Stock Analysis on Net
Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Adobe Inc., FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
Net income 5,560 5,428 4,756 4,822 5,260 2,951
Net noncash charges 2,352 2,229 2,746 2,116 281 1,493
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities 144 (355) 336 292 186 (23)
Net cash provided by operating activities 8,056 7,302 7,838 7,230 5,727 4,422
Purchases of property and equipment (183) (360) (442) (348) (419) (394)
Proceeds from issuance of debt 1,997 — — — 3,144 —
Repayment of debt — (500) — — (3,150) —
Free cash flow to equity (FCFE) 9,870 6,442 7,396 6,882 5,302 4,027

Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Adobe Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Adobe Inc. FCFE decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Price to FCFE Ratio, Current

Adobe Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 435,300,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 9,870
FCFE per share 22.67
Current share price (P) 429.99
Valuation Ratio
P/FCFE 18.96
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.37
Cadence Design Systems Inc. 73.09
CrowdStrike Holdings Inc. 94.64
International Business Machines Corp. 12.27
Intuit Inc. 37.22
Microsoft Corp. 42.73
Oracle Corp. 55.33
Palantir Technologies Inc. 234.54
Palo Alto Networks Inc. 56.22
Salesforce Inc. 40.41
ServiceNow Inc. 81.63
Synopsys Inc. 67.34
P/FCFE, Sector
Software & Services 42.83
P/FCFE, Industry
Information Technology 52.48

Based on: 10-K (reporting date: 2024-11-29).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Adobe Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
No. shares of common stock outstanding1 435,300,000 452,000,000 457,800,000 471,700,000 478,700,000 482,130,975
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 9,870 6,442 7,396 6,882 5,302 4,027
FCFE per share3 22.67 14.25 16.16 14.59 11.08 8.35
Share price1, 4 408.50 596.10 344.38 499.91 458.08 350.00
Valuation Ratio
P/FCFE5 18.02 41.83 21.32 34.26 41.36 41.90
Benchmarks
P/FCFE, Competitors6
Accenture PLC 23.91 21.01 17.87 25.76 19.01 19.50
Cadence Design Systems Inc. — 71.40 33.41 36.31 45.86 36.04
CrowdStrike Holdings Inc. 85.82 42.65 99.63 41.38 880.68 —
International Business Machines Corp. — 9.97 11.97 48.45 9.43 4.39
Intuit Inc. 38.43 38.74 13.86 86.74 17.36 34.61
Microsoft Corp. 42.11 43.32 36.73 42.54 42.74 30.77
Oracle Corp. 48.38 15.47 — 8.36 6.27 22.31
Palantir Technologies Inc. — 74.28 96.89 198.12 — —
Palo Alto Networks Inc. 52.90 79.75 29.54 32.91 8.11 46.21
Salesforce Inc. 38.33 31.06 16.56 49.52 50.40 29.09
ServiceNow Inc. — 58.13 44.44 64.54 49.83 68.98
Synopsys Inc. 63.08 57.04 33.41 40.55 45.07 77.64
P/FCFE, Sector
Software & Services — 33.05 30.87 33.78 26.47 21.99
P/FCFE, Industry
Information Technology — 33.30 26.87 27.27 23.30 18.62

Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 9,870,000,000 ÷ 435,300,000 = 22.67

4 Closing price as at the filing date of Adobe Inc. Annual Report.

5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 408.50 ÷ 22.67 = 18.02

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Adobe Inc. P/FCFE ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.