NASDAQ
ADBE
Last Price
US $205.02
KEY FIGURES
MKT CAP
$80.6B
EPS
TTM
$17.98
PEG
TTM
1.00x
P/E
TTM
11.58x
P/S
TTM
3.39x
YIELD
0.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
62.39%
Return on equity
ROIC: 36.45%
Valuation History
11.6X
Price to Earnings
EV/EBITDA: 8.3X
Cash flow
Profit margin
13.06%
(FY vs FY)
EBITDA Y/Y
14.06%
(FY vs FY)
Cash flow Y/Y
13.17%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $205.02
107.79%
Default assumptions
EBITDA Multiple
Fair Value
Market $205.02
-19.80%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Adobe Inc. cash flow to debt ratio of 150.89% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Adobe Inc.'s free cash flow has increased 25.92% from $7.82G last year to $9.85G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Adobe Inc.'s debt to equity ratio is 0.61, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Adobe Inc.'s debt has increased relative to shareholder equity from 0.43 last year to 0.61 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Adobe Inc. has a net debt to EBITDA ratio of 0.12x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Adobe Inc.'s interest coverage ratio of 67.33 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Adobe Inc.'s profit margin has increased (10.96%) in the last year from 25.85% to 28.69%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Adobe Inc.'s short-term liabilities of $10.20G exceed its short-term assets of $10.16G, signaling financial risk
Increasing performance - ROA.
Adobe Inc.'s return on assets of 24.15% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Adobe Inc.'s return on equity of 62.39%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Adobe Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Adobe Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Adobe Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Adobe Inc. has a free cash flow yield of 12.23%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Adobe Inc.'s yearly earnings has increased 28.24% since last year from $5.56G to $7.13G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Adobe Inc.'s yearly revenue has increased 10.53% since last year from $21.50G to $23.77G, signaling increasing performance
Increasing performance - ROIC.
ROIC 36.45% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Adobe Inc.'s 3-year revenue CAGR of 10.52% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Adobe Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Adobe Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
Adobe Inc. is undervalued relative to its fair value price of 426.01 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Adobe Inc. has an earnings yield of 8.87%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Adobe Inc. is overvalued relative to its fair value price of 164.43 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Adobe Inc. has an EV/EBITDA ratio of 8.32x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Adobe Inc. has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
Adobe Inc. has a price-to-book ratio of 7.08x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Adobe Inc. has a price-to-sales ratio of 3.20x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue