributed -4.98%to the performance.
Overall, the performance of ADBE in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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