Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Adobe Inc., current price multiples

Microsoft Excel
Adobe Inc. Accenture PLC Autodesk Inc. Cadence Design Systems Inc. CrowdStrike Holdings Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. Oracle Corp. Palantir Technologies Inc. Palo Alto Networks Inc. Salesforce Inc. ServiceNow Inc. Synopsys Inc. Software & Services Information Technology
Selected Financial Data
Current share price (P) $447.17
No. shares of common stock outstanding 440,200,000
Growth rate (g) 30.50%
 
Earnings per share (EPS) $12.33
Next year expected EPS $16.09
Operating profit per share $15.11
Sales per share $44.09
Book value per share (BVPS) $37.52
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 36.26 31.56 70.75 79.41 998.98 27.53 60.81 36.83 45.34 874.51 47.55 79.51 129.87 33.61 52.56 57.44
Price to next year expected earnings 27.79 26.79 45.63 62.38 1,167.18 31.23 54.22 28.93 15.40 1,188.59 55.59 76.46 113.54 29.20 43.28 45.74
Price-earnings-growth (PEG) 1.19 1.77 1.28 2.91 5.00 1.35 0.23 19.90 9.03 2.22 2.45 2.25
Price to operating profit (P/OP) 29.60 23.89 56.82 66.08 22.01 49.63 29.66 30.91 1,529.55 179.21 65.63 295.01 56.12 42.19 48.33
Price to sales (P/S) 10.14 3.53 11.66 20.22 29.20 3.34 11.06 13.24 8.96 82.47 15.27 9.43 25.06 12.42 11.69 12.65
Price to book value (P/BV) 11.92 8.10 34.55 24.29 38.73 9.17 9.77 12.09 54.52 52.80 23.71 5.51 29.47 8.46 15.31 18.18

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Adobe Inc., historical price multiples

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Price to earnings (P/E) 49.64 33.15 48.90 41.69 57.17 46.11
Price to operating profit (P/OP) 40.52 25.85 40.64 51.75 51.63 42.06
Price to sales (P/S) 13.88 8.95 14.94 17.04 15.11 13.23
Price to book value (P/BV) 16.31 11.22 15.94 16.53 16.03 12.76

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Adobe Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Adobe Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Adobe Inc. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Adobe Inc. P/BV ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Earnings (P/E)

Adobe Inc., historical P/E 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$)
Net income (in millions) 5,428 4,756 4,822 5,260 2,951 2,591
Earnings per share (EPS)2 12.01 10.39 10.22 10.99 6.12 5.31
Share price1, 3 596.10 344.38 499.91 458.08 350.00 244.95
Valuation Ratio
P/E ratio4 49.64 33.15 48.90 41.69 57.17 46.11
Benchmarks
P/E Ratio, Competitors5
Accenture PLC 27.81 22.93 36.58 28.32 24.58
Autodesk Inc. 51.99 82.51 47.53 152.72
Cadence Design Systems Inc. 78.64 59.70 53.88 62.89 20.22
CrowdStrike Holdings Inc.
International Business Machines Corp. 22.50 71.56 19.40 19.30 13.35
Intuit Inc. 64.61 57.31 75.17 49.52 48.17
Microsoft Corp. 33.96 28.34 35.14 35.04 26.86
Oracle Corp. 38.96 26.85 15.84 16.69 16.89
Palantir Technologies Inc. 246.77
Palo Alto Networks Inc. 170.35
Salesforce Inc. 879.57 135.68 48.20 1,204.70 107.70
ServiceNow Inc. 90.80 284.28 487.70 978.47 106.89
Synopsys Inc. 70.08 51.76 73.37 55.92 39.55
P/E Ratio, Sector
Software & Services 39.41 34.06 36.82 37.81 27.87
P/E Ratio, Industry
Information Technology 35.95 27.19 29.45 31.57 22.70

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 2023 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 5,428,000,000 ÷ 452,000,000 = 12.01

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 596.10 ÷ 12.01 = 49.64

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Adobe Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Operating Profit (P/OP)

Adobe Inc., historical P/OP 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$)
Operating income (in millions) 6,650 6,098 5,802 4,237 3,268 2,840
Operating profit per share2 14.71 13.32 12.30 8.85 6.78 5.82
Share price1, 3 596.10 344.38 499.91 458.08 350.00 244.95
Valuation Ratio
P/OP ratio4 40.52 25.85 40.64 51.75 51.63 42.06
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC 21.69 16.83 28.35 22.21 18.63
Autodesk Inc. 43.26 66.40 91.28 95.51
Cadence Design Systems Inc. 65.43 47.21 48.13 57.54 40.67
CrowdStrike Holdings Inc.
International Business Machines Corp. 17.99 14.35 16.23 15.90 11.94
Intuit Inc. 49.04 46.05 62.00 41.56 40.45
Microsoft Corp. 27.76 24.72 30.79 29.30 24.54
Oracle Corp. 25.30 16.51 14.31 12.17 13.83
Palantir Technologies Inc. 431.61
Palo Alto Networks Inc. 193.40
Salesforce Inc. 177.62 357.52 431.39 511.08 223.46
ServiceNow Inc. 206.26 260.26 436.46 583.07 1,590.30
Synopsys Inc. 67.90 43.85 75.64 59.90 40.48
P/OP Ratio, Sector
Software & Services 31.64 26.97 33.29 31.37 25.14
P/OP Ratio, Industry
Information Technology 30.25 22.94 26.20 27.01 19.87

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 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,650,000,000 ÷ 452,000,000 = 14.71

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 596.10 ÷ 14.71 = 40.52

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Adobe Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Price to Sales (P/S)

Adobe Inc., historical P/S 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$)
Revenue (in millions) 19,409 17,606 15,785 12,868 11,171 9,030
Sales per share2 42.94 38.46 33.46 26.88 23.17 18.51
Share price1, 3 596.10 344.38 499.91 458.08 350.00 244.95
Valuation Ratio
P/S ratio4 13.88 8.95 14.94 17.04 15.11 13.23
Benchmarks
P/S Ratio, Competitors5
Accenture PLC 2.98 2.56 4.28 3.26 2.72
Autodesk Inc. 8.55 9.35 15.15 10.00 13.21
Cadence Design Systems Inc. 20.02 14.23 12.55 13.85 8.56
CrowdStrike Holdings Inc. 12.81 30.15 48.70 22.79
International Business Machines Corp. 2.73 1.94 1.94 1.47 1.63
Intuit Inc. 10.72 9.30 16.09 11.78 11.05
Microsoft Corp. 11.60 10.40 12.81 10.85 8.38
Oracle Corp. 6.63 4.25 5.38 4.33 4.74
Palantir Technologies Inc. 23.27 9.34 15.58 39.86
Palo Alto Networks Inc. 10.87 9.62 10.72 6.66 7.06
Salesforce Inc. 5.84 7.40 9.24 8.88 9.00
ServiceNow Inc. 17.52 12.75 19.02 25.66 19.36
Synopsys Inc. 14.75 10.03 13.22 10.08 6.27
P/S Ratio, Sector
Software & Services 8.76 7.44 9.47 7.66 6.06
P/S Ratio, Industry
Information Technology 7.92 6.48 7.50 6.69 5.03

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 2023 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 19,409,000,000 ÷ 452,000,000 = 42.94

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 596.10 ÷ 42.94 = 13.88

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Adobe Inc. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Price to Book Value (P/BV)

Adobe Inc., historical P/BV 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$)
Stockholders’ equity (in millions) 16,518 14,051 14,797 13,264 10,530 9,362
Book value per share (BVPS)2 36.54 30.69 31.37 27.71 21.84 19.20
Share price1, 3 596.10 344.38 499.91 458.08 350.00 244.95
Valuation Ratio
P/BV ratio4 16.31 11.22 15.94 16.53 16.03 12.76
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC 7.44 7.13 11.06 8.51 8.15
Autodesk Inc. 37.37 48.29 59.48
Cadence Design Systems Inc. 24.05 18.46 13.68 14.90 9.51
CrowdStrike Holdings Inc. 19.61 42.67 48.91 14.78
International Business Machines Corp. 7.49 5.34 5.90 5.24 6.04
Intuit Inc. 8.92 7.20 15.71 17.71 20.00
Microsoft Corp. 11.92 12.38 15.16 13.11 10.30
Oracle Corp. 308.71 41.57 14.01 8.59
Palantir Technologies Inc. 14.90 6.94 10.48 28.60
Palo Alto Networks Inc. 42.84 252.00 71.88 20.61 12.91
Salesforce Inc. 3.13 3.37 4.73 4.48 7.66
ServiceNow Inc. 20.60 18.36 30.36 40.91 31.48
Synopsys Inc. 14.02 9.24 10.50 7.57 5.16
P/BV Ratio, Sector
Software & Services 11.48 10.74 13.64 11.70 10.11
P/BV Ratio, Industry
Information Technology 11.38 10.36 12.38 10.96 8.28

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 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 16,518,000,000 ÷ 452,000,000 = 36.54

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 596.10 ÷ 36.54 = 16.31

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Adobe Inc. P/BV ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.