Adobe Inc.
Adobe Inc. operates as a technology company worldwide. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content. This segment serves photographers, video editors, graphic and experience designers, game developers,…
Adobe Inc. operates as a technology company worldwide. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content. This segment serves photographers, video editors, graphic and experience designers, game developers, content creators, students, marketers, business owners, knowledge workers, and consumers. The Digital Experience segment provides an integrated platform; and products, services, and solutions that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers e-learning, technical document publishing, web conferencing, document and forms platform, web application development, printing, and Adobe Advertising solutions. It also provides consulting, training, customer management, technical support, and learning services. The company offers its solutions to enterprise customers, and businesses and consumers; and licenses its products to end-user customers through app stores and website at adobe.com. It markets and distributes its products through distributors, retailers, software developers, mobile app stores, systems integrators, independent software vendors, value-added resellers, and original equipment and hardware manufacturers. The company also provides an online visibility management and content marketing software-as-a-service platform. The company has a strategic alliance with HUMAIN for the development of generative AI models and AI-powered applications. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.Looks undervalued
5-year outlook: Not shown because confidence is low: Earnings-based DCF disagrees strongly.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price below modeled range
Showing the Fade DCF (10-year growth fade) you selected on the company card, using 9.39% growth, 3.25% terminal growth and 11.5% discount. The range varies these assumptions slightly; it is illustrative, not investment advice.
Assumptions: growth 9.39%, discount rate 11.50%, terminal growth 3.25% (sector defaults). See a worked example.
Blended growth assumption: 9.4% (sector default 8.5%, own revenue history 10.8%, analyst revenue consensus 9.1%).
Analyst consensus expects revenue growth of 9.1% a year; the growth assumption used is 9.4%.
Adjust assumptions
Show the recommended model instead
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 428.83 (+74.0%)
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EPS-based Gordon proxy
— USD 230.79 (-6.4%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 428.83 (+74.0%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 332.75 (+35.0%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 308.18 (+25.1%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 425.14 (+72.5%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 639.01 (+159.3%)
Not used: Used only when cash-flow models land far below the price; here they do not.
| Bear USD 283.91 | 13.2% |
| Base USD 425.14 | 42.0% |
| Bull USD 681.38 | 63.8% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 100 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +10.2% a year | 20 / 20 |
| Balance sheet | net debt 0.1x EBITDA | 20 / 20 |
| Margins | EBITDA margin 39% | 20 / 20 |
Peers in Information Technology
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| ADBE (this company) | USD 246.44 | 42.5% | 13.4 | 8.3 | – | 100 |
| SMCI Supermicro | USD 27.08 | 50.8% | 8.5 | 1.3 | – | 68 |
| SNDK Sandisk | USD 806.43 | 44.1% | 6.4 | 6.8 | – | 76 |
| IT Gartner | USD 198.07 | 35.7% | 13.3 | – | – | 92 |
| INTU Intuit | USD 354.84 | 31.9% | 21.1 | 5.1 | 1.4% | 100 |
| HPQ HP Inc. | USD 29.44 | 31.6% | 11.1 | – | 4.0% | 64 |
| GIB-A.TO CGI Inc. | CAD 115.51 | 26.9% | 13.9 | 2.4 | 0.6% | 90 |
| FSLR First Solar | USD 195.76 | 25.9% | 11.3 | 1.9 | – | 84 |
| CRM Salesforce | USD 222.41 | 16.6% | 18.9 | 4.8 | 0.8% | 100 |
| Peer median | 12.3 | 3.6 | ||||
Trailing 12-month financials
TTM through 31 Aug 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 13:17
| Revenue | USD 25,970,000,000 |
|---|---|
| EBITDA | USD 10,238,000,000 |
| EBIT | USD 9,472,000,000 |
| Net income | USD 7,284,000,000 |
| Free cash flow | USD 10,592,000,000 |
| Capital expenditures | USD 214,000,000 |
| Debt | USD 6,762,000,000 |
| Cash | USD 5,639,000,000 |
| Working capital | USD -2,730,000,000 |
| Shares outstanding | 395,000,000 |