Information Technology · Application Software · US stock · price as of 16 Oct 2026
Key indicators
Price
$245.20
52-week range
$190.12 – $363.70
Market cap
$97.0B
P/E (trailing)
13.8×
EV / EBITDA
9.7×
Free-cash-flow yield
10.9%
Dividend yield
–
Revenue (last 12 months)
$26.0B
Revenue growth (3y a year)
10.5%
Operating margin
35.7%
Return on invested capital
58.3%
Net debt / EBITDA
0.1×
Fair value
Blended fair value$553.78 range $532 – $578
Versus priceUndervalued+126% to fair value
Peer multiples
$664.39
Fundamentals-adjusted multiple
$470.46
10-year DCF (market-scaled)
$526.49
Earnings power value (floor, not blended)
$172.58
Model uncertainty
Medium
X-Ray Score
77/ 100 · High confidence · ahead of 96% of sector peers
Valuation95
Growth57
Profitability85
Financial health64
Dividends–
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Adobe provides software for creating, editing and managing digital content and documents. Its products include Photoshop, Illustrator, Premiere Pro and Acrobat, along with Experience Cloud tools for marketing and analytics. Most revenue comes from subscriptions to its cloud services, which are sold to individual creators, businesses and large organizations, supplemented by smaller amounts from licenses, services and advertising technology.
Over the last twelve months Adobe Inc. reported revenue of $26.0 billion. Over three years revenue has grown by 10.5% a year. The operating margin is 35.7%. Return on invested capital is 58%. Net debt to EBITDA is 0.1 times. It does not pay a dividend. Return on invested capital describes how much profit the business earns relative to the money put into it.
StocksXray gives Adobe Inc. an X-Ray Score of 77 out of 100 (high confidence), ahead of 96% of the S&P 500 stocks in its sector. Its strongest lens is valuation (95) and its weakest is growth (57).
Our fair value blend is $553.78 (range $532.32 to $578.05). At $245.20 the stock trades 56% below that blend, so the label is "Undervalued" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Adobe Inc. (ADBE)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$616.53
$341.53
$612.47
$515.93
$320.13
$245.20
Market cap
$296.6B
$160.8B
$281.2B
$232.0B
$136.7B
$97.0B
P/E
61.5×
33.8×
51.8×
41.7×
19.2×
13.8×
EV / revenue
18.7×
9.0×
14.3×
10.7×
5.7×
3.8×
EV / EBITDA
44.7×
22.8×
36.8×
30.2×
14.3×
9.7×
Price / free cash flow
43.1×
21.7×
40.5×
29.5×
13.9×
9.2×
Free-cash-flow yield
2.3%
4.6%
2.5%
3.4%
7.2%
10.9%
Price / book
20.0×
11.4×
17.0×
16.4×
11.8×
8.2×
Dividend yield
–
–
–
–
–
–
Fundamentals checklist ● 11 Good · ● 4 Average · ● 1 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−11.7%Good
Free-cash-flow yield10.9%Good
Risk models
Altman Z score7.7×Good
Piotroski F-Score7 of 9Good
Growth
EPS growth (3y)18.2%Average
Free-cash-flow growth (3y)10.0%Average
Revenue growth (3y)10.5%Average
Growth consistency100%Good
Balance sheet
Current ratio0.8×Bad
Net debt / EBITDA0.1×Good
Interest cover35.7×Average
Valuation
Fair value vs price2.3×Good
EBIT / EV yield9.5%Good
Profitability
Return on invested capital58.3%Good
Operating margin35.7%Good
Gross profitability77.3%Good
XStocksXray
Adobe Inc. (ADBE)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
15,785
17,606
19,409
21,505
23,769
25,970
Gross profit
13,920
15,441
17,055
19,147
21,218
23,179
Operating income
5,802
6,098
6,650
6,741
8,706
9,271
Net income
4,822
4,756
5,428
5,560
7,130
7,284
Diluted EPS ($)
10.02
10.10
11.82
12.36
16.70
17.81
Free cash flow
6,882
7,396
6,942
7,873
9,852
10,592
Gross margin
88.2%
87.7%
87.9%
89.0%
89.3%
89.3%
Operating margin
36.8%
34.6%
34.3%
31.3%
36.6%
35.7%
Net margin
30.5%
27.0%
28.0%
25.9%
30.0%
28.0%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
27,241
27,165
29,779
30,230
29,496
29,981
Cash
3,844
4,236
7,141
7,613
5,431
4,359
Total debt
4,123
4,129
3,634
5,629
6,210
6,363
Equity
14,797
14,051
16,518
14,105
11,623
11,764
Dividend per share ($)
–
–
–
–
–
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.