Adobe Inc.

XTRA:ADB Stock Report

Market Cap: €208.2b

Adobe Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 (€472.35) is trading below our estimate of fair value (€727.01)

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 Ratio41x
EarningsUS$5.36b
Market CapUS$219.88b

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 Average54.1x
SAP SAP
92.6x40.8%€254.3b
NEM Nemetschek
66.9x18.6%€11.4b
TMV TeamViewer
15x11.0%€1.8b
AOF ATOSS Software
41.8x7.8%€1.8b
ADB Adobe
41x16.5%€221.6b

Price-To-Earnings vs Peers: ADB is good value based on its Price-To-Earnings Ratio (41x) compared to the peer average (54.1x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADB 41.0xIndustry Avg. 28.3xNo. of Companies17PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ADB is expensive based on its Price-To-Earnings Ratio (41x) compared to the European Software industry average (27.7x).

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 Ratio41x
Fair PE Ratio46x

Price-To-Earnings vs Fair Ratio: ADB is good value based on its Price-To-Earnings Ratio (41x) compared to the estimated Fair Price-To-Earnings Ratio (46.1x).

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€474.65
€576.40
+21.4%
10.6%€663.55€414.39n/a35
Nov ’25€446.50
€557.86
+24.9%
10.6%€642.20€401.06n/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€428.87n/a33
Jan ’25€538.60
€577.20
+7.2%
9.2%€665.62€421.10n/a33
Dec ’24€557.20
€553.08
-0.7%
10.9%€643.51€393.46n/a33
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
Jan ’24€312.60
€363.81
+16.4%
9.9%€446.45€301.71€538.6030
Dec ’23€327.60
€359.56
+9.8%
11.7%€460.13€300.30€557.2028
Nov ’23€318.45
€377.74
+18.6%
11.7%€486.21€317.32€511.6028

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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