Adobe Inc.

BUL:ADB Stock Report

Market Cap: €187.5b

Adobe Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: ADB (€424.6) is trading below our estimate of fair value (€718.78)

Significantly Below Fair Value: ADB is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ADB. This is calculated by dividing ADB's market cap by their current earnings.
What is ADB's PE Ratio?
PE Ratio34.9x
EarningsUS$5.56b
Market CapUS$194.26b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ADB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average77.2x
INTU Intuit
61.1x17.3%US$182.0b
SAP SAP
100.3x41.4%€275.8b
CRM Salesforce
54.2x14.4%US$322.7b
APP AppLovin
93x32.6%US$105.1b
ADB Adobe
34.9x12.8%€194.3b

Price-To-Earnings vs Peers: ADB is good value based on its Price-To-Earnings Ratio (34.9x) compared to the peer average (77.1x).

Price to Earnings Ratio vs Industry

How does ADB's PE Ratio compare vs other companies in the European Software Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADB 34.9xIndustry Avg. 26.1xNo. of Companies18PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ADB is expensive based on its Price-To-Earnings Ratio (34.9x) compared to the European Software industry average (25.9x).

Price to Earnings Ratio vs Fair Ratio

What is ADB'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.

ADB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.9x
Fair PE Ration/a

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

The above table shows the analyst ADB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€424.60
€565.43
+33.2%
10.3%€675.43€410.08n/a35
Dec ’25n/a
€584.17
0%
10.7%€671.30€419.23n/a34
Nov ’25€450.80
€562.14
+24.7%
10.6%€647.13€404.14n/a35
Oct ’25€459.35
€552.61
+20.3%
10.5%€633.88€404.87n/a35
Sep ’25n/a
€555.33
0%
10.5%€643.02€413.37n/a35
Aug ’25n/a
€555.33
0%
10.5%€643.02€413.37n/a35
Jul ’25€496.40
€566.31
+14.1%
11.0%€653.80€420.30n/a33
Jun ’25€405.40
€567.70
+40.0%
11.6%€657.95€411.22n/a34
May ’25€441.58
€571.32
+29.4%
11.5%€658.88€411.80n/a34
Apr ’25€467.65
€571.32
+22.2%
11.5%€658.88€411.80n/a34
Mar ’25€520.10
€595.73
+14.5%
9.5%€695.99€428.73n/a33
Feb ’25€573.70
€595.22
+3.8%
9.5%€696.22€428.87n/a33
Jan ’25€539.30
€577.20
+7.0%
9.2%€665.62€421.10n/a33
Dec ’24€559.50
€553.08
-1.1%
10.9%€643.51€393.46n/a33
Nov ’24€513.30
€565.48
+10.2%
10.4%€625.15€405.40€450.8033
Oct ’24€486.50
€551.37
+13.3%
12.5%€624.89€369.25€459.3534
Sep ’24€520.70
€499.01
-4.2%
11.9%€607.00€358.68n/a33
Aug ’24€495.00
€491.08
-0.8%
11.6%€600.20€354.67n/a33
Jul ’24€447.65
€476.68
+6.5%
11.9%€547.32€347.55€496.4032
Jun ’24€390.15
€378.09
-3.1%
8.4%€446.11€298.34€405.4031
May ’24€337.70
€367.59
+8.8%
10.4%€507.71€292.59€441.5833
Apr ’24€350.55
€369.59
+5.4%
11.2%€516.06€297.41€467.6532
Mar ’24€303.50
€369.18
+21.6%
11.9%€525.74€302.61€520.1032
Feb ’24€338.05
€356.87
+5.6%
12.0%€511.08€294.16€573.7032
Jan ’24€313.68
€363.81
+16.0%
9.9%€446.45€301.71€539.3030
Dec ’23€331.83
€359.56
+8.4%
11.7%€460.13€300.30€559.5028

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 21:00
End of Day Share Price 2024/12/19 00:00
Earnings2024/11/29
Annual Earnings2024/11/29

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Adobe Inc. is covered by 75 analysts. 37 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Joseph BonnerArgus Research Company
Robert OliverBaird
Ishan MajumdarBaptista Research