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Adobe

Nasdaq:ADBE
Snowflake Description

Outstanding track record with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ADBE
Nasdaq
$121B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Adobe Inc. operates as a diversified software company worldwide. The last earnings update was 40 days ago. More info.


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ADBE Share Price and Events
7 Day Returns
0.6%
NasdaqGS:ADBE
4.1%
US Software
3.2%
US Market
1 Year Returns
21.9%
NasdaqGS:ADBE
17%
US Software
-6.5%
US Market
ADBE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Adobe (ADBE) 0.6% 16.8% 2.3% 21.9% 180.6% 312.5%
US Software 4.1% 13.1% 3.9% 17% 99.1% 128.1%
US Market 3.2% 11.4% -1.4% -6.5% 42.1% 41.6%
1 Year Return vs Industry and Market
  • ADBE outperformed the Software industry which returned 17% over the past year.
  • ADBE outperformed the Market in United States of America which returned -6.5% over the past year.
Price Volatility
ADBE
Industry
5yr Volatility vs Market
Related Companies

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Adobe.

NasdaqGS:ADBE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 29 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11%
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.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ADBE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Software Unlevered Beta Simply Wall St/ S&P Global 1.11
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.106 (1 + (1- 21%) (3.41%))
1.135
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.135 * 7.27%)
10.98%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ADBE DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 4,432.04 5,284.08 5,901.42 6,611.00 7,681.00
Source Analyst x19 Analyst x19 Analyst x4 Analyst x1 Analyst x1
Present Value
Discounted (@ 10.98%)
3,993.39 4,289.89 4,316.89 4,357.32 4,561.51
Present value of next 5 years cash flows $21,519.00
NasdaqGS:ADBE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $7,681.00 × (1 + 2.73%) ÷ (10.98% – 2.73%)
$95,593.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $95,593.88 ÷ (1 + 10.98%)5
$56,770.23
NasdaqGS:ADBE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $21,519.00 + $56,770.23
$78,289.22
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $78,289.22 / 488.13
$160.38
NasdaqGS:ADBE Discount to Share Price
Calculation Result
Value per share (USD) From above. $160.38
Current discount Discount to share price of $243.85
= -1 x ($243.85 - $160.38) / $160.38
-52%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NasdaqGS:ADBE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-11-30) in USD $5.28
NasdaqGS:ADBE Share Price ** NasdaqGS (2019-01-22) in USD $243.85
United States of America Software Industry PE Ratio Median Figure of 74 Publicly-Listed Software Companies 45.01x
United States of America Market PE Ratio Median Figure of 3,026 Publicly-Listed Companies 17.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Adobe.

NasdaqGS:ADBE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ADBE Share Price ÷ EPS (both in USD)

= 243.85 ÷ 5.28

46.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Adobe is overvalued 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?
Raw Data
NasdaqGS:ADBE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts
19.3%per year
United States of America Software Industry PEG Ratio Median Figure of 59 Publicly-Listed Software Companies 3.27x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NasdaqGS:ADBE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 46.17x ÷ 19.3%

2.39x

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?
Raw Data
NasdaqGS:ADBE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-11-30) in USD $19.17
NasdaqGS:ADBE Share Price * NasdaqGS (2019-01-22) in USD $243.85
United States of America Software Industry PB Ratio Median Figure of 218 Publicly-Listed Software Companies 5.16x
United States of America Market PB Ratio Median Figure of 5,101 Publicly-Listed Companies 1.77x
NasdaqGS:ADBE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ADBE Share Price ÷ Book Value per Share (both in USD)

= 243.85 ÷ 19.17

12.72x

* 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.
X
Value checks
We assess Adobe's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Adobe has a total score of 0/6, 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 29 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!
Annual Growth Rate
19.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Adobe expected to grow at an attractive rate?
  • 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
Raw Data
NasdaqGS:ADBE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ADBE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts 19.3%
NasdaqGS:ADBE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 29 Analysts 14.5%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 19.4%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.6%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NasdaqGS:ADBE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ADBE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-11-30 19,690 8,122 6,140 4
2022-11-30 17,354 7,004 5,209 4
2021-11-30 14,978 6,405 4,438 11
2020-11-30 13,146 5,605 3,645 28
2019-11-30 11,157 4,716 2,806 29
NasdaqGS:ADBE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-11-30 9,030 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.

Super high growth metrics
High Growth Checks
  • Adobe's earnings are expected to grow by 19.3% yearly, however this is not considered high growth (20% yearly).
  • Adobe's revenue is expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ADBE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below

All data from Adobe Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ADBE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-11-30 13.19 13.75 12.63 2.00
2022-11-30 11.00 11.37 10.62 2.00
2021-11-30 9.08 9.84 8.61 6.00
2020-11-30 7.44 8.02 6.99 16.00
2019-11-30 5.70 6.02 5.53 16.00
NasdaqGS:ADBE Past Financials Data
Date (Data in USD Millions) EPS *
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Adobe is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Adobe's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Adobe's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Adobe has delivered over 20% year on year earnings growth in the past 5 years.
  • Adobe's 1-year earnings growth exceeds its 5-year average (53% vs 45.2%)
  • Adobe's earnings growth has exceeded the US Software industry average in the past year (53% vs 16.5%).
Earnings and Revenue History
Adobe's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Adobe Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ADBE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
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
2012-03-02 4,233.77 783.47 1,833.01 737.38

*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).
X
Past performance checks
We assess Adobe's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Adobe has a total score of 6/6, 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.
Net Worth
  • Adobe is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Adobe's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Adobe's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Adobe Company Filings, last reported 1 month ago.

NasdaqGS:ADBE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-11-30 9,362.11 4,124.80 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
2012-03-02 5,986.30 1,512.21 2,766.12
  • Adobe's level of debt (44.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (22.5% vs 44.1% today).
  • Debt is well covered by operating cash flow (91%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 57.1x coverage).
X
Financial health checks
We assess Adobe's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Adobe has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from Adobe dividends. Estimated to be 0% next year.
If you bought $2,000 of Adobe shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NasdaqGS:ADBE Annualized Past and Future Dividends
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 29 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 1986 Stocks 2.6%
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.

NasdaqGS:ADBE Future Dividends Estimate Data
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.
Current Payout to shareholders
What portion of Adobe's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Adobe has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Adobe's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Adobe's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Adobe's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shantanu Narayen
COMPENSATION $21,934,030
AGE 54
TENURE AS CEO 11.1 years
CEO Bio

Mr. Shantanu Narayen has been Chairman of Adobe Systems Incorporated since February 1, 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 held key product research and development positions within Adobe, including Senior Vice President of worldwide product development and Vice President and General Manager of the engineering technology group. Before joining Adobe in 1998, 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 been consistent with company performance over 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:

6.3
Average Tenure
55.5
Average Age
  • The average tenure for the Adobe management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Shantanu Narayen

TITLE
Chairman
COMPENSATION
$22M
AGE
54
TENURE
11.1 yrs

John Warnock

TITLE
Co-Founder & Director
COMPENSATION
$331K
AGE
77
TENURE
37 yrs

Charles Geschke

TITLE
Co-Founder & Director
COMPENSATION
$331K
AGE
79
TENURE
37 yrs

Bryan Lamkin

TITLE
Executive VP & General Manager of Digital Media
COMPENSATION
$7M
AGE
57
TENURE
3.3 yrs

Matt Thompson

TITLE
Executive Vice President of Worldwide Field Operations
COMPENSATION
$8M
AGE
59
TENURE
12 yrs

Brad Rencher

TITLE
Executive VP & GM of Digital Experience
COMPENSATION
$7M
AGE
44
TENURE
9 yrs

John Murphy

TITLE
Executive VP & CFO
AGE
49
TENURE
0.8 yrs

Mark Garfield

TITLE
Vice President
AGE
47
TENURE
0.1 yrs

Abhay Parasnis

TITLE
Executive VP & CTO
COMPENSATION
$7M
AGE
43
TENURE
3.5 yrs

Cindy Stoddard

TITLE
Senior VP & Chief Information Officer
AGE
61
TENURE
2.6 yrs
Board of Directors Tenure

Average tenure and age of the Adobe board of directors in years:

8.3
Average Tenure
60.5
Average Age
  • The tenure for the Adobe board of directors is about average.
Board of Directors

Shantanu Narayen

TITLE
Chairman
COMPENSATION
$22M
AGE
54
TENURE
2 yrs

John Warnock

TITLE
Co-Founder & Director
COMPENSATION
$331K
AGE
77
TENURE
36 yrs

Charles Geschke

TITLE
Co-Founder & Director
COMPENSATION
$331K
AGE
79
TENURE
36 yrs

Ned Barnholt

TITLE
Independent Director
COMPENSATION
$353K
AGE
74
TENURE
13.3 yrs

Amy Banse

TITLE
MD & Director
COMPENSATION
$338K
AGE
60
TENURE
6.7 yrs

Frank Calderoni

TITLE
Director
COMPENSATION
$363K
AGE
61
TENURE
6.7 yrs

James Daley

TITLE
Lead Director
COMPENSATION
$383K
AGE
76
TENURE
2 yrs

Robert Burgess

TITLE
Director
COMPENSATION
$343K
AGE
60
TENURE
13.1 yrs

Dan Rosensweig

TITLE
Director
COMPENSATION
$360K
AGE
56
TENURE
10 yrs

Laura Desmond

TITLE
Independent Director
COMPENSATION
$345K
AGE
52
TENURE
6.7 yrs
Who owns this company?
Recent Insider Trading
  • Adobe insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
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
21. Mar 18 Sell John Warnock Individual 19. Mar 18 20. Mar 18 -5,000 $229.56 $-1,124,723
01. Feb 18 Sell Bryan Lamkin Individual 31. Jan 18 31. Jan 18 -30,000 $199.08 $-5,972,355
29. Jan 18 Sell Matthew Thompson Individual 26. Jan 18 26. Jan 18 -50,775 $200.08 $-10,158,884
X
Management checks
We assess Adobe's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Want 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 -

Adobe 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 -

What 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 -

Is 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 -

Why You Should Buy Adobe Inc (NASDAQ:ADBE) In This Bear Market

Stock market crashes are an opportune time to buy. … High quality companies, such as Adobe Inc, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … Check out our latest analysis for Adobe.

Simply Wall St -

Adobe Inc (NASDAQ:ADBE): Immense Growth Potential?

After Adobe Inc's (NASDAQ:ADBE) earnings announcement in August 2018, … the consensus outlook from analysts appear fairly confident, … with profits predicted to increase by 26% next year,

Simply Wall St -

What Price Should You Be Buying Adobe Inc's (NASDAQ:ADBE)?

Deciding if you should use a relative valuation model over an intrinsic valuation model can be a difficult choice for many investors. … A prime example of conflicts between valuation models is Adobe Inc's (NASDAQ:ADBE). … While my discounted cash flow (DCF) model tells me that it is undervalued by 33.6%, my relative valuation model says it is overvalued by 40.56%.

Simply Wall St -

Is It Too Late To Consider Buying Adobe Inc (NASDAQ:ADBE)?

saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $275.49 and falling to the lows of $237.91. … This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Adobe's current trading price of $245.03 reflective of the actual value of the?

Simply Wall St -

Is It Too Late To Buy Adobe Inc (NASDAQ:ADBE) At Its October Price?

Adobe Inc (NASDAQ:ADBE) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $237.91 is based on unrealistic expectations. … Where's the growth. … The excitement around Adobe's growth potential is not unfounded

Simply Wall St -

How Adobe Systems Incorporated's (NASDAQ:ADBE) Earnings Growth Stacks Up Against The Industry

Investors with a long-term horizong may find it valuable to assess Adobe Systems Incorporated's (NASDAQ:ADBE) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … Below is my commentary, albiet very simple and high-level, on how Adobe Systems is currently performing. … Check out our latest analysis for Adobe Systems?

Simply Wall St -

ADBE Company Info

Map
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 customers to download and install 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 Marketing 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, 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 Print and 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 markets and licenses 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, independent software vendors, 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
$120,817,929,267
488,133,527
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
Staff numbers
17,973
Adobe employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/22 23:32
End of day share price update: 2019/01/22 00:00
Last estimates confirmation: 2019/01/18
Last earnings filing: 2018/12/13
Last earnings reported: 2018/11/30
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.