Adobe
Adobe Inc. operates as a diversified software company worldwide. The last earnings update was 9 days ago. More info.
Add to Portfolio Compare Print
ADBE Share Price and Events
7 Day Returns
1 Year Returns
ADBE Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Adobe (ADBE) | 1% | 0.7% | 24.4% | 20.8% | 180.7% | 300.3% |
| US Software | 0.2% | 5% | 24.9% | 31.2% | 108.9% | 137.5% |
| US Market | -1.1% | 0.3% | 16.7% | 6.4% | 37.9% | 42.1% |
1 Year Return vs Industry and Market
- ADBE underperformed the Software industry which returned 31.2% over the past year.
- ADBE outperformed the Market in United States of America which returned 6.4% over the past year.
ADBE Value
Is Adobe undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Adobe
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Adobe.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 30 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.4% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.14 (1 + (1- 21%) (3.25%)) |
1.113 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.11 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.113 * 5.96%) |
9.36% |
Discounted Cash Flow Calculation for NasdaqGS:ADBE using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Adobe is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.36%) |
|
|---|---|---|---|
| 2019 | 4,396.01 | Analyst x20 | 4,019.59 |
| 2020 | 5,292.07 | Analyst x21 | 4,424.59 |
| 2021 | 6,143.97 | Analyst x7 | 4,696.99 |
| 2022 | 6,917.75 | Analyst x2 | 4,835.71 |
| 2023 | 8,331.40 | Analyst x1 | 5,325.21 |
| 2024 | 9,264.94 | Est @ 11.21% | 5,414.83 |
| 2025 | 10,067.52 | Est @ 8.66% | 5,380.08 |
| 2026 | 10,760.44 | Est @ 6.88% | 5,257.99 |
| 2027 | 11,367.00 | Est @ 5.64% | 5,078.78 |
| 2028 | 11,908.62 | Est @ 4.76% | 4,865.18 |
| Present value of next 10 years cash flows | $49,298.95 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $11,908.62 × (1 + 2.73%) ÷ (9.36% – 2.73%) |
$184,396.38 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $184,396.38 ÷ (1 + 9.36%)10 |
$75,333.79 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $49,298.95 + $75,333.79 |
$124,632.74 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $124,632.74 / 489.11 |
$254.81 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $254.81 |
| Current discount | Discount to share price of
$259.69
= -1 x ($259.69 - $254.81) / $254.81 |
-1.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Adobe is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Adobe's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Adobe's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-01) in USD | $5.48 |
| NasdaqGS:ADBE Share Price ** | NasdaqGS (2019-03-22) in USD | $259.69 |
| United States of America Software Industry PE Ratio | Median Figure of 84 Publicly-Listed Software Companies | 53.16x |
| United States of America Market PE Ratio | Median Figure of 3,061 Publicly-Listed Companies | 17.15x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Adobe.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:ADBE Share Price ÷ EPS (both in USD) = 259.69 ÷ 5.48 |
47.4x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Adobe is good value based on earnings compared to the US Software industry average.
- Adobe is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Adobe's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 47.4x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts |
19.1%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 66 Publicly-Listed Software Companies | 3.32x |
| United States of America Market PEG Ratio | Median Figure of 2,104 Publicly-Listed Companies | 1.45x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 47.4x ÷ 19.1% |
2.48x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Adobe is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Adobe's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-01) in USD | $20.23 |
| NasdaqGS:ADBE Share Price * | NasdaqGS (2019-03-22) in USD | $259.69 |
| United States of America Software Industry PB Ratio | Median Figure of 220 Publicly-Listed Software Companies | 5.62x |
| United States of America Market PB Ratio | Median Figure of 5,164 Publicly-Listed Companies | 1.84x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:ADBE Share Price ÷ Book Value per Share (both in USD) = 259.69 ÷ 20.23 |
12.84x |
* Primary Listing of Adobe.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Adobe is overvalued based on assets compared to the US Software industry average.
Value checks
We assess Adobe's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Adobe has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
ADBE Future Performance
How is Adobe expected to perform in the next 1 to 3 years based on estimates from 30 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Adobe's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Adobe's earnings growth is expected to exceed the United States of America market average.
- Adobe's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:ADBE Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts | 19.1% |
| NasdaqGS:ADBE Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts | 13.9% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 16% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 10.9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.2% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 weeks ago) | See Below |
| Future Estimates | Average of up to 30 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-11-30 | 19,245 | 8,742 | 6,123 | 2 |
| 2022-11-30 | 17,078 | 7,362 | 5,203 | 2 |
| 2021-11-30 | 15,031 | 6,494 | 4,547 | 14 |
| 2020-11-30 | 13,153 | 5,626 | 3,635 | 29 |
| 2019-11-30 | 11,168 | 4,722 | 2,860 | 30 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-01 | 9,552 | 4,053 | 2,682 |
| 2018-11-30 | 9,030 | 4,029 | 2,591 |
| 2018-08-31 | 8,572 | 3,755 | 2,414 |
| 2018-06-01 | 8,122 | 3,504 | 2,167 |
| 2018-03-02 | 7,699 | 3,172 | 1,879 |
| 2017-12-01 | 7,302 | 2,913 | 1,694 |
| 2017-09-01 | 6,903 | 2,775 | 1,592 |
| 2017-06-02 | 6,526 | 2,589 | 1,443 |
| 2017-03-03 | 6,153 | 2,433 | 1,313 |
| 2016-12-02 | 5,854 | 2,200 | 1,169 |
| 2016-09-02 | 5,552 | 1,959 | 992 |
| 2016-06-03 | 5,306 | 1,801 | 896 |
| 2016-03-04 | 5,070 | 1,784 | 799 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 weeks ago) | See Below |
| Future Estimates | Average of up to 30 Analyst Estimates (S&P Global) | See Below |
All data from Adobe Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-11-30 | 13.95 | 13.95 | 13.95 | 1.00 |
| 2022-11-30 | 11.18 | 11.51 | 10.84 | 2.00 |
| 2021-11-30 | 9.26 | 9.90 | 8.24 | 7.00 |
| 2020-11-30 | 7.46 | 8.33 | 6.86 | 14.00 |
| 2019-11-30 | 5.79 | 6.61 | 5.50 | 14.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-01 | 5.48 |
| 2018-11-30 | 5.28 |
| 2018-08-31 | 4.91 |
| 2018-06-01 | 4.40 |
| 2018-03-02 | 3.81 |
| 2017-12-01 | 3.43 |
| 2017-09-01 | 3.22 |
| 2017-06-02 | 2.91 |
| 2017-03-03 | 2.64 |
| 2016-12-02 | 2.35 |
| 2016-09-02 | 1.99 |
| 2016-06-03 | 1.79 |
| 2016-03-04 | 1.60 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Adobe's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Adobe has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
ADBE Past Performance
How has Adobe performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Adobe has delivered over 20% year on year earnings growth in the past 5 years.
- Adobe's 1-year earnings growth is less than its 5-year average (42.9% vs 44.3%)
- Adobe's earnings growth has exceeded the US Software industry average in the past year (42.9% vs 26.2%).
Earnings and Revenue History
All data from Adobe Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-01 | 9,552.01 | 2,681.94 | 3,611.96 | 1,653.68 |
| 2018-11-30 | 9,030.01 | 2,590.77 | 3,365.73 | 1,537.81 |
| 2018-08-31 | 8,571.98 | 2,414.08 | 3,173.47 | 1,445.88 |
| 2018-06-01 | 8,121.98 | 2,167.36 | 3,016.82 | 1,362.48 |
| 2018-03-02 | 7,698.81 | 1,878.58 | 2,902.59 | 1,287.75 |
| 2017-12-01 | 7,301.51 | 1,693.95 | 2,822.30 | 1,224.06 |
| 2017-09-01 | 6,903.33 | 1,592.02 | 2,721.86 | 1,157.88 |
| 2017-06-02 | 6,526.22 | 1,443.24 | 2,645.21 | 1,090.78 |
| 2017-03-03 | 6,152.74 | 1,312.92 | 2,536.10 | 1,023.86 |
| 2016-12-02 | 5,854.43 | 1,168.78 | 2,486.40 | 975.99 |
| 2016-09-02 | 5,552.42 | 991.87 | 2,418.69 | 938.65 |
| 2016-06-03 | 5,306.22 | 895.55 | 2,342.46 | 908.86 |
| 2016-03-04 | 5,069.67 | 798.97 | 2,298.75 | 884.43 |
| 2015-11-27 | 4,795.51 | 629.55 | 2,216.72 | 862.73 |
| 2015-08-28 | 4,562.44 | 494.98 | 2,182.03 | 855.90 |
| 2015-05-29 | 4,350.08 | 365.20 | 2,185.58 | 849.29 |
| 2015-02-27 | 4,256.13 | 306.24 | 2,184.34 | 850.34 |
| 2014-11-28 | 4,147.07 | 268.40 | 2,195.64 | 844.35 |
| 2014-08-29 | 4,115.44 | 245.58 | 2,223.14 | 835.86 |
| 2014-05-30 | 4,105.15 | 283.90 | 2,191.71 | 832.51 |
| 2014-02-28 | 4,047.49 | 271.91 | 2,158.82 | 826.52 |
| 2013-11-29 | 4,055.24 | 289.99 | 2,140.58 | 826.63 |
| 2013-08-30 | 4,166.97 | 447.00 | 2,084.31 | 816.48 |
| 2013-05-31 | 4,252.43 | 565.35 | 2,046.40 | 796.93 |
| 2013-03-01 | 4,366.33 | 712.68 | 2,020.38 | 774.73 |
| 2012-11-30 | 4,403.68 | 832.78 | 1,951.14 | 742.82 |
| 2012-08-31 | 4,402.41 | 784.16 | 1,925.43 | 743.18 |
| 2012-06-01 | 4,335.04 | 777.91 | 1,885.84 | 735.07 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Adobe has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Adobe used its assets more efficiently than the US Software industry average last year based on Return on Assets.
- Adobe has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Adobe's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Adobe has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
ADBE Health
How is Adobe's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Adobe's finances.
The net worth of a company is the difference between its assets and liabilities.
- Adobe's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Adobe's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Adobe Company Filings, last reported 3 weeks ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-01 | 9,871.49 | 4,129.59 | 3,226.26 |
| 2018-11-30 | 9,362.11 | 4,134.54 | 3,228.96 |
| 2018-08-31 | 8,861.93 | 1,884.97 | 4,944.47 |
| 2018-06-01 | 8,705.58 | 1,884.13 | 6,334.06 |
| 2018-03-02 | 8,634.03 | 1,883.31 | 6,147.97 |
| 2017-12-01 | 8,459.87 | 1,882.48 | 5,819.77 |
| 2017-09-01 | 8,170.43 | 1,889.22 | 5,368.49 |
| 2017-06-02 | 7,804.00 | 1,888.40 | 4,931.51 |
| 2017-03-03 | 7,588.69 | 1,884.07 | 4,647.62 |
| 2016-12-02 | 7,424.84 | 1,892.20 | 4,761.30 |
| 2016-09-02 | 7,277.95 | 1,916.59 | 4,446.40 |
| 2016-06-03 | 7,248.61 | 1,918.39 | 4,318.41 |
| 2016-03-04 | 7,081.20 | 1,916.83 | 4,097.89 |
| 2015-11-27 | 7,001.58 | 1,907.23 | 3,988.08 |
| 2015-08-28 | 6,841.33 | 1,906.09 | 3,668.73 |
| 2015-05-29 | 6,610.10 | 1,904.38 | 3,413.25 |
| 2015-02-27 | 6,589.02 | 1,901.62 | 3,176.82 |
| 2014-11-28 | 6,775.91 | 1,514.32 | 3,739.49 |
| 2014-08-29 | 6,731.26 | 1,508.26 | 3,520.20 |
| 2014-05-30 | 6,636.89 | 1,506.29 | 3,330.21 |
| 2014-02-28 | 6,610.88 | 1,509.73 | 3,132.09 |
| 2013-11-29 | 6,724.63 | 1,513.97 | 3,173.75 |
| 2013-08-30 | 6,834.76 | 1,519.83 | 3,163.94 |
| 2013-05-31 | 6,927.30 | 1,525.64 | 3,865.71 |
| 2013-03-01 | 6,805.34 | 1,531.41 | 3,660.69 |
| 2012-11-30 | 6,665.18 | 1,508.16 | 3,538.35 |
| 2012-08-31 | 6,438.69 | 1,510.97 | 3,247.36 |
| 2012-06-01 | 6,099.65 | 1,510.09 | 2,998.12 |
- Adobe's level of debt (41.8%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (22.8% vs 41.8% today).
- Debt is well covered by operating cash flow (98.1%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 95x coverage).
Financial health checks
We assess Adobe's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Adobe has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
ADBE Dividends
What is Adobe's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Adobe
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Adobe's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Adobe's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 30 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2003 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.9% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-11-30 | ||
| 2022-11-30 | ||
| 2021-11-30 | 0.00 | 4.00 |
| 2020-11-30 | 0.00 | 5.00 |
| 2019-11-30 | 0.00 | 5.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Adobe has not reported any payouts.
- Unable to verify if Adobe's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Adobe's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Adobe afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Adobe has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
ADBE Management
CEO
| COMPENSATION | $28,397,528 |
| AGE | 54 |
| TENURE AS CEO | 11.3 years |
CEO Bio
Mr. Shantanu Narayen has been Chairman of Adobe Systems Incorporated since January 2017 and has been its Chief Executive Officer since December 01, 2007 and has been President since January 2005. Mr. Narayen has been Chief Executive Officer of Adobe Systems Software Ireland Limited since 2007 and serves as its President. He serves as Senior Advisor of KKR & Co. Inc. (formerly, KKR & Co. L.P.). He served as the Chief Operating Officer of Adobe Systems Inc. from January 2005 to December 2007 and served as its Executive Vice President of Worldwide Product Marketing & Development from March 2001 to January 2005. He joined Adobe Systems Incorporated in January 1998 as Vice President and General Manager of engineering technology group and in January 1999, he was promoted to Senior Vice President of worldwide product development. Before joining Adobe Systems Incorporated, Mr. Narayen co-founded Pictra, Inc. He served as Director of desktop and collaboration products at Silicon Graphics, Inc. and served various senior management positions at Apple Computer, Inc. He has been Director of Adobe Systems Incorporated since December 01, 2007 and Pfizer Inc. since September 27, 2013. He has been Lead Independent Director of Pfizer Inc., since 2018. He serves as a Director of Adobe Systems Software Ireland Limited and Stario.com. He served as Director of Metavante Technologies, Inc. since November 14, 2007 and Dell Inc. from September 2009 to October 29, 2013. Mr. Narayen is a member of the U.S. President's Management Advisory Board, established in 2010 to provide advice on how to implement best business practices, including the application of technology, on matters related to federal government management and operation. He serves on the Advisory Board of the Haas School of Business, University of California at Berkeley and is President of the board of the Adobe Foundation, which funds philanthropic initiatives around the world. He holds five patents and is a frequent speaker at industry and academic events. Mr. Narayen is Vice Chairman of US-India Strategic Partnership Forum. Mr. Narayen holds Bachelor's Degree, B.S. in Electronics Engineering from Osmania University in India, a Master's degree, M.S. in Computer Science from Bowling Green State University and a Master's Degree, M.B.A. in Business Administration from the Haas School of Business, University of California, Berkeley.
CEO Compensation
- Shantanu's compensation has increased by more than 20% in the past year.
- Shantanu's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Adobe management team in years:
- The tenure for the Adobe management team is about average.
Management Team
Shantanu Narayen
Chairman
$28M
54
11.3 yrs
John Warnock
Co-Founder & Director
$324K
77
37.2 yrs
Charles Geschke
Co-Founder & Director
$324K
79
37.2 yrs
John Murphy
Executive VP & CFO
$8M
49
0.9 yrs
Bryan Lamkin
Executive VP & General Manager of Digital Media
$8M
57
3.5 yrs
Scott Belsky
Chief Product Officer & Executive VP of Creative Cloud
$13M
38
1.3 yrs
Mark Garfield
VP, Chief Accounting Officer & Corporate Controller
47
0.3 yrs
Abhay Parasnis
Executive VP & CTO
$7M
43
3.7 yrs
Cindy Stoddard
Senior VP & Chief Information Officer
61
2.8 yrs
Mike Saviage
Vice President of Investor Relations
23.3 yrs
Board of Directors Tenure
Average tenure and age of the Adobe board of directors in years:
- The tenure for the Adobe board of directors is about average.
Board of Directors
Shantanu Narayen
Chairman
$28M
54
2.2 yrs
John Warnock
Co-Founder & Director
$324K
77
36.2 yrs
Charles Geschke
Co-Founder & Director
$324K
79
36.2 yrs
James Daley
Lead Director
$397K
76
2.2 yrs
Amy Banse
MD & Director
$355K
60
6.8 yrs
Frank Calderoni
Director
$370K
61
6.8 yrs
Ned Barnholt
Independent Director
$346K
74
13.5 yrs
Robert Burgess
Director
$344K
60
13.3 yrs
Dan Rosensweig
Director
$351K
56
10.2 yrs
Laura Desmond
Independent Director
$342K
52
6.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 21. Mar 19 | Sell | John Warnock | Individual | 20. Mar 19 | 20. Mar 19 | -2,000 | $260.47 | $-520,939 | ||
| 20. Mar 19 | Sell | Dana Rao | Individual | 18. Mar 19 | 18. Mar 19 | -5,955 | $255.08 | $-1,518,977 | ||
| 31. Jan 19 | Sell | Bradley Rencher | Individual | 31. Jan 19 | 31. Jan 19 | -30,000 | $246.46 | $-7,393,722 | ||
| 31. Jan 19 | Sell | Abhay Parasnis | Individual | 30. Jan 19 | 30. Jan 19 | -25,000 | $240.00 | $-6,000,020 | ||
| 31. Jan 19 | Sell | Bryan Lamkin | Individual | 29. Jan 19 | 29. Jan 19 | -34,764 | $238.52 | $-8,291,798 | ||
| 21. Dec 18 | Buy | David Ricks | Individual | 20. Dec 18 | 20. Dec 18 | 75 | $216.58 | $16,244 | ||
| 02. Nov 18 | Sell | Bradley Rencher | Individual | 01. Nov 18 | 01. Nov 18 | -12,000 | $245.30 | $-2,943,560 | ||
| 26. Sep 18 | Buy | David Ricks | Individual | 24. Sep 18 | 24. Sep 18 | 75 | $261.43 | $19,607 | ||
| 27. Jul 18 | Sell | Bradley Rencher | Individual | 25. Jul 18 | 25. Jul 18 | -15,000 | $262.34 | $-3,935,172 | ||
| 19. Jun 18 | Sell | Charles Geschke | Individual | 18. Jun 18 | 18. Jun 18 | -6,000 | $255.19 | $-1,531,155 | ||
| 20. Apr 18 | Sell | Charles Geschke | Individual | 20. Apr 18 | 20. Apr 18 | -16,000 | $225.08 | $-3,589,624 | ||
| 13. Apr 18 | Sell | John Warnock | Individual | 11. Apr 18 | 11. Apr 18 | -965 | $223.77 | $-215,940 | ||
| 02. Apr 18 | Sell | John Warnock | Individual | 29. Mar 18 | 29. Mar 18 | -14,000 | $218.00 | $-3,031,363 | ||
Management checks
We assess Adobe's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Adobe has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
ADBE News
Simply Wall St News
If You Had Bought Adobe (NASDAQ:ADBE) Stock Five Years Ago, You Could Pocket A 283% Gain Today
(NASDAQ:ADBE) which saw its share price drive 283% higher over five years. … During five years of share price growth, Adobe achieved compound earnings per share (EPS) growth of 59% per year. … This EPS growth is higher than the 31% average annual increase in the share price.
Simply Wall St - – Full articleIs It Time To Consider Buying Adobe Inc. (NASDAQ:ADBE)?
led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?
Simply Wall St - – Full articleDo You Like Adobe Inc. (NASDAQ:ADBE) At This P/E Ratio?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use Adobe Inc.'s (NASDAQ:ADBE) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhat Should Investors Know About Adobe Inc.'s (NASDAQ:ADBE) Growth?
Help shape the future of investing tools and receive a $20 prize! … Looking at Adobe Inc.'s (NASDAQ:ADBE) earnings update on 30 November 2018, … analyst consensus outlook appear cautiously subdued,
Simply Wall St - – Full articleHow Much Are Adobe Inc. (NASDAQ:ADBE) Insiders Taking Off The Table?
So we'll take a look at whether insiders have been buying or selling shares in Adobe Inc. … Adobe Insider Transactions Over The Last Year. … So it's clear an insider wanted to take some cash off the table, even below the current price of US$254.
Simply Wall St - – Full articleDo Institutions Own Adobe Inc. (NASDAQ:ADBE) Shares?
Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We'd expect to see both institutions and retail investors owning a portion of the company. … Taking a look at the our data on the ownership groups (below), it's seems that.
Simply Wall St - – Full articleWant To Invest In Adobe Inc. (NASDAQ:ADBE) Today? Read This First
(NASDAQ:ADBE) is considered a high-growth stock, but its last closing price of $247.51 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … One reason why investors are attracted to ADBE is the high growth potential in the near future
Simply Wall St - – Full articleAdobe Inc. (NASDAQ:ADBE): What Does The Future Look Like?
The latest earnings release Adobe Inc.'s (NASDAQ:ADBE) announced in November 2018a … indicated
Simply Wall St - – Full articleWhat Can We Make Of Adobe Inc.’s (NASDAQ:ADBE) High Return On Capital?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleIs Adobe Inc. (NASDAQ:ADBE) Overpaying Its CEO?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Shantanu Narayen's Compensation Compare With Similar Sized Companies. … has a market cap of US$112b, and is paying total annual CEO compensation of US$22m.
Simply Wall St - – Full articleADBE Company Info
Description
Adobe Inc. operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customer to download and access the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The company’s Digital Experience segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social marketing, targeting, media optimization, digital experience management, cross-channel campaign management, marketing automation, audience management, and video delivery and monetization solutions to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. Its Publishing segment offers products and services, such as e-learning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company offers its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and OEMs. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. The company was founded in 1982 and is headquartered in San Jose, California.
Details
| Name: | Adobe Inc. |
| ADBE | |
| Exchange: | NasdaqGS |
| Founded: | 1982 |
| $127,018,238,512 | |
| 489,114,862 | |
| Website: | http://www.adobe.com |
| Address: |
Adobe Inc. 345 Park Avenue, San Jose, California, 95110, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | ADBE | Common Stock | Nasdaq Global Select | US | USD | 13. Aug 1986 | |
| DB | ADB | Common Stock | Deutsche Boerse AG | DE | EUR | 13. Aug 1986 | |
| SWX | ADBE | Common Stock | SIX Swiss Exchange | CH | CHF | 13. Aug 1986 | |
| WBAG | ADBE | Common Stock | Wiener Boerse AG | AT | EUR | 13. Aug 1986 | |
| BMV | ADBE * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 13. Aug 1986 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/23 23:32 |
| End of day share price update: | 2019/03/22 00:00 |
| Last estimates confirmation: | 2019/03/22 |
| Last earnings filing: | 2019/03/14 |
| Last earnings reported: | 2019/03/01 |
| Last annual earnings reported: | 2018/11/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
