ADBE
Adobe Inc.
$194.90
▼ 0.1%Updated Today 6:01 PM ET
▼ Down 48.4% over the last 12 months
Market Cap
$77.58B
P/E
10.86x
Forward P/E (est.)
9.71x
ROE
62.4%
Revenue Growth
11.5%
EPS Growth
11.8%
Profit Margin
28.7%
FCF Yield
6.3%
Debt / Equity
0.53x
ROIC
42.0%
Interest Coverage
77.04x
Current Ratio
0.75x
Dividend Yield
—
Implied Growth (rev. DCF)
-3.3%
Rating Score
78/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ADBE's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ADBE trades near $194.90, below its 50-day average ($241.66) and 200-day average ($295.30). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 19 it is oversold — selling has been heavy and a bounce is possible.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ADBE's is $11.44 (~5.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ADBE found buyers near $190.12 (support) and sellers near $275.44 (resistance); its 52-week range is $190.12–$392.58. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 2.0× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Adobe Inc. (ADBE) is a large-cap company in the Application Software industry, part of the Information Technology sector of the S&P 500, with a market value around $77.58B.
In its latest reported year it generated about $23.77B in revenue and $7.13B in net profit.
Our model rates ADBE Strong (78/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
10.8%
Revenue moved from $15.79B in 2021 to $23.77B in 2025, a 10.8% compound annual growth rate. The most recent year grew a steady 11.5% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
89.3%
Operating Margin
36.6%
Net Margin
30.0%
ROE
62.4%
Adobe Inc. keeps about 28.7% of each sales dollar as net profit, with a 89.3% gross margin and 36.6% operating margin. Return on equity is 62.4% and return on invested capital about 42.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$4.80B
Net Debt
-$117.00M
Net cash position
Net Debt / EBITDA
-0.01x
Debt / Equity
0.53x
Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 77.0x, with a current ratio of 0.8x. That is a moderate, manageable debt load for most businesses. It carries roughly $4.80B of total debt against $4.92B of cash.
Operating CF
$10.03B
Free Cash Flow
$9.85B
FCF Margin
41.4%
In the latest year Adobe Inc. produced about $10.03B of operating cash flow and $9.85B of free cash flow after capital spending. That is a free-cash-flow yield of about 6.3% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
10.86x
P/S
3.51x
P/B
10.85x
EV / EBITDA
8.79x
ADBE trades at 10.9x trailing earnings (about 9.7x on estimated forward earnings), 3.5x sales, and 10.9x book value. Reverse-engineering today's price implies the market expects roughly -3.3% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How ADBE stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (72 S&P 500 companies), ADBE ranks #9 of 72 by our overall rating. It trades at a discount versus the sector on earnings (10.9x P/E vs. 35.6x median) with a higher return on equity (62.4% vs. 25.6%) and slower revenue growth (11.5% vs. 17.4%).
P/E vs sector
10.9x
median 35.6x
ROE vs sector
62.4%
median 25.6%
Growth vs sector
11.5%
median 17.4%
Sector rank
#9
of 72 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$211.60 – $332.51
vs. $194.90 today · expected CAGR 2% – 11%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $26.38B | $29.29B | $32.51B | $36.08B | $40.05B |
| Net income | $7.92B | $8.79B | $9.75B | $10.82B | $12.02B |
| EPS | $19.91 | $22.10 | $24.53 | $27.23 | $30.23 |
| Share price (low) | $139.39 | $154.72 | $171.74 | $190.63 | $211.60 |
| Share price (high) | $219.03 | $243.13 | $269.87 | $299.56 | $332.51 |
| CAGR (low–high) | -28% / 12% | -11% / 12% | -4% / 11% | -1% / 11% | 2% / 11% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ADBE:
- Revenue is growing 11.5% a year, a sign of real demand.
- High net margins (28.7%) point to pricing power or efficiency.
- Strong return on equity (62.4%) shows capital is put to work well.
- Healthy free-cash-flow yield (~6.3%) funds buybacks and dividends.
- Our model's overall read is Strong (78/100).
The case against ADBE:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Adobe Inc. is a large-cap information technology business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 10.9x earnings, which our model scores Strong (78/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.