Adobe Valuation

Is ADBED 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 ADBED when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADBED ($11.65) is trading below our estimate of fair value ($13.66)

Significantly Below Fair Value: ADBED 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 ADBED?

Other financial metrics that can be useful for relative valuation.

ADBED key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue10.1x
Enterprise Value/EBITDA26x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ADBED vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average68.8x
INTU Intuit
58.8x16.5%US$174.3b
CRM Salesforce
50x13.9%US$281.8b
SAP SAP
91.9x40.8%€252.2b
CDNS Cadence Design Systems
74.5x16.7%US$77.4b
ADBED Adobe
39.7x16.5%US$212.5b

Price-To-Earnings vs Peers: ADBED is good value based on its Price-To-Earnings Ratio (39.7x) compared to the peer average (68.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0%
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Price-To-Earnings vs Industry: ADBED is expensive based on its Price-To-Earnings Ratio (39.7x) compared to the Global Software industry average (30.9x).


Price to Earnings Ratio vs Fair Ratio

What is ADBED'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.

ADBED PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ADBED'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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