Adobe Stock Valuation

ADBE
 Stock
  

USD 376.49  8.01  2.17%   

What is the value of Adobe Systems today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Adobe Systems, is its stock price multiplied by the total number of shares outstanding, calculating Adobe Systems' enterprise value requires a different approach. It uses Adobe Systems' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Tangible Asset Value is expected to grow to about 7.5 B, whereas Free Cash Flow is forecasted to decline to about 3.6 B.
Adobe Systems shows a prevailing Real Value of $430.53 per share. The current price of the firm is $376.49. At this time, the firm appears to be undervalued. Our model approximates the value of Adobe Systems from analyzing the firm fundamentals such as Current Valuation of 187.05 B, profit margin of 29.90 %, and Return On Equity of 35.33 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Adobe Systems Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Adobe Systems's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 376.49
Please note that Adobe Systems' price fluctuation is very steady at this time. Calculation of the real value of Adobe Systems is based on 3 months time horizon. Increasing Adobe Systems' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Adobe Systems is useful when determining the fair value of the Adobe stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Adobe Systems. Since Adobe Systems is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Adobe Stock. However, Adobe Systems' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
330.19
Downside
430.53
Real Value
433.25
Upside
Estimating the potential upside or downside of Adobe Systems helps investors to forecast how Adobe stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Adobe Systems more accurately as focusing exclusively on Adobe Systems' fundamentals will not take into account other important factors:
Earnings
Estimates (9)
LowProjected EPSHigh
10.8411.0911.68
Details
Hype
Prediction
LowEstimated ValueHigh
365.43368.15370.87
Details
Naive
Forecast
LowNext ValueHigh
383.16385.88388.60
Details
20 Analysts
Consensus
LowTarget PriceHigh
575.00658.18820.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Adobe Systems' intrinsic value based on its ongoing forecasts of Adobe Systems' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Adobe Systems' closest peers. When choosing an evaluation method for Adobe Systems, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Adobe Systems Investments

1.86 Billion

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Adobe Valuation Drivers Correlation

Many accounts on the financial statements of Adobe Systems are highly interrelated and sometimes correlated. Consequently, when conducting Adobe's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Adobe
Click cells to compare fundamentals

Adobe Valuation Trend

Knowing Adobe Systems' actual value is paramount for traders to make sound investment determinations. Adobe Systems' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Adobe Systems' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Adobe Systems' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Adobe Market Cap

Adobe Systems is number one stock in market capitalization category among related companies. Market capitalization of Software—Infrastructure industry is presently estimated at about 1.68 Trillion. Adobe Systems retains roughly 175.32 Billion in market capitalization claiming about 10% of equities listed under Software—Infrastructure industry.
Capitalization  Workforce  Revenue  Total debt  Valuation

Adobe Systems Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Adobe Systems's current stock value. Our valuation model uses many indicators to compare Adobe Systems value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Adobe Systems competition to find correlations between indicators driving Adobe Systems's intrinsic value. More Info.
Adobe Systems is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about  0.32  of Price to Book per Price to Earning. The ratio of Price to Earning to Price to Book for Adobe Systems is roughly  3.10 . As of July 5, 2022, Price to Book Value is expected to decline to 12.28. Comparative valuation analysis is a catch-all model that can be used if you cannot value Adobe Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Adobe Systems' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Adobe Systems' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Adobe Systems' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Adobe Systems and how it compares across the competition.

About Adobe Systems Valuation

The equity valuation mechanism determines the current worth of Adobe Systems on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Adobe Systems. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Adobe Systems based exclusively on its fundamental and basic technical indicators. By analyzing Adobe Systems's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Adobe Systems's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Adobe Systems. We calculate exposure to Adobe Systems's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Adobe Systems's related companies.
Last ReportedProjected for 2022
Gross Profit7.8 B7.9 B
Profit Margin 0.29  0.27 
Adobe Inc. operates as a diversified software company worldwide. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California. Adobe Systems operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 25988 people.

Adobe Systems Quarterly Enterprise Value

204.99 Billion

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Adobe Systems Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Adobe Systems does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.89
Earnings Quarterly Growth0.40%
Revenue Growth9.10%
Enterprise Value To Ebitda28.68
Earnings Growth1.90%
Enterprise Value To Revenue11.59

Adobe Systems Current Valuation Indicators

Valuation refers to the process of determining the present value of Adobe Systems and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Adobe we look at many different elements of the entity such as Adobe's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Adobe Systems' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Adobe Systems' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Adobe Systems, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Adobe Systems' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Adobe Systems' worth.
Please continue to Trending Equities. Note that the Adobe Systems information on this page should be used as a complementary analysis to other Adobe Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bond Directory module to find actively traded corporate debentures issued by US companies.

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When running Adobe Systems price analysis, check to measure Adobe Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Adobe Systems is operating at the current time. Most of Adobe Systems' value examination focuses on studying past and present price action to predict the probability of Adobe Systems' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Adobe Systems' price. Additionally, you may evaluate how the addition of Adobe Systems to your portfolios can decrease your overall portfolio volatility.
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Is Adobe Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Adobe Systems. If investors know Adobe will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Adobe Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Adobe Systems is measured differently than its book value, which is the value of Adobe that is recorded on the company's balance sheet. Investors also form their own opinion of Adobe Systems' value that differs from its market value or its book value, called intrinsic value, which is Adobe Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Adobe Systems' market value can be influenced by many factors that don't directly affect Adobe Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Adobe Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine Adobe Systems value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Adobe Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.