Adobe Inc. (ADBE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+35.6%

$345.71

vs $255.04 price

Levered DCF

$421.48

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

7.37

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.14×	41.47×	51.55×	33.71×	61.04×	43.6×	50.99×	47.52×
P/B	11.73×	16.35×	16.95×	11.42×	19.87×	17.3×	14.29×	13.15×
P/S	5.74×	10.73×	14.42×	9.12×	18.63×	17.83×	13.47×	13.63×
EV / EBITDA	14.02×	28.79×	35.56×	23.14×	44.67×	45.49×	36.92×	38.88×
Gross margin	89.3%	89.0%	87.9%	87.7%	88.2%	86.6%	85.0%	86.8%
Operating margin	36.6%	31.3%	34.3%	34.6%	36.8%	32.9%	29.3%	31.5%
Net margin	30.0%	25.9%	28.0%	27.0%	30.5%	40.9%	26.4%	28.7%
Current ratio	1×	1.07×	1.34×	1.11×	1.25×	1.48×	0.79×	1.13×
Debt / equity	0.57×	0.43×	0.25×	0.33×	0.32×	0.35×	0.39×	0.44×
Interest coverage	33.1×	41.1×	58.85×	54.45×	51.35×	36.53×	20.82×	31.91×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	61.3%	39.4%	32.9%	33.8%	32.6%	39.7%	28.0%	27.7%
Return on invested capital	36.7%	25.4%	24.6%	24.6%	24.0%	22.5%	19.1%	18.2%
Return on assets	24.2%	18.4%	18.2%	17.5%	17.7%	21.7%	14.2%	13.8%
Free cash flow yield	7.2%	3.4%	2.5%	4.6%	2.3%	2.3%	2.7%	3.1%
Earnings yield	5.2%	2.4%	1.9%	3.0%	1.6%	2.3%	2.0%	2.1%
Enterprise value	$137.6B	$229.1B	$276.8B	$160.9B	$294.9B	$229.7B	$152B	$125.6B
Net debt / EBITDA	0.12×	-0.2×	-0.39×	0.06×	0.13×	0.05×	0.36×	0.77×
Cash conversion cycle (days)	-24	-21	-7	-21	-18	-25	5	-4