ADBE Valuation

Adobe Inc

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348.770

+0.46(0.132%)1D

Overview
Forecast
Valuation
Earnings

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 15.27 is considered Undervalued compared with the five-year average of 30.12. The fair price of Adobe Inc (ADBE) is between 639.18 to 975.84 according to relative valuation methord. Compared to the current price of 348.31 USD , Adobe Inc is Undervalued By 45.51%.

Relative Value

Fair Zone

639.18-975.84

Current Price：348.31

45.51%

Undervalued

15.27

Trailing

Forward

11.75

EV/EBITDA

Adobe Inc. (ADBE) has a current EV/EBITDA of 11.75. The 5-year average EV/EBITDA is 22.43. The thresholds are as follows: Strongly Undervalued below 8.87, Undervalued between 8.87 and 15.65, Fairly Valued between 29.21 and 15.65, Overvalued between 29.21 and 35.99, and Strongly Overvalued above 35.99. The current Forward EV/EBITDA of 11.75 falls within the Undervalued range.

12.63

EV/EBIT

Adobe Inc. (ADBE) has a current EV/EBIT of 12.63. The 5-year average EV/EBIT is 24.64. The thresholds are as follows: Strongly Undervalued below 9.40, Undervalued between 9.40 and 17.02, Fairly Valued between 32.27 and 17.02, Overvalued between 32.27 and 39.89, and Strongly Overvalued above 39.89. The current Forward EV/EBIT of 12.63 falls within the Undervalued range.

5.79

Adobe Inc. (ADBE) has a current PS of 5.79. The 5-year average PS is 11.22. The thresholds are as follows: Strongly Undervalued below 4.47, Undervalued between 4.47 and 7.84, Fairly Valued between 14.59 and 7.84, Overvalued between 14.59 and 17.96, and Strongly Overvalued above 17.96. The current Forward PS of 5.79 falls within the Undervalued range.

14.41

P/OCF

Adobe Inc. (ADBE) has a current P/OCF of 14.41. The 5-year average P/OCF is 26.52. The thresholds are as follows: Strongly Undervalued below 10.75, Undervalued between 10.75 and 18.63, Fairly Valued between 34.40 and 18.63, Overvalued between 34.40 and 42.29, and Strongly Overvalued above 42.29. The current Forward P/OCF of 14.41 falls within the Undervalued range.

14.92

P/FCF

Adobe Inc. (ADBE) has a current P/FCF of 14.92. The 5-year average P/FCF is 27.98. The thresholds are as follows: Strongly Undervalued below 11.25, Undervalued between 11.25 and 19.61, Fairly Valued between 36.34 and 19.61, Overvalued between 36.34 and 44.71, and Strongly Overvalued above 44.71. The current Forward P/FCF of 14.92 falls within the Undervalued range.

Adobe Inc (ADBE) has a current Price-to-Book (P/B) ratio of 12.43. Compared to its 3-year average P/B ratio of 14.13 , the current P/B ratio is approximately -12.06% higher. Relative to its 5-year average P/B ratio of 15.35, the current P/B ratio is about -19.04% 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 3.82%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.41% , the current FCF yield is about -100.00% lower.

12.43

P/B

Median3y

14.13

Median5y

15.35

6.55

FCF Yield

Median3y

3.82

Median5y

3.41

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

Palo Alto Networks Inc

CrowdStrike Holdings Inc

Automatic Data Processing Inc

Performance Decomposition

Market capitalization of ADBE decreased by 27.14% 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.

10.72%

5.41B → 5.99B

Revenue Growth

-4.98%

31.14 → 29.59

Margin Expansion

-32.88%

32.38 → 21.74

P/E Change

-27.14%