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 14.61 is considered Undervalued compared with the five-year average of 29.55. The fair price of Adobe Inc (ADBE) is between 638.57 to 976.99 according to relative valuation methord. Compared to the current price of 335.82 USD , Adobe Inc is Undervalued By 47.41%.
Relative Value
Fair Zone
638.57-976.99
Current Price：335.82
47.41%
Undervalued
14.79
PE
1Y
3Y
5Y
Trailing
Forward
10.98
EV/EBITDA
Adobe Inc. (ADBE) has a current EV/EBITDA of 10.98. The 5-year average EV/EBITDA is 22.18. The thresholds are as follows: Strongly Undervalued below 8.80, Undervalued between 8.80 and 15.49, Fairly Valued between 28.87 and 15.49, Overvalued between 28.87 and 35.56, and Strongly Overvalued above 35.56. The current Forward EV/EBITDA of 10.98 falls within the Undervalued range.
11.79
EV/EBIT
Adobe Inc. (ADBE) has a current EV/EBIT of 11.79. The 5-year average EV/EBIT is 24.34. The thresholds are as follows: Strongly Undervalued below 9.37, Undervalued between 9.37 and 16.85, Fairly Valued between 31.82 and 16.85, Overvalued between 31.82 and 39.30, and Strongly Overvalued above 39.30. The current Forward EV/EBIT of 11.79 falls within the Undervalued range.
337.05
PS
Adobe Inc. (ADBE) has a current PS of 337.05. The 5-year average PS is 14.55. The thresholds are as follows: Strongly Undervalued below -52.55, Undervalued between -52.55 and -19.00, Fairly Valued between 48.10 and -19.00, Overvalued between 48.10 and 81.65, and Strongly Overvalued above 81.65. The current Forward PS of 337.05 falls within the Strongly Overvalued range.
13.45
P/OCF
Adobe Inc. (ADBE) has a current P/OCF of 13.45. The 5-year average P/OCF is 26.23. The thresholds are as follows: Strongly Undervalued below 10.67, Undervalued between 10.67 and 18.45, Fairly Valued between 34.00 and 18.45, Overvalued between 34.00 and 41.78, and Strongly Overvalued above 41.78. The current Forward P/OCF of 13.45 falls within the Undervalued range.
13.93
P/FCF
Adobe Inc. (ADBE) has a current P/FCF of 13.93. The 5-year average P/FCF is 27.67. The thresholds are as follows: Strongly Undervalued below 11.16, Undervalued between 11.16 and 19.41, Fairly Valued between 35.92 and 19.41, Overvalued between 35.92 and 44.17, and Strongly Overvalued above 44.17. The current Forward P/FCF of 13.93 falls within the Undervalued range.
Adobe Inc (ADBE) has a current Price-to-Book (P/B) ratio of 11.89. Compared to its 3-year average P/B ratio of 14.21 , the current P/B ratio is approximately -16.30% higher. Relative to its 5-year average P/B ratio of 15.20, the current P/B ratio is about -21.75% higher. Adobe Inc (ADBE) has a Forward Free Cash Flow (FCF) yield of approximately 0.07%. Compared to its 3-year average FCF yield of 3.88%, the current FCF yield is approximately -98.22% lower. Relative to its 5-year average FCF yield of 3.50% , the current FCF yield is about -98.03% lower.
12.03
P/B
Median3y
14.21
Median5y
15.20
0.07
FCF Yield
Median3y
3.88
Median5y
3.50
Competitors Valuation Multiple
The average P/S ratio for ADBE's competitors is 479.28, providing a benchmark for relative valuation. Adobe Inc Corp (ADBE) exhibits a P/S ratio of 337.05, which is -29.68% 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 34.67% 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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