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: Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Net income 5,428 4,756 4,822 5,260 2,951 2,591
Net noncash charges 2,229 2,746 2,116 281 1,493 495
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities (355) 336 292 186 (23) 943
Net cash provided by operating activities 7,302 7,838 7,230 5,727 4,422 4,029
Purchases of property and equipment (360) (442) (348) (419) (394) (267)
Proceeds from issuance of debt — — — 3,144 — 2,248
Repayment of debt (500) — — (3,150) — —
Free cash flow to equity (FCFE) 6,442 7,396 6,882 5,302 4,027 6,011

Based on: 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), 10-K (reporting date: 2018-11-30).

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 increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to FCFE Ratio, Current

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

Microsoft Excel
No. shares of common stock outstanding 440,200,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 6,442
FCFE per share 14.63
Current share price (P) 447.17
Valuation Ratio
P/FCFE 30.56
Benchmarks
P/FCFE, Competitors1
Accenture PLC 24.28
Autodesk Inc. 51.19
Cadence Design Systems Inc. 72.11
CrowdStrike Holdings Inc. 96.05
International Business Machines Corp. 12.19
Intuit Inc. 39.64
Microsoft Corp. 43.49
Oracle Corp. 58.30
Palantir Technologies Inc. 263.24
Palo Alto Networks Inc. 59.29
Salesforce Inc. 42.78
ServiceNow Inc. 83.14
Synopsys Inc. 62.93
P/FCFE, Sector
Software & Services 43.94
P/FCFE, Industry
Information Technology 53.72

Based on: 10-K (reporting date: 2023-12-01).

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
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
No. shares of common stock outstanding1 452,000,000 457,800,000 471,700,000 478,700,000 482,130,975 487,725,915
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 6,442 7,396 6,882 5,302 4,027 6,011
FCFE per share3 14.25 16.16 14.59 11.08 8.35 12.32
Share price1, 4 596.10 344.38 499.91 458.08 350.00 244.95
Valuation Ratio
P/FCFE5 41.83 21.32 34.26 41.36 41.90 19.87
Benchmarks
P/FCFE, Competitors6
Accenture PLC 21.01 17.87 25.76 19.01 19.50 —
Autodesk Inc. 25.55 16.66 64.43 24.07 41.92 —
Cadence Design Systems Inc. 71.40 33.41 36.31 45.86 36.04 —
CrowdStrike Holdings Inc. 42.65 99.63 41.38 880.68 — —
International Business Machines Corp. 9.97 11.97 48.45 9.43 4.39 —
Intuit Inc. 38.74 13.86 86.74 17.36 34.61 —
Microsoft Corp. 43.32 36.73 42.54 42.74 30.77 —
Oracle Corp. 15.47 — 8.36 6.27 22.31 —
Palantir Technologies Inc. 74.28 96.89 198.12 — — —
Palo Alto Networks Inc. 79.75 29.54 32.91 8.11 46.21 —
Salesforce Inc. 31.06 16.56 49.52 50.40 29.09 —
ServiceNow Inc. 58.13 44.44 64.54 49.83 68.98 —
Synopsys Inc. 57.04 33.41 40.55 45.07 77.64 —
P/FCFE, Sector
Software & Services 32.95 30.55 34.03 26.43 22.16 —
P/FCFE, Industry
Information Technology 33.63 26.79 27.64 23.72 19.16 —

Based on: 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), 10-K (reporting date: 2018-11-30).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,442,000,000 ÷ 452,000,000 = 14.25

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

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 596.10 ÷ 14.25 = 41.83

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 decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.