Adobe Inc.

BASE:ADBE Stock Report

Market Cap: AR$219.6t

Adobe Valuation

Is ADBE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ADBE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADBE (ARS12975) is trading below our estimate of fair value (ARS14307.07)

Significantly Below Fair Value: ADBE is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADBE?

Key metric: As ADBE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ADBE. This is calculated by dividing ADBE's market cap by their current earnings.
What is ADBE's PE Ratio?
PE Ratio41x
EarningsUS$5.36b
Market CapUS$219.88b

Price to Earnings Ratio vs Peers

How does ADBE's PE Ratio compare to its peers?

The above table shows the PE ratio for ADBE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average74.6x
SAP SAP
92.6x40.8%€254.3b
INTU Intuit
64.2x16.4%US$192.8b
CRM Salesforce
54.7x13.7%US$310.9b
APP AppLovin
87x28.3%US$97.7b
ADBE Adobe
41x16.5%AR$219.9b

Price-To-Earnings vs Peers: ADBE is good value based on its Price-To-Earnings Ratio (41x) compared to the peer average (74.6x).

Price to Earnings Ratio vs Industry

How does ADBE's PE Ratio compare vs other companies in the Global Software Industry?

32 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADBE 41.0xIndustry Avg. 32.0xNo. of Companies74PE020406080100+
32 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ADBE is expensive based on its Price-To-Earnings Ratio (41x) compared to the Global Software industry average (32x).

Price to Earnings Ratio vs Fair Ratio

What is ADBE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ADBE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio41x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ADBE's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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