Adobe Inc.

BATS-CHIXE:ADBD Stock Report

Market Cap: €128.0b

Adobe Valuation

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

Discounted Cash Flow
Simply Wall St
€542.72
Fair Value
44.3% undervalued intrinsic discount
34
Number of Analysts

Below Fair Value: ADBD (€302.1) is trading below our estimate of fair value (€542.72)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ADBD. This is calculated by dividing ADBD's market cap by their current earnings.
What is ADBD's PE Ratio?
PE Ratio22.1x
EarningsUS$6.75b
Market CapUS$146.28b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ADBD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.3x
SGE Sage Group
34.9x12.3%UK£11.3b
BYIT Bytes Technology Group
22.6x7.9%UK£1.2b
GBG GB Group
79.7x38.9%UK£649.3m
ALFA Alfa Financial Software Holdings
23.8x3.7%UK£609.7m
ADBD Adobe
22.1x8.9%€146.3b

Price-To-Earnings vs Peers: ADBD is good value based on its Price-To-Earnings Ratio (22.1x) compared to the peer average (40.3x).

Price to Earnings Ratio vs Industry

How does ADBD's PE Ratio compare vs other companies in the GB Software Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PEB Pebble Beach Systems Group
4.7x15.4%US$9.96m
SORT Sorted Group Holdings
1.3xn/aUS$2.50m
No more companies available in this PE range
No. of Companies8PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ADBD is good value based on its Price-To-Earnings Ratio (22.1x) compared to the UK Software industry average (26.9x).

Price to Earnings Ratio vs Fair Ratio

What is ADBD'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.

ADBD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ADBD'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 ADBD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€302.10
€438.18
+45.0%
15.1%€561.66€333.49n/a34
Apr ’26€348.10
€482.03
+38.5%
13.2%€591.55€376.19n/a35
Mar ’26€419.40
€540.54
+28.9%
12.2%€630.89€401.48n/a36
Feb ’26n/a
€557.92
0%
11.1%€642.25€413.57n/a35
Jan ’26n/a
€565.43
0%
10.3%€675.43€410.08n/a35
Dec ’25€497.50
€584.17
+17.4%
10.7%€671.30€419.23n/a34
Nov ’25€450.20
€557.86
+23.9%
10.6%€642.20€401.06n/a35
Oct ’25€460.45
€552.61
+20.0%
10.5%€633.88€404.87n/a35
Sep ’25€517.40
€555.33
+7.3%
10.5%€643.02€413.37n/a35
Aug ’25€500.90
€555.33
+10.9%
10.5%€643.02€413.37n/a35
Jul ’25€516.50
€566.31
+9.6%
11.0%€653.80€420.30n/a33
Jun ’25€405.80
€567.70
+39.9%
11.6%€657.95€411.22n/a34
May ’25n/a
€571.32
0%
11.5%€658.88€411.80n/a34
Apr ’25€469.20
€571.32
+21.8%
11.5%€658.88€411.80€348.1034
Mar ’25€510.60
€595.73
+16.7%
9.5%€695.99€428.73€419.4033
Feb ’25€575.80
€595.22
+3.4%
9.5%€696.22€428.87n/a33
Jan ’25n/a
€577.20
0%
9.2%€665.62€421.10n/a33
Dec ’24€558.20
€553.08
-0.9%
10.9%€643.51€393.46€497.5033
Nov ’24n/a
€565.48
0%
10.4%€625.15€405.40€450.2033
Oct ’24€486.40
€551.37
+13.4%
12.5%€624.89€369.25€460.4534
Sep ’24n/a
€499.01
0%
11.9%€607.00€358.68€517.4033
Aug ’24€497.70
€491.08
-1.3%
11.6%€600.20€354.67€500.9033
Jul ’24€449.20
€476.68
+6.1%
11.9%€547.32€347.55€516.5032
Jun ’24€391.10
€378.09
-3.3%
8.4%€446.11€298.34€405.8031
May ’24€342.80
€367.59
+7.2%
10.4%€507.71€292.59n/a33
Apr ’24€351.85
€369.59
+5.0%
11.2%€516.06€297.41€469.2032
AnalystConsensusTarget
Consensus Narrative from 34 Analysts
€431.07
Fair Value
29.9% undervalued intrinsic discount
34
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/04/22 16:03
End of Day Share Price 2025/04/22 00:00
Earnings2025/02/28
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.

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 Github.

Analyst Sources

Adobe Inc. is covered by 76 analysts. 38 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