ADOBE INC (ADBE) Fundamental Analysis & Valuation

NASDAQ:ADBE • US00724F1012

Current stock price

255.331 USD
+8.15 (+3.3%)
Last:

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.
  • ADBE had a positive operating cash flow in each of the past 5 years.
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

  • ADBE has a better Return On Assets (24.27%) than 97.43% of its industry peers.
  • The Return On Equity of ADBE (63.05%) is better than 97.06% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 39.60%, ADBE belongs to the top of the industry, outperforming 98.16% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital 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

  • ADBE has a better Profit Margin (29.48%) than 92.28% of its industry peers.
  • In the last couple of years the Profit Margin of ADBE has declined.
  • ADBE's Operating Margin of 36.65% is amongst the best of the industry. ADBE outperforms 96.32% of its industry peers.
  • In the last couple of years the Operating Margin of ADBE has remained more or less at the same level.
  • The Gross Margin of ADBE (89.40%) is better than 96.69% 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. ADBE Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ADBE is creating value.
  • Compared to 1 year ago, ADBE has less shares outstanding
  • ADBE has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ADBE has a worse debt to assets ratio.
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

  • An Altman-Z score of 7.28 indicates that ADBE is not in any danger for bankruptcy at the moment.
  • ADBE's Altman-Z score of 7.28 is amongst the best of the industry. ADBE outperforms 82.72% 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.
  • Looking at the Debt to FCF ratio, with a value of 0.60, ADBE is in the better half of the industry, outperforming 77.94% of the companies in the same industry.
  • 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 63.97% of its industry peers.
  • Although ADBE's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 0.6
Altman-Z 7.28
ROIC/WACC3.76
WACC10.52%
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

  • ADBE has a Current 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.
  • ADBE has a worse Current ratio (0.91) than 80.51% of its industry peers.
  • A Quick Ratio of 0.91 indicates that ADBE may have some problems paying its short term obligations.
  • The Quick ratio of ADBE (0.91) is worse than 79.04% of its industry peers.
  • The current and quick ratio evaluation for ADBE is rather negative, while it does have 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

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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.
  • The Revenue has grown by 10.96% in the past year. This is quite good.
  • The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 9.91% on average over the next years. This is quite good.
  • 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 Year9.92%
Revenue Next 2Y9.34%
Revenue Next 3Y9.01%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

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9

4. ADBE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.64 indicates a reasonable valuation of ADBE.
  • Based on the Price/Earnings ratio, ADBE is valued cheaper than 87.50% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of ADBE to the average of the S&P500 Index (27.66), we can say ADBE is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 9.48, the valuation of ADBE can be described as reasonable.
  • ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADBE is cheaper than 88.24% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ADBE to the average of the S&P500 Index (38.00), we can say ADBE is valued rather cheaply.
Industry RankSector Rank
PE 11.64
Fwd PE 9.48
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADBE indicates a rather cheap valuation: ADBE is cheaper than 88.60% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ADBE is valued cheaply inside the industry as 90.07% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10
EV/EBITDA 10.14
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.
  • ADBE's earnings are expected to grow with 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)0.73
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

  • No dividends for ADBE!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ADBE Fundamentals: All Metrics, Ratios and Statistics

ADOBE INC

NASDAQ:ADBE (4/22/2026, 3:54:08 PM)

255.331

+8.15 (+3.3%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-12
Earnings (Next)06-10
Inst Owners88.63%
Inst Owner Change-0.12%
Ins Owners0.19%
Ins Owner Change6.27%
Market Cap103.20B
Revenue(TTM)24.45B
Net Income(TTM)7.21B
Analysts72.44
Price Target331.26 (29.74%)
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)-24.13%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.03%
Valuation
Industry RankSector Rank
PE 11.64
Fwd PE 9.48
P/S 4.22
P/FCF 10
P/OCF 9.82
P/B 9.03
P/tB N/A
EV/EBITDA 10.14
EPS(TTM)21.93
EY8.59%
EPS(NY)26.92
Fwd EY10.54%
FCF(TTM)25.52
FCFY10%
OCF(TTM)25.99
OCFY10.18%
SpS60.5
BVpS28.29
TBVpS-4.68
PEG (NY)0.79
PEG (5Y)0.73
Graham Number118.139 (-53.73%)
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 7.28
F-Score8
WACC10.52%
ROIC/WACC3.76
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 Year9.92%
Revenue Next 2Y9.34%
Revenue Next 3Y9.01%
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 11.64 and the Price/Book (PB) ratio is 9.03.


How financially healthy is ADOBE INC?

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