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ADOBE INC. (ADBE) has a current P/E ratio of 13.3, compared to its historical median P/E of 46.5. The stock is currently considered Cheap based on its historical valuation range.
ADOBE INC. (ADBE) has a 5-year average return on invested capital (ROIC) of 44.3%. This indicates strong capital allocation and a potential competitive advantage.
ADOBE INC. (ADBE) has a market capitalization of $88.8B. It is classified as a large-cap stock.
ADOBE INC. (ADBE) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 10.27%.
Based on historical P/E analysis, ADOBE INC. (ADBE) appears cheap. The current P/E of 13.3 is 71% below its historical median of 46.5. The estimated fair value CAGR (P/E method) is 14.0%.
ADOBE INC. (ADBE) operates in the Services-Prepackaged Software industry, within the Technology sector.
ADOBE INC. (ADBE) reported annual revenue of $23.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Forward-Looking Statements In addition to historical information, this Annual Report on Form 10-K contains “forward-looking statements” within the meaning of applicable securities laws, including statements related to our product development plans and new or enhanced offerings; our business, strategy, artificial intelligence (“AI”) and innovation momentum; our market and AI opportunity and future growth; market and AI trends; macroeconomic conditions; fluctuations in foreign currency exchange rates; strategic investments; customer success and groups; and industry positioning. In addition, when used in this report, the words “will,” “expects,” “could,” “would,” “may,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “targets,” “estimates,” “looks for,” “looks to,” “continues” and similar expressions, as well as statements regarding our focus for the future, are generally intended to identify forward-looking statements.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 25.2B | 23.8B | 21.5B | 19.4B | 17.6B | 15.8B |
| Net Income | 7.2B | 7.1B | 5.6B | 5.4B | 4.8B | 4.8B |
| EPS | $17.66 | $16.70 | $12.36 | $11.82 | $10.10 | $10.02 |
| Free Cash Flow | 10.3B | 9.9B | 7.9B | 6.9B | 7.4B | 6.9B |
| ROIC | 57.5% | 60.4% | 44.0% | 42.7% | 37.6% | 36.9% |
| Gross Margin | 89.4% | 66.0% | 62.5% | 65.3% | 63.5% | 64.8% |
| Debt/Equity | 0.58 | 0.57 | 0.43 | 0.25 | 0.33 | 0.32 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 9.1B | 8.7B | 6.7B | 6.7B | 6.1B | 5.8B |
| Operating Margin | 36.1% | 36.6% | 31.3% | 34.3% | 34.6% | 36.8% |
| ROE | 62.8% | 55.4% | 36.3% | 35.5% | 33.0% | 34.4% |
| Shares Outstanding | 399M | 427M | 450M | 459M | 471M | 481M |
ADOBE INC. passes 8 of 9 quality checks, indicating strong fundamentals.
ADOBE INC. trades at 13.3x trailing earnings, compared to its 15-year median P/E of 46.5x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 9.3x vs a median of 33.5x. The company's 5-year average ROIC is 44.3% with a gross margin of 64.4%. Total shareholder yield (buybacks) is 10.3%. At current prices, the estimated annualized return to fair value is +18.2%.
ADOBE INC. (ADBE) has a net profit margin of 30.0%. This is a strong margin indicating high profitability.
ADOBE INC. (ADBE) generated $9.9 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ADOBE INC. (ADBE) has a debt-to-equity ratio of 0.57. This indicates moderate leverage.
ADOBE INC. (ADBE) reported earnings per share (EPS) of $16.70 in its most recent fiscal year.
ADOBE INC. (ADBE) has a return on equity (ROE) of 55.4%. This indicates the company generates strong returns for shareholders.
ADOBE INC. (ADBE) has a 5-year average gross margin of 64.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for ADOBE INC. (ADBE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ADOBE INC. (ADBE) has a book value per share of $27.22, based on its most recent annual SEC filing.