ADBE

Adobe Inc.

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NASDAQ

County of HQ

United States

Next Earnings Date

06/11/2026

Business Summary

Adobe's business model revolves around subscription-based software solutions, primarily targeting creative professionals and enterprises. Its competitive moat is fortified by industry-standard products like Photoshop and Acrobat, which are deeply integrated into users' workflows. This integration creates high switching costs, ensuring customer retention and recurring revenue. By continuously innovating and expanding its cloud offerings, Adobe maintains a stronghold in the digital media and marketing sectors.

 


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VALUATION

P/E

14.06

Market Cap ($M USD)

$99.92B

Forward P/E

7.41

PEG

0.08

PRICE TO SALES

4.09

PRICE TO BOOK

8.86

EV / EBITDA

10.15

5-Year Average P/E

Free Cash Flow Yield

10.33%

DCF Value

$361.87

Graham Number

$105.03

Price to FCF

9.68

EV to FCF

9.72

Earnings Yield

7.11%

FCF Yield

10.33%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$17.58

Next Year EPS Growth Estimate

$33.34

Next Year Revenue Growth Estimate

$3.65T

Return on Equity (ROE)

62.31%

FREE CASH FLOW

Operating Margin

36.65%

Debt-to-Equity

0.57

Piotroski F-Score

7

Altman Z-Score

7.38

Return on Invested Capital (ROIC)

48.93%

Current Ratio

0.91

Quick Ratio

0.91

Net Debt to EBITDA

0.03

Interest Coverage

64.93

Gross Profit margin

89.10%

FCF PER SHARE

$25.16

REVENUE PER SHARE

$59.64

Analyze ADBE on TradingView

Gainseekers Quantitative Analysis

Summary

Adobe Inc. presents a compelling valuation story. Despite trading below its DCF value, the stock’s Forward P/E of 7.41 and a remarkably low PEG ratio of 0.08 suggest significant undervaluation relative to its growth prospects. The Altman Z-score of 7.38 indicates robust financial health, minimizing bankruptcy risk. With an earnings yield of 7.11%, Adobe is positioned as a lucrative opportunity for investors seeking both safety and growth potential. The market appears to be mispricing this tech giant, offering a potential entry point for savvy investors.

AI Exposure / Tech Reliance

As a leader in the Software - Infrastructure industry, Adobe is well-positioned to capitalize on AI advancements. Its focus on creative and digital media solutions aligns seamlessly with AI-driven content creation and analytics. This strategic positioning ensures resilience and adaptability in the rapidly evolving tech landscape.

The Bull Case

For value and GARP investors, Adobe's allure lies in its exceptional capital efficiency and profitability. With a ROIC of 48.93% and a Piotroski F-Score of 7, the company demonstrates strong operational execution. Its FCF yield of 10.33% and operating margin of 36.65% highlight Adobe's pricing power and ability to generate substantial free cash flow. These metrics underscore a business model that efficiently converts revenue into profit, making it an attractive investment for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Adobe faces challenges with its high Price/Book ratio of 8.86 and Price/Sales ratio of 4.09, which may deter value investors. The stock's proximity to its 52-week high, with a distance of 71.10%, suggests potential overextension. Additionally, a current ratio of 0.91 raises concerns about short-term liquidity. These factors could pose risks if market sentiment shifts or economic conditions tighten.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$345.50

Institutional Ownership %

1-Year Beta

1.42

Insider Buying % (6 Mo)

Distance to 52-Week High

71.10%

Distance to 52-Week Low

9.33%

EARNINGS SURPRISE %

3.24%

50-DAY SMA

$250.36

200-DAY SMA

$311.36

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.