Adobe Inc.

XTRA:ADB Stock Report

Market Cap: €183.7b

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.

Discounted Cash Flow
Simply Wall St
€444.91
Fair Value
4.8% undervalued intrinsic discount
35
Number of Analysts

Below Fair Value: ADB (€423.55) is trading below our estimate of fair value (€444.91)

Significantly Below Fair Value: ADB 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 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 Ratio34.2x
EarningsUS$5.56b
Market CapUS$190.42b

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 Average58.8x
SAP SAP
100x33.9%€312.4b
NEM Nemetschek
78.3x17.7%€13.4b
TMV TeamViewer
15.1x10.4%€1.8b
AOF ATOSS Software
41.9x6.9%€1.8b
ADB Adobe
34.2x12.8%€190.4b

Price-To-Earnings vs Peers: ADB is good value based on its Price-To-Earnings Ratio (34.2x) compared to the peer average (58.8x).

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 34.2xIndustry Avg. 26.7xNo. of Companies20PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ADB is expensive based on its Price-To-Earnings Ratio (34.2x) compared to the European Software industry average (27.1x).

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 Ratio34.2x
Fair PE Ratio47x

Price-To-Earnings vs Fair Ratio: ADB is good value based on its Price-To-Earnings Ratio (34.2x) compared to the estimated Fair Price-To-Earnings Ratio (47x).

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€423.55
€550.98
+30.1%
11.1%€634.26€408.43n/a35
Jan ’26€424.20
€565.43
+33.3%
10.3%€675.43€410.08n/a35
Dec ’25€489.35
€584.17
+19.4%
10.7%€671.30€419.23n/a34
Nov ’25€446.50
€562.14
+25.9%
10.6%€647.13€404.14n/a35
Oct ’25€456.60
€552.61
+21.0%
10.5%€633.88€404.87n/a35
Sep ’25€515.70
€555.33
+7.7%
10.5%€643.02€413.37n/a35
Aug ’25€507.80
€555.33
+9.4%
10.5%€643.02€413.37n/a35
Jul ’25€517.00
€566.31
+9.5%
11.0%€653.80€420.30n/a33
Jun ’25€402.50
€567.70
+41.0%
11.6%€657.95€411.22n/a34
May ’25€438.00
€571.32
+30.4%
11.5%€658.88€411.80n/a34
Apr ’25€464.80
€571.32
+22.9%
11.5%€658.88€411.80n/a34
Mar ’25€522.20
€595.73
+14.1%
9.5%€695.99€428.73n/a33
Feb ’25€573.00
€595.22
+3.9%
9.5%€696.22€428.87€423.5533
Jan ’25€538.60
€577.20
+7.2%
9.2%€665.62€421.10€424.2033
Dec ’24€557.20
€553.08
-0.7%
10.9%€643.51€393.46€489.3533
Nov ’24€511.60
€565.48
+10.5%
10.4%€625.15€405.40€446.5033
Oct ’24€484.20
€551.37
+13.9%
12.5%€624.89€369.25€456.6034
Sep ’24€521.00
€499.01
-4.2%
11.9%€607.00€358.68€515.7033
Aug ’24€499.00
€491.08
-1.6%
11.6%€600.20€354.67€507.8033
Jul ’24€448.00
€476.68
+6.4%
11.9%€547.32€347.55€517.0032
Jun ’24€392.30
€378.09
-3.6%
8.4%€446.11€298.34€402.5031
May ’24€338.40
€367.59
+8.6%
10.4%€507.71€292.59€438.0033
Apr ’24€351.80
€369.59
+5.1%
11.2%€516.06€297.41€464.8032
Mar ’24€302.20
€369.18
+22.2%
11.9%€525.74€302.61€522.2032
Feb ’24€337.65
€356.87
+5.7%
12.0%€511.08€294.16€573.0032
Analyst Price Target
Consensus Narrative from 35 Analysts
€555.12
Fair Value
23.7% undervalued intrinsic discount
35
Number of Analysts

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 Analysis2025/02/01 11:51
End of Day Share Price 2025/01/31 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 74 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