AdobeADBE
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Fair Value
US$352.2
Share price09 Nov
US$218.0738.1% undervalued intrinsic discount
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1Y-42.15%
7D5.64%

I believe a fair price is $352

Author hasn't set their bio yet

Published
09 Nov 25
Views
249
Not Invested

Rationale- The last three years their revenue growth has been 10% every year. While their revenue is growing at that pace, their profit margin is growing alongside it, showing constant growth with increasing margins. Have made a big push into mobile and media, are seeing strong growth

I believe they can maintain strong revenue growth over the next 3 years. PE to maintain with what they are currently at and an expansion of profit margin based on their current trends. Several analysts were predicting a 42% profit margin which is not inline with the overall industry, I took the lower end of that at 27% which is their current net operating margin.

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Disclaimer

The user ChrisVanhooren holds no position in NasdaqGS:ADBE. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Fair Value vs Share Price

US$352.2
vs US$218.0738.1% undervalued intrinsic discount
PastFuture036b20142017202020232025202620292030Revenue US$35.7bEarnings US$9.6b
9%
Revenue growth
27%
Profit margin

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Company analysis

Undervalued with adequate balance sheet.

Market capUS$87.3b
PB7.5x
Estimated Growth8.2%
Dividend YieldN/A
Full analysis

CEO & management

Shantanu Narayen
CEO
4.9yrs
CEO Tenure

Operates as a technology company worldwide.