ADOBE INC.
$243.08
+4.54 (+1.90%) · delayed · Nov 13, 2026
Five-year price
52w $190.12 to $362.71
- Market cap
- $94.6B
- Enterprise value
- $95.4B
- P/E
- 14.6×
- 17.8× on 3y avg EPS
- EV / EBIT
- 11.0×
- FCF yield
- 10.4%
- ROIC
- 57.3%
- Debt / equity
- 0.53
- Piotroski F
- 7/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 42.0%
- ●ROE > 15% (5y avg)5y avg ROE 40.0%
- ●Stable operating marginsMargin volatility 2.0% (σ, 5y)
- ●Earnings convert to cashFCF / net income 141% (5y avg)
- ●Growing revenueRevenue CAGR 5y 13.1%
- ●Shrinking share countDiluted shares -12.0% over 5y
Value
60
- ●P/E below 15P/E 14.6
- ●EV/EBIT below 12EV/EBIT 11.0
- ●FCF yield above 6%FCF yield 10.4%
- ○Price below Graham NumberGraham Number $105.93
- ○P/B below 3P/B 8.1
Safety
60
- ○Debt / equity below 0.5D/E 0.53
- ●Debt payable in < 4 yrs of earningsNet debt $0.8B
- ●Interest coverage > 8xCoverage 33.1x
- ○Current ratio > 1.5Current ratio 1.00
- ●Piotroski F-score ≥ 6F-score 7/9
Graham Defensive
43
- ●Adequate size (revenue > $2B)Revenue $23.8B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.00
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 275%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 17.8
- ○P/E × P/B ≤ 22.5Product 145.2
Valuation lab
What do you have to believe?
At $243.08, the market is pricing in about −4.1% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $779M · 389M shares · 5y revenue CAGR 13.1%
Intrinsic value
$880.66
Price
$243.08
Margin of safety
72%
What the price implies
The market is paying for −4.1% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
65% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 5,854 | 7,302 | 9,030 | 11,171 | 12,868 | 15,785 | 17,606 | 19,409 | 21,505 | 23,769 |
| Gross profit | 5,035 | 6,291 | 7,835 | 9,498 | 11,146 | 13,920 | 15,441 | 17,055 | 19,147 | 21,218 |
| Operating income | 1,494 | 2,168 | 2,840 | 3,268 | 4,237 | 5,802 | 6,098 | 6,650 | 6,741 | 8,706 |
| Operating margin | 25.5% | 29.7% | 31.5% | 29.3% | 32.9% | 36.8% | 34.6% | 34.3% | 31.3% | 36.6% |
| Pre-tax income | 1,435 | 2,138 | 2,794 | 3,205 | 4,176 | 5,705 | 6,008 | 6,799 | 6,931 | 8,734 |
| Income tax | 266 | 444 | 203 | 254 | (1,084) | 883 | 1,252 | 1,371 | 1,371 | 1,604 |
| Net income | 1,169 | 1,694 | 2,591 | 2,951 | 5,260 | 4,822 | 4,756 | 5,428 | 5,560 | 7,130 |
| EPS (diluted) | 2.32 | 3.38 | 5.20 | 6.00 | 10.83 | 10.02 | 10.10 | 11.82 | 12.36 | 16.70 |
| Diluted shares | 504 | 501 | 498 | 492 | 486 | 481 | 471 | 459 | 450 | 427 |
Who owns it