ADOBE INC (ADBE) Fundamental Analysis & Valuation

NASDAQ:ADBE • US00724F1012

Current stock price

248.155 USD
+3.5 (+1.43%)
At close:
254.266 USD
+6.11 (+2.46%)
Pre-Market:

This ADBE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ADBE Profitability Analysis

1.1 Basic Checks

  • ADBE had positive earnings in the past year.
  • In the past year ADBE had a positive cash flow from operations.
  • In the past 5 years ADBE has always been profitable.
  • In the past 5 years ADBE always reported a positive cash flow from operatings.
ADBE Yearly Net Income VS EBIT VS OCF VS FCFADBE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • With an excellent Return On Assets value of 24.27%, ADBE belongs to the best of the industry, outperforming 97.42% of the companies in the same industry.
  • ADBE's Return On Equity of 63.05% is amongst the best of the industry. ADBE outperforms 97.05% of its industry peers.
  • ADBE has a better Return On Invested Capital (39.60%) than 98.16% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ADBE is significantly above the industry average of 10.91%.
  • The last Return On Invested Capital (39.60%) for ADBE is above the 3 year average (31.10%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 24.27%
ROE 63.05%
ROIC 39.6%
ROA(3y)20.26%
ROA(5y)19.2%
ROE(3y)44.54%
ROE(5y)40.01%
ROIC(3y)31.1%
ROIC(5y)28.47%
ADBE Yearly ROA, ROE, ROICADBE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 29.48%, ADBE belongs to the top of the industry, outperforming 92.25% of the companies in the same industry.
  • ADBE's Profit Margin has declined in the last couple of years.
  • ADBE's Operating Margin of 36.65% is amongst the best of the industry. ADBE outperforms 96.31% of its industry peers.
  • ADBE's Operating Margin has been stable in the last couple of years.
  • ADBE has a better Gross Margin (89.40%) than 96.68% of its industry peers.
  • ADBE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 36.65%
PM (TTM) 29.48%
GM 89.4%
OM growth 3Y1.88%
OM growth 5Y1.28%
PM growth 3Y3.55%
PM growth 5Y-6%
GM growth 3Y0.59%
GM growth 5Y0.6%
ADBE Yearly Profit, Operating, Gross MarginsADBE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. ADBE Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ADBE is creating value.
  • ADBE has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ADBE has been reduced compared to 5 years ago.
  • The debt/assets ratio for ADBE is higher compared to a year ago.
ADBE Yearly Shares OutstandingADBE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ADBE Yearly Total Debt VS Total AssetsADBE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • ADBE has an Altman-Z score of 7.30. This indicates that ADBE is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ADBE (7.30) is better than 83.76% of its industry peers.
  • ADBE has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
  • The Debt to FCF ratio of ADBE (0.60) is better than 77.49% of its industry peers.
  • A Debt/Equity ratio of 0.47 indicates that ADBE is not too dependend on debt financing.
  • ADBE has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: ADBE underperforms 64.21% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for ADBE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 0.6
Altman-Z 7.3
ROIC/WACC3.79
WACC10.44%
ADBE Yearly LT Debt VS Equity VS FCFADBE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.91 indicates that ADBE may have some problems paying its short term obligations.
  • With a Current ratio value of 0.91, ADBE is not doing good in the industry: 80.81% of the companies in the same industry are doing better.
  • ADBE has a Quick Ratio of 0.91. This is a bad value and indicates that ADBE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of ADBE (0.91) is worse than 79.34% of its industry peers.
  • ADBE does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.91
ADBE Yearly Current Assets VS Current LiabilitesADBE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ADBE Growth Analysis

3.1 Past

  • ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.30%, which is quite good.
  • ADBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.87% yearly.
  • Looking at the last year, ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.96% in the last year.
  • Measured over the past years, ADBE shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
EPS 1Y (TTM)15.3%
EPS 3Y15.15%
EPS 5Y15.87%
EPS Q2Q%19.29%
Revenue 1Y (TTM)10.96%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%11.97%

3.2 Future

  • ADBE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.91% yearly.
  • The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y14.67%
EPS Next 2Y13.37%
EPS Next 3Y12.96%
EPS Next 5Y9.91%
Revenue Next Year9.98%
Revenue Next 2Y9.39%
Revenue Next 3Y9.13%
Revenue Next 5Y8.02%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ADBE Yearly Revenue VS EstimatesADBE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
ADBE Yearly EPS VS EstimatesADBE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

More info and screens

Find the best growth stocksShow best growing peers

9

4. ADBE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.32, the valuation of ADBE can be described as reasonable.
  • Based on the Price/Earnings ratio, ADBE is valued cheaply inside the industry as 87.45% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.53, ADBE is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 9.22, the valuation of ADBE can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, ADBE is valued cheaper than 87.45% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ADBE to the average of the S&P500 Index (37.95), we can say ADBE is valued rather cheaply.
Industry RankSector Rank
PE 11.32
Fwd PE 9.22
ADBE Price Earnings VS Forward Price EarningsADBE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaper than 87.45% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ADBE is valued cheaper than 90.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.72
EV/EBITDA 10.18
ADBE Per share dataADBE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • ADBE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of ADBE may justify a higher PE ratio.
  • A more expensive valuation may be justified as ADBE's earnings are expected to grow with 12.96% in the coming years.
PEG (NY)0.77
PEG (5Y)0.71
EPS Next 2Y13.37%
EPS Next 3Y12.96%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ADBE Dividend Analysis

5.1 Amount

  • ADBE does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ADBE Fundamentals: All Metrics, Ratios and Statistics

ADOBE INC

NASDAQ:ADBE (4/16/2026, 8:12:25 PM)

Premarket: 254.266 +6.11 (+2.46%)

248.155

+3.5 (+1.43%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-12
Earnings (Next)06-10
Inst Owners88.63%
Inst Owner Change-0.02%
Ins Owners0.19%
Ins Owner Change4.8%
Market Cap100.30B
Revenue(TTM)24.45B
Net Income(TTM)7.21B
Analysts72.44
Price Target331.26 (33.49%)
Short Float %3.03%
Short Ratio2.01
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.56%
Min EPS beat(2)-0.04%
Max EPS beat(2)1.17%
EPS beat(4)2
Avg EPS beat(4)0.4%
Min EPS beat(4)-0.06%
Max EPS beat(4)1.17%
EPS beat(8)6
Avg EPS beat(8)0.46%
EPS beat(12)10
Avg EPS beat(12)0.6%
EPS beat(16)12
Avg EPS beat(16)0.52%
Revenue beat(2)0
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-0.81%
Revenue beat(12)0
Avg Revenue beat(12)-0.99%
Revenue beat(16)0
Avg Revenue beat(16)-1.13%
PT rev (1m)-21.82%
PT rev (3m)-26.26%
EPS NQ rev (1m)2.7%
EPS NQ rev (3m)2.6%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 11.32
Fwd PE 9.22
P/S 4.1
P/FCF 9.72
P/OCF 9.55
P/B 8.77
P/tB N/A
EV/EBITDA 10.18
EPS(TTM)21.93
EY8.84%
EPS(NY)26.92
Fwd EY10.85%
FCF(TTM)25.52
FCFY10.29%
OCF(TTM)25.99
OCFY10.48%
SpS60.5
BVpS28.29
TBVpS-4.68
PEG (NY)0.77
PEG (5Y)0.71
Graham Number118.139 (-52.39%)
Profitability
Industry RankSector Rank
ROA 24.27%
ROE 63.05%
ROCE 48.93%
ROIC 39.6%
ROICexc 63.48%
ROICexgc N/A
OM 36.65%
PM (TTM) 29.48%
GM 89.4%
FCFM 42.19%
ROA(3y)20.26%
ROA(5y)19.2%
ROE(3y)44.54%
ROE(5y)40.01%
ROIC(3y)31.1%
ROIC(5y)28.47%
ROICexc(3y)49.26%
ROICexc(5y)43.65%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)38.43%
ROCE(5y)35.18%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y13.31%
ROICexc growth 5Y14.65%
OM growth 3Y1.88%
OM growth 5Y1.28%
PM growth 3Y3.55%
PM growth 5Y-6%
GM growth 3Y0.59%
GM growth 5Y0.6%
F-Score8
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 0.6
Debt/EBITDA 0.55
Cap/Depr 24.52%
Cap/Sales 0.78%
Interest Coverage 250
Cash Conversion 107.92%
Profit Quality 143.13%
Current Ratio 0.91
Quick Ratio 0.91
Altman-Z 7.3
F-Score8
WACC10.44%
ROIC/WACC3.79
Cap/Depr(3y)28.17%
Cap/Depr(5y)36.06%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.63%
Profit Quality(3y)135.89%
Profit Quality(5y)141.18%
High Growth Momentum
Growth
EPS 1Y (TTM)15.3%
EPS 3Y15.15%
EPS 5Y15.87%
EPS Q2Q%19.29%
EPS Next Y14.67%
EPS Next 2Y13.37%
EPS Next 3Y12.96%
EPS Next 5Y9.91%
Revenue 1Y (TTM)10.96%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%11.97%
Revenue Next Year9.98%
Revenue Next 2Y9.39%
Revenue Next 3Y9.13%
Revenue Next 5Y8.02%
EBIT growth 1Y12.05%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.91%
EBIT Next 3Y8.56%
EBIT Next 5Y9.3%
FCF growth 1Y59.04%
FCF growth 3Y10.03%
FCF growth 5Y13.17%
OCF growth 1Y54.9%
OCF growth 3Y8.57%
OCF growth 5Y11.86%

ADOBE INC / ADBE Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ADOBE INC (ADBE) stock?

ChartMill assigns a fundamental rating of 7 / 10 to ADBE.


What is the valuation status of ADOBE INC (ADBE) stock?

ChartMill assigns a valuation rating of 9 / 10 to ADOBE INC (ADBE). This can be considered as Undervalued.


How profitable is ADOBE INC (ADBE) stock?

ADOBE INC (ADBE) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for ADBE stock?

The Price/Earnings (PE) ratio for ADOBE INC (ADBE) is 11.32 and the Price/Book (PB) ratio is 8.77.


How financially healthy is ADOBE INC?

The financial health rating of ADOBE INC (ADBE) is 7 / 10.