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

ADBE is good value based on its Price-To-Earnings Ratio (42.4x) compared to the peer average (74.6x).

How does ADBE's PE Ratio compare vs other companies in the US Software Industry?

ADBE is expensive based on its Price-To-Earnings Ratio (42.4x) compared to the US Software industry average (42.2x).

What is ADBE'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.

ADBE is good value based on its Price-To-Earnings Ratio (42.4x) compared to the estimated Fair Price-To-Earnings Ratio (52.4x).

What is the Fair Price of ADBE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ADBE ($516.2) is trading below our estimate of [[fair value]] ($762.96)

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Target price is less than 20% higher than the current share price.

Adobe (Nasdaq:ADBE) - Stock Price, News & Analysis

ADBE Stock Overview

Operates as a diversified software company worldwide. More details

ADBE fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

Rewards

Trading at 32.3% below our estimate of its fair value

Earnings are forecast to grow 15.13% per year

Earnings have grown 7.5% per year over the past 5 years

Risk Analysis

Significant insider selling over the past 3 months

Community Narratives

Create a narrative

Narratives bring a range of perspectives from our community.

WarrenAI

Based on Analyst Price Targets

Elevating Business Horizons, AI Innovations Fuel Company's Growth And Profit Margins

Key Takeaways Adobe's AI integration, notably with Firefly and Acrobat AI Assistant, aims to boost engagement, productivity, and ultimately, revenue and ARR growth. Strategic focus on Creative Cloud, Document Cloud, Experience Cloud, and AI technologies is set to enhance market share, revenue, and operational efficiency.

View narrative

US$613.11

15.8% undervalued

11.14%

Revenue growth p.a.

5 days ago

WallStreetWontons

Community Contributor

Adobe’s Canvas of Creativity: Monetizing Imagination with AI in its suite

Catalysts Products and Services Impacting Sales and Earnings : Adobe has a diverse portfolio of products and services that contribute to its revenue growth. Here are some key highlights: Creative Cloud : Adobe’s Creative Cloud suite includes popular software like Photoshop, Illustrator, and Premiere Pro.

View narrative

US$898.28

42.5% undervalued

16.66%

Revenue growth p.a.

3 months ago

Bailey

Equity Analyst

Increasing Total Addressable Market Through AI Will Strengthen Revenue Growth

Key Takeaways Adopting new technology like AI, AR/VR and browser-first cloud software will keep Adobe on top of the creative industry. AI Integration will empower commercial users and help onboard new users by making workflows simpler.

View narrative

US$705.22

26.8% undervalued

16.70%

Revenue growth p.a.

2 months ago

Goran_Damchevski

Equity Analyst

Competition, Costs and Playing Catchup Will Compress Margins

Key Takeaways Slowing growth and margin pressure by new tech will force low return reinvestment Buying Figma is cheaper than competing, but regulators may block Experience Cloud is a growth story, but not Adobe's strong suit High-quality business, but high-growth perception is unsustainable and will likely subside Catalysts Company Catalysts Margins compressing from AI-driven design The adoption of AI-driven design - the $63B TAM can improve as more people utilize creative works, but the profitability of such projects may decline due to the higher availability of AI driven design. This may result in more revenue but lower profitability for Adobe.

View narrative

US$317.27

62.7% overvalued

9.00%

Revenue growth p.a.

2 months ago

Adobe Inc. Competitors

Intuit

NasdaqGS:INTU

US$179.7b

Salesforce

NYSE:CRM

US$315.5b

AppLovin

NasdaqGS:APP

US$113.0b

Cadence Design Systems

NasdaqGS:CDNS

US$84.1b

Price History & Performance

Summary of all time highs, changes and price drops for Adobe
Historical stock prices
Current Share Price	US$516.20
52 Week High	US$638.25
52 Week Low	US$433.97
Beta	1.3
11 Month Change	6.92%
3 Month Change	-9.60%
1 Year Change	-14.62%
33 Year Change	-17.02%
5 Year Change	68.12%
Change since IPO	92,961.32%

Adobe: Upgrading Into Earnings, Eyes On Firefly, Mixed Chart

Dec 03

Adobe Inc. (NASDAQ:ADBE) Shares Could Be 28% Below Their Intrinsic Value Estimate

Nov 28

Adobe: An AI Laggard Not Worth Buying (Technical Analysis)

Nov 22

Recent updates

Adobe: Upgrading Into Earnings, Eyes On Firefly, Mixed Chart

Dec 03

Adobe Inc. (NASDAQ:ADBE) Shares Could Be 28% Below Their Intrinsic Value Estimate

Nov 28

Adobe (NASDAQ:ADBE) Is Posting Promising Earnings But The Good News Doesn’t Stop There

Oct 02

Adobe: Buy Unwarranted Pullback, Robust SaaS Monetization

Sep 21

Adobe Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Sep 16

Adobe: Awaiting Clearer Signs Of Revenue Acceleration

Sep 15

Adobe: The Market Is Changing, And Growth Is Decelerating (Rating Downgrade)

Sep 09

Adobe Stock Looks Like A Fully-Priced Story

Aug 23

We Think Adobe (NASDAQ:ADBE) Can Manage Its Debt With Ease

Aug 13

Adobe Outlook: A Case For Holding The Position

Jul 23

Adobe: AI Developments Galore

Jul 11

Adobe: Ride The Winning Generative AI Play

Jul 04

Adobe: Don't Expect It To Beat The Market Long-Term (Rating Downgrade)

Jun 27

Adobe: Q2 Showed The Monetization Power Of Company's AI Tools

Jun 20

Adobe Inc. (NASDAQ:ADBE) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Jun 16

Adobe Q2 Earnings: Picture-Perfect Priced In

Jun 14

Is There An Opportunity With Adobe Inc.'s (NASDAQ:ADBE) 22% Undervaluation?

Jun 02

Adobe (NASDAQ:ADBE) Is Achieving High Returns On Its Capital

May 21

Adobe: Generative AI Fears Create An Opportunity (Ratings Upgrade)

May 17

Why Investors Shouldn't Be Surprised By Adobe Inc.'s (NASDAQ:ADBE) P/E

May 08

We Think Adobe (NASDAQ:ADBE) Can Manage Its Debt With Ease

Apr 26

Adobe Has A Weak AI Monetization Strategy

Apr 16

Should You Investigate Adobe Inc. (NASDAQ:ADBE) At US$474?

Apr 14

Adobe: Strong Fundamentals Overshadowed By Growth Uncertainty, Hold Rating

Apr 05

Adobe: AI Story Is On Right Track, Time To Be Patient (Rating Upgrade)

Mar 26

Adobe (NASDAQ:ADBE) Is Posting Promising Earnings But The Good News Doesn’t Stop There

Mar 21

Adobe: AI Is Not An Enemy, But An Ally - Buy The Weakness (Rating Upgrade)

Mar 18

Shareholder Returns

	ADBE	US Software	US Market
7D	-0.5%	0.8%	0.7%
1Y	-14.6%	25.6%	32.2%

Return vs Industry: ADBE underperformed the US Software industry which returned 25.6% over the past year.

Return vs Market: ADBE underperformed the US Market which returned 32.2% over the past year.

Price Volatility

Is ADBE's price volatile compared to industry and market?
ADBE volatility
ADBE Average Weekly Movement	4.4%
Software Industry Average Movement	7.5%
Market Average Movement	6.3%
10% most volatile stocks in US Market	16.4%
10% least volatile stocks in US Market	3.1%

Stable Share Price: ADBE has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: ADBE's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	29,945	Shantanu Narayen	www.adobe.com

Adobe Inc., together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.

Adobe Inc. Fundamentals Summary

How do Adobe's earnings and revenue compare to its market cap?
ADBE fundamental statistics
Market cap	US$227.11b
Earnings (TTM)	US$5.36b
Revenue (TTM)	US$20.95b

42.4x

P/E Ratio

10.8x

P/S Ratio

Is ADBE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
ADBE income statement (TTM)
Revenue	US$20.95b
Cost of Revenue	US$2.38b
Gross Profit	US$18.57b
Other Expenses	US$13.21b
Earnings	US$5.36b

Last Reported Earnings

Aug 30, 2024

Next Earnings Date

Dec 11, 2024

Earnings per share (EPS)	12.18
Gross Margin	88.66%
Net Profit Margin	25.59%
Debt/Equity Ratio	38.7%

How did ADBE perform over the long term?

See historical performance and comparison

ADBE Stock Overview

Rewards

Risk Analysis

Elevating Business Horizons, AI Innovations Fuel Company's Growth And Profit Margins

Adobe’s Canvas of Creativity: Monetizing Imagination with AI in its suite

Increasing Total Addressable Market Through AI Will Strengthen Revenue Growth

Competition, Costs and Playing Catchup Will Compress Margins

Adobe Inc. Competitors

NasdaqGS:INTU

US$179.7b

NYSE:CRM

US$315.5b

NasdaqGS:APP

US$113.0b

NasdaqGS:CDNS

US$84.1b

Price History & Performance

Recent News & Updates

Adobe: Upgrading Into Earnings, Eyes On Firefly, Mixed Chart

Adobe Appoints Lara Balazs as Chief Marketing Officer and Executive Vice President, Global Marketing

Adobe Inc. (NASDAQ:ADBE) Shares Could Be 28% Below Their Intrinsic Value Estimate

Executive VP notifies of intention to sell stock

Adobe: An AI Laggard Not Worth Buying (Technical Analysis)

CFO and Executive VP of Finance exercised options and sold US$1.0m worth of stock

Recent updates

Adobe: Upgrading Into Earnings, Eyes On Firefly, Mixed Chart

Adobe Appoints Lara Balazs as Chief Marketing Officer and Executive Vice President, Global Marketing

Adobe Inc. (NASDAQ:ADBE) Shares Could Be 28% Below Their Intrinsic Value Estimate

Executive VP notifies of intention to sell stock

Adobe: An AI Laggard Not Worth Buying (Technical Analysis)

CFO and Executive VP of Finance exercised options and sold US$1.0m worth of stock

Executive VP notifies of intention to sell stock

Adobe: The #1 "Digital Experience Platform" Is At A Discount

Adobe (NASDAQ:ADBE) Knows How To Allocate Capital Effectively

Adobe: Wall Street Eyes A Slowdown, But Ignores The Cash Flow Story

Adobe's Innovative Push Into AI Secures Long-Term Growth

Adobe Announces the General Availability of the Next Generation of Frame.io

Adobe Max Announces Beta Availability of Premiere Pro’s First Set of Firefly-Powered Video Editing Workflows Powered by the New Firefly Video Model (Beta)

Adobe Inc.'s (NASDAQ:ADBE) Price In Tune With Earnings

Adobe Express Accelerates On-Brand Content Creation for Global Enterprises with New Capabilities

Adobe (NASDAQ:ADBE) Is Posting Promising Earnings But The Good News Doesn’t Stop There

Chairman & CEO recently sold US$13m worth of stock

Executive VP notifies of intention to sell stock

Adobe: Buy Unwarranted Pullback, Robust SaaS Monetization

CFO and Executive VP of Finance recently sold US$3.4m worth of stock

CFO and Executive VP of Finance notifies of intention to sell stock

Adobe Unveils Innovations in Adobe Experience Cloud

Adobe Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Adobe Unveils Innovations in Adobe Experience Cloud

Adobe: Awaiting Clearer Signs Of Revenue Acceleration

Third quarter 2024 earnings: EPS exceeds analyst expectations

Adobe Inc. Provides Earnings Guidance for the Fourth Quarter of Fiscal Year 2024

Adobe: The Market Is Changing, And Growth Is Decelerating (Rating Downgrade)

Adobe Stock Looks Like A Fully-Priced Story

CFO and Executive VP of Finance exercised options and sold US$1.1m worth of stock

We Think Adobe (NASDAQ:ADBE) Can Manage Its Debt With Ease

Adobe Outlook: A Case For Holding The Position

Adobe Inc. Announces Resignation of Mark Garfield as Senior Vice President and Chief Accounting Officer, Effective as of August 9, 2024

Adobe: AI Developments Galore

Adobe: Ride The Winning Generative AI Play

Chairman & CEO recently sold US$14m worth of stock

Adobe: Don't Expect It To Beat The Market Long-Term (Rating Downgrade)

Executive VP recently sold US$3.6m worth of stock

Adobe: Q2 Showed The Monetization Power Of Company's AI Tools

Executive VP notifies of intention to sell stock

Adobe Reimagines PDFs by Integrating Adobe Firefly into Acrobat and Adding Support for Chat Across Multiple Documents in Acrobat

Adobe Inc. (NASDAQ:ADBE) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Second quarter 2024 earnings: EPS exceeds analyst expectations

Adobe Q2 Earnings: Picture-Perfect Priced In

Adobe Inc. to Report Q2, 2024 Results on Jun 13, 2024

Is There An Opportunity With Adobe Inc.'s (NASDAQ:ADBE) 22% Undervaluation?

Now 22% undervalued after recent price drop

Adobe Inc. Announces the New Adobe Express for Enterprise

Adobe (NASDAQ:ADBE) Is Achieving High Returns On Its Capital

Adobe: Generative AI Fears Create An Opportunity (Ratings Upgrade)

Adobe Launches Acrobat AI Assistant for the Enterprise Customers

Why Investors Shouldn't Be Surprised By Adobe Inc.'s (NASDAQ:ADBE) P/E

Insider notifies of intention to sell stock

Now 20% undervalued after recent price drop

We Think Adobe (NASDAQ:ADBE) Can Manage Its Debt With Ease