NASDAQ · ADBE

Adobe Inc.

Technology · Software - Application

$252.67▲ 0.87% ($2.17)at close

Pre-market$251.04▼ 0.64%7:33 AM ET

52-week

$190.12$370.31

Market cap

What the market price implies · Reverse DCF

To support a price of $252.67, this model requires revenue to grow by 5.94%/yr over the next 10 years, compounded annually.

Historical revenue grew by 10.77%/yr over the past 4 years. The required annual growth rate is 4.84 percentage points lower.

Selected forecast · Base scenario

7.28%/yr · actual 10-year annualized revenue growth

Year 1 growth: 11.4%

Market-implied · Base operating assumptions + edited margins

5.94%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$252.67

Estimated value / share

$284.80

Base scenario

This estimate is 12.72% above the price used.

USD · TTM ending 2026-08-28

Year 1 growth 11.4% · Ending margin 30% · Discount rate 12.19%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 17, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-08-28
Data refreshed: Sep 18, 2026, 11:34 AM UTC · provider

Why this method?

Historical FCFF compounded too quickly to treat that cash-flow CAGR as a sustainable forward anchor, so a revenue-and-margin transition model is more honest than extrapolating current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 30 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 26.4%.

Do you have 5+ years of positive FCFF history? 30 consecutive positive FCFF years are available.

Is the business model structurally similar to what it should be in 10 years? 10.0-year FCFF CAGR of 22.9% exceeds the 20.0% sustainability threshold — compounding current cash flows at that historical rate would produce an unreliable forward projection.

Price vs Fundamentals

Why The Stock Is Moving

Likely multiple compressionModerate confidence

1Y Price: -30.83%Revenue (TTM): 12.03%FCF (TTM): 13.96%P/FCF: 0th pct

What changed

The stock fell 30.83% over the last year. Revenue grew 12.03% over the trailing twelve months. Operating margin moved from 36.25% to 35.7%. Free cash flow grew 13.96% over the trailing twelve months.

What the market seems to be pricing

Visible fundamentals weakened far less than the stock price, and the shares now sit around the 0th percentile of their historical P/FCF range. That looks more like a rerating of the multiple than a collapse in the business.

What would invalidate this read

This read changes if operating margin (currently 35.7%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.

Performance

Return analysis

Company profile

Adobe Inc. stands as a prominent global software provider, delivering a diverse range of solutions.

CEOShantanu Narayen

SectorTechnology

IndustrySoftware - Application

Employees31,360

IPO dateAug 13, 1986

https://www.adobe.com

Market multiples

Forward P/E—

EV/EBITDA14.11

Enterprise value$137.59B

Stock splits

May 24, 2005↑ Forward

Every 1 shares became 2

+100%

Oct 25, 2000↑ Forward

Every 1 shares became 2

+100%

Oct 27, 1999↑ Forward

Every 1 shares became 2

+100%

Aug 11, 1993↑ Forward

Every 1 shares became 2

+100%

Nov 23, 1988↑ Forward

Every 1 shares became 2

+100%

Mar 12, 1987↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth12.89%

Gross margin (FY2025)88.61%▼0.4ppvs FY2024

Operating margin (FY2025)36.63%▲5.3ppvs FY2024

ROE61.9%▲6.5ppvs FY2025

Analyst consensus

RatingBuy

Target price$269.84▲6.80%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Dec 9, 2026

Q4 FY26 · EPS est $6.32 · Revenue est $6.83B

View

NASDAQ · ADBE

Adobe Inc.

Technology · Software - Application

$252.67▲ 0.87% ($2.17)at close

Pre-market$251.04▼ 0.64%7:33 AM ET

52-week

$190.12$370.31

Market cap

What the market price implies · Reverse DCF

To support a price of $252.67, this model requires revenue to grow by 5.94%/yr over the next 10 years, compounded annually.

Historical revenue grew by 10.77%/yr over the past 4 years. The required annual growth rate is 4.84 percentage points lower.

Selected forecast · Base scenario

7.28%/yr · actual 10-year annualized revenue growth

Year 1 growth: 11.4%

Market-implied · Base operating assumptions + edited margins

5.94%/yr · flat 10-year annualized revenue growth

Valuation

Recommended · Revenue & margin DCF

Price used

$252.67

Estimated value / share

$284.80

Base scenario

This estimate is 12.72% above the price used.

USD · TTM ending 2026-08-28

Year 1 growth 11.4% · Ending margin 30% · Discount rate 12.19%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 17, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-08-28
Data refreshed: Sep 18, 2026, 11:34 AM UTC · provider

Why this method?

Historical FCFF compounded too quickly to treat that cash-flow CAGR as a sustainable forward anchor, so a revenue-and-margin transition model is more honest than extrapolating current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 30 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 26.4%.

Do you have 5+ years of positive FCFF history? 30 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Likely multiple compressionModerate confidence

1Y Price: -30.83%Revenue (TTM): 12.03%FCF (TTM): 13.96%P/FCF: 0th pct

What changed

The stock fell 30.83% over the last year. Revenue grew 12.03% over the trailing twelve months. Operating margin moved from 36.25% to 35.7%. Free cash flow grew 13.96% over the trailing twelve months.

What the market seems to be pricing

What would invalidate this read

This read changes if operating margin (currently 35.7%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.

Performance

Return analysis

Company profile

Adobe Inc. stands as a prominent global software provider, delivering a diverse range of solutions.

CEOShantanu Narayen

SectorTechnology

IndustrySoftware - Application

Employees31,360

IPO dateAug 13, 1986

https://www.adobe.com

Market multiples

Forward P/E—

EV/EBITDA14.11

Enterprise value$137.59B

Stock splits

May 24, 2005↑ Forward

Every 1 shares became 2

+100%

Oct 25, 2000↑ Forward

Every 1 shares became 2

+100%

Oct 27, 1999↑ Forward

Every 1 shares became 2

+100%

Aug 11, 1993↑ Forward

Every 1 shares became 2

+100%

Nov 23, 1988↑ Forward

Every 1 shares became 2

+100%

Mar 12, 1987↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth12.89%

Gross margin (FY2025)88.61%▼0.4ppvs FY2024

Operating margin (FY2025)36.63%▲5.3ppvs FY2024

ROE61.9%▲6.5ppvs FY2025

Analyst consensus

RatingBuy

Target price$269.84▲6.80%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Dec 9, 2026

Q4 FY26 · EPS est $6.32 · Revenue est $6.83B

View