Adobe Inc.(ADBE) - Stock detail

Adobe Inc.

US
ADBE
Adobe Inc.(Listing date: 08/13/1986)

Adobe Inc. was originally incorporated in California in October 1983 and reincorporated in Delaware in May 1997. The company is one of the world's largest and most diversified software companies. It offers a range of products and services for creative professionals, marketers, knowledge workers, students, application developers, enterprises, and consumers to create, manage, deliver, measure, optimize, engage with, and process compelling content and experiences on personal computers, devices, and media.

AI Rating

Rating methodology
Latest close (chg%)273.12+0.79%
Buy price
273.12
Target price315.00
Sell price255.00
P/E TTM15.49
P/E16.79
Confidence70%
Risk score65/100
AI Summary
Adobe's forward P/E of 16.79 represents significant discount to historical 25-30x range and sector average 18-22x, creating opportunity for multiple expansion. Technical momentum shows high-volume breakout and bullish MACD crossover. AI integration through Firefly enhances moat rather than disrupts it, validated by WPP partnership. Position size reduced to 1.5-2.0% to manage risk.

Alpha Score

0-10
  • Trend（Score 6/10）

    ADBE shows cautiously optimistic short-term outlook with bullish momentum indicators but faces resistance near $277-279

  • Valuation（Score 8/10）

    Adobe appears undervalued relative to its growth prospects and sector multiples, with forward PE of 16.79 and TTM PE of 15.49 trading below industry averages. PEG ratio estimated at 0.8-1.1 suggests potential undervaluation with fair value range of $315-360 representing 15-32% upside potential.

  • Financial strength（Score 7/10）
    Adobe demonstrates solid financial health with sustained double-digit revenue growth, adequate short-term liquidity (current ratio 1.02), reasonable debt management (59.07% debt-to-equity ratio), and robust cash flow generation supported by strong profitability.
  • Profitability（Score 9/10）
    Adobe exhibits exceptional profitability with consistently high gross margins above 89%, improving net margins to 30.01%, and outstanding return metrics including ROE of 40.77% and ROA of 17.88%. Significant earnings acceleration with 36.03% YoY net income growth demonstrates enhanced operational efficiency.
  • Sentiment（Score 6/10）
    Adobe faces mixed sentiment with AI disruption concerns balanced by strategic partnerships and contrarian investor confidence, recommending cautious optimism with accumulation on dips.
Latest price
$273.12+0.79%
Market cap111.5B
P/E TTM15.49
P/E16.79
Volume4.31M
Turnover1.17B