Adobe Systems Valuation
| ADBE Stock | USD 517.78 2.30 0.45% |
At this time, the firm appears to be undervalued. Adobe Systems shows a prevailing Real Value of $550.49 per share. The current price of the firm is $517.78. Our model approximates the value of Adobe Systems from analyzing the firm fundamentals such as Return On Equity of 0.35, profit margin of 0.26 %, and Current Valuation of 225.48 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Adobe Systems' valuation include:
Price Book 15.6008 | Enterprise Value 225.5 B | Enterprise Value Ebitda 29.0713 | Price Sales 10.8328 | Forward PE 25 |
Undervalued
Today
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.
The fair value of the Adobe stock is determined by what a typical buyer is willing to pay for full or partial control of Adobe Systems Incorporated. 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. | Historical | Market 517.78 | Real 550.49 | Target 569.7 | Hype 514.97 | Naive 521.84 |
The real value of Adobe Stock, also known as its intrinsic value, is the underlying worth of Adobe Systems Company, which is reflected in its stock price. It is based on Adobe Systems' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Adobe Systems' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Adobe Systems Incorporated 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: 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. If more than one evaluation category is relevant for Adobe Systems we suggest using both methods to arrive at a better estimate.
Adobe Systems Cash |
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Adobe Valuation Trend
Comparing Adobe Systems' enterprise value against its market capitalization is a good way to estimate the value of Adobe Systems Incorporated uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Adobe Revenue by Product
Adobe Systems Total Value Analysis
Adobe Systems Incorporated is presently forecasted to have valuation of 225.48 B with market capitalization of 226.91 B, debt of 4.08 B, and cash on hands of 5.76 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Adobe Systems fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
225.48 B | 226.91 B | 4.08 B | 5.76 B |
Adobe Systems Investor Information
About 87.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.67. Adobe Systems recorded earning per share (EPS) of 11.8. The entity last dividend was issued on the 24th of March 2005. The firm had 2:1 split on the 24th of May 2005. Based on the key indicators related to Adobe Systems' liquidity, profitability, solvency, and operating efficiency, Adobe Systems Incorporated may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.31 | 0.3145 |
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| Total Cash From Operating Activities | 8.8 B | 8.4 B |
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| Operating Income | 8 B | 7.6 B |
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Adobe Systems Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Adobe Systems has an asset utilization ratio of 65.18 percent. This indicates that the Company is making $0.65 for each dollar of assets. An increasing asset utilization means that Adobe Systems Incorporated is more efficient with each dollar of assets it utilizes for everyday operations.Adobe Systems Ownership Allocation
Adobe Systems holds a total of 440.2 Million outstanding shares. The majority of Adobe Systems Incorporated outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Adobe Systems to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Adobe Systems. Please pay attention to any change in the institutional holdings of Adobe Systems Incorporated as this could imply that something significant has changed or is about to change at the company. Please note that on September 23, 2024, Representative Greg Landsman of US Congress acquired $15k to $50k worth of Adobe Systems's common stock.Adobe Systems Profitability Analysis
The company reported the previous year's revenue of 19.41 B. Net Income was 5.43 B with profit before overhead, payroll, taxes, and interest of 15.44 B.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 stock valuation mechanism determines Adobe Systems' current worth on a weekly basis. Our valuation model uses a comparative analysis of Adobe Systems. We calculate exposure to Adobe Systems's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Adobe Systems's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 19.6 B | 20.6 B | |
| Pretax Profit Margin | 0.31 | 0.32 | |
| Operating Profit Margin | 0.31 | 0.31 | |
| Net Profit Margin | 0.29 | 0.17 | |
| Gross Profit Margin | 0.87 | 0.70 |
Adobe Systems Quarterly Retained Earnings |
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Adobe Systems Growth Indicators
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.
| Common Stock Shares Outstanding | 459 M | |
| Quarterly Earnings Growth Y O Y | 0.233 | |
| Forward Price Earnings | 25 |
Adobe Systems Current Valuation Indicators
Valuation refers to the process of determining the present value of Adobe Systems Incorporated 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.Complementary Tools for Adobe Stock analysis
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 the 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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