ADBE PE Ratio & Valuation,Is ADBE Overvalued

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 15.21 is considered Undervalued compared with the five-year average of 29.07. The fair price of Adobe Inc (ADBE) is between 604.44 to 947.18 according to relative valuation methord. Compared to the current price of 350.29 USD , Adobe Inc is Undervalued By 42.05%.

Relative Value

Fair Zone

604.44-947.18

Current Price：350.29

42.05%

Undervalued

15.21

11.94

EV/EBITDA

Adobe Inc. (ADBE) has a current EV/EBITDA of 11.94. The 5-year average EV/EBITDA is 21.66. The thresholds are as follows: Strongly Undervalued below 8.00, Undervalued between 8.00 and 14.83, Fairly Valued between 28.49 and 14.83, Overvalued between 28.49 and 35.32, and Strongly Overvalued above 35.32. The current Forward EV/EBITDA of 11.94 falls within the Undervalued range.

12.72

EV/EBIT

Adobe Inc. (ADBE) has a current EV/EBIT of 12.72. The 5-year average EV/EBIT is 23.74. The thresholds are as follows: Strongly Undervalued below 8.48, Undervalued between 8.48 and 16.11, Fairly Valued between 31.37 and 16.11, Overvalued between 31.37 and 39.01, and Strongly Overvalued above 39.01. The current Forward EV/EBIT of 12.72 falls within the Undervalued range.

5.73

Adobe Inc. (ADBE) has a current PS of 5.73. The 5-year average PS is 10.83. The thresholds are as follows: Strongly Undervalued below 3.99, Undervalued between 3.99 and 7.41, Fairly Valued between 14.24 and 7.41, Overvalued between 14.24 and 17.66, and Strongly Overvalued above 17.66. The current Forward PS of 5.73 falls within the Undervalued range.

14.58

P/OCF

Adobe Inc. (ADBE) has a current P/OCF of 14.58. The 5-year average P/OCF is 25.64. The thresholds are as follows: Strongly Undervalued below 9.75, Undervalued between 9.75 and 17.70, Fairly Valued between 33.58 and 17.70, Overvalued between 33.58 and 41.53, and Strongly Overvalued above 41.53. The current Forward P/OCF of 14.58 falls within the Undervalued range.

14.56

P/FCF

Adobe Inc. (ADBE) has a current P/FCF of 14.56. The 5-year average P/FCF is 27.03. The thresholds are as follows: Strongly Undervalued below 10.14, Undervalued between 10.14 and 18.59, Fairly Valued between 35.48 and 18.59, Overvalued between 35.48 and 43.93, and Strongly Overvalued above 43.93. The current Forward P/FCF of 14.56 falls within the Undervalued range.

Adobe Inc (ADBE) has a current Price-to-Book (P/B) ratio of 12.79. Compared to its 3-year average P/B ratio of 14.22 , the current P/B ratio is approximately -10.06% higher. Relative to its 5-year average P/B ratio of 15.07, the current P/B ratio is about -15.16% 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 3.84%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.52% , the current FCF yield is about -100.00% lower.

12.79

P/B

Median3y

14.22

Median5y

15.07

0.00

FCF Yield

Median3y

3.84

Median5y

3.52

Competitors Valuation Multiple

The average P/S ratio for ADBE's competitors is 11.05, providing a benchmark for relative valuation. Adobe Inc Corp (ADBE) exhibits a P/S ratio of 5.73, which is -48.13% above the industry average. Given its robust revenue growth of 10.49%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ADBE decreased by 19.85% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.61B to 6.19B.

The secondary factor is the Margin Expansion, contributed -0.20%to the performance.

Overall, the performance of ADBE in the past 1 year is driven by Revenue Growth. Which is more sustainable.

10.49%

5.61B → 6.19B

Revenue Growth

-0.20%

30.02 → 29.96

Margin Expansion

-30.14%

30.56 → 21.35

P/E Change

-19.85%

444.68 → 356.43

Mkt Cap Growth

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Frequently Asked Questions

Is Adobe Inc (ADBE) currently overvalued or undervalued?

What is Adobe Inc (ADBE) fair value?

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. The fair price of Adobe Inc (ADBE) is between 604.44 to 947.18 according to relative valuation methord.

How does ADBE's valuation metrics compare to the industry average?

What is the current P/B ratio for Adobe Inc (ADBE) as of Dec 15 2025?

As of Dec 15 2025, Adobe Inc (ADBE) has a P/B ratio of 12.79. This indicates that the market values ADBE at 12.79 times its book value.

What is the current FCF Yield for Adobe Inc (ADBE) as of Dec 15 2025?

As of Dec 15 2025, Adobe Inc (ADBE) has a FCF Yield of 0.00%. This means that for every dollar of Adobe Inc’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Adobe Inc (ADBE) as of Dec 15 2025?

As of Dec 15 2025, Adobe Inc (ADBE) has a Forward P/E ratio of 15.21. This means the market is willing to pay $15.21 for every dollar of Adobe Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Adobe Inc (ADBE) as of Dec 15 2025?

As of Dec 15 2025, Adobe Inc (ADBE) has a Forward P/S ratio of 5.73. This means the market is valuing ADBE at $5.73 for every dollar of expected revenue over the next 12 months.

ADBE Valuation