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 Value AnalystBuy
Overall Rating8/10
Generated at:2026-03-04 16:36:56
Analysis based on 5 financial reports from periods: 2025-08-29, 2025-05-30, 2025-02-28, 2024-11-29, and 2024-08-30. Data includes quarterly financial metrics, valuation ratios, and market trading data as of March 4, 2026. Complete financial data covering revenue growth, profitability metrics, balance sheet strength, and valuation indicators.
Overview

Adobe Inc. demonstrates strong fundamental conditions with consistent revenue growth, exceptional profitability metrics, and solid financial health. The company maintains a dominant market position in creative software with premium pricing power and efficient operations. Current valuation appears attractive relative to growth prospects and sector multiples.

Valuation
8/10
Profitability
9/10
Financial health
7/10
Operation Advice
  • Buy at current price of $273.12 with target price range of $315-330 (15-20% upside).
  • Implement stop-loss at $250-255 (8-10% downside protection).
  • Consider position sizing due to historical 88% failure rate in similar trades.
  • Recommended holding period: 1-12 months for target achievement.

Valuation

P/E TTM
15.49
P/E LYR
16.79
P/B MRQ
9.50
P/S TTM
--
AI Analysis
  • 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.
  • Current price: $273.12 as of March 4, 2026
  • Forward PE: 16.79, TTM PE: 15.49
  • PB Ratio: 9.50 vs. industry average ~8-12
  • PS Ratio: 6.34 (TTM) vs. sector average ~8-10
  • PEG estimation: ~0.8-1.1 assuming 15-20% growth rate, indicating potential undervaluation
  • Appears undervalued relative to growth prospects and sector multiples
  • Fair value range estimates: Base Case $315-330 (15-20% upside), Bull Case $340-360 (25-32% upside), Bear Case $250-260 (8-10% downside)
Valuation trend

Profitability

ROE TTM
40.77%
Net margin
30.01%
Gross margin
89.18%
Total revenue
17.57B
AI Analysis
  • 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.
  • Consistently high gross margins above 89% (89.18% in Q3 2025)
  • Net margin improved to 30.01% in Q3 2025 from 24.39% in Q3 2024
  • Outstanding ROE of 40.77% (TTM) and ROA of 17.88% (TTM)
  • Reflects efficient capital allocation and strong competitive advantages
  • Significant earnings acceleration with 36.03% YoY net income growth in Q3 2025 versus -1.72% in Q3 2024
  • Demonstrates enhanced operational efficiency
  • Indicates premium pricing power and efficient cost management
Profitability
2024Q32024Q42025Q12025Q22025Q3
ROE TTM--36.31%13.32%27.41%40.77%
Earnings
2024Q32024Q42025Q12025Q22025Q3
Total revenue15.90B21.50B5.71B11.59B17.57B

Financial health

Debt/Asset
59.07%
Current ratio
1.02
Quick ratio
--
Cash ratio
1.02
AI Analysis
  • 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.
  • Sustained double-digit revenue growth across recent quarters (10.54% YoY in Q3 2025, 10.45% in Q2 2025, 10.27% in Q1 2025)
  • Current ratio of 1.02 indicates adequate short-term liquidity, though borderline
  • Debt management appears reasonable with 59.07% debt-to-equity ratio
  • Strong profitability (30.01% net margin in Q3 2025) supports robust cash flow generation
  • Moderate leverage supported by high profitability
  • Solid financial health with consistent revenue growth
Leverage
2024Q32024Q42025Q12025Q22025Q3
Debt/Asset51.24%53.34%56.28%59.27%59.07%
Liquidity
2024Q32024Q42025Q12025Q22025Q3
Current ratio1.111.071.180.991.02