# Adobe Inc. (ADBE) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Technology / Software. Price $246.14, market value $95.8 billion.

## Valuation
- **P/E (trailing): 13.7×** (5-yr avg 41.6×, 3-yr avg 37.6×). Adobe Inc. trades at 13.7× trailing earnings, well below its own five-year average of 41.6×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 9.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.26**. A PEG of 0.26 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.7×**. Each dollar of revenue is priced at 3.7×.
- **Price / book: 8.2×**. The shares trade at 8.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 9.6×**. Enterprise value is 9.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 11.1%** (5-yr avg 4.0%). Free cash flow equals 11.1% of the market value, above its five-year average of 4.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 7.3%**. The inverse of the P/E: 7.3% of the price is earned each year.

## Profitability
- **Gross margin: 89.3%**. Adobe Inc. keeps 89.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 35.7%**. 35.7% of revenue is left after running the business, an exceptional level.
- **Net margin: 30.0%**. 30.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 61.3%**. A 61.3% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 59.1%**. Return on all capital, debt included, is 59.1%: comfortably above what that capital costs.
- **Return on assets: 24.7%**. Each dollar of assets produces 24.7% of profit.

## Growth
- **Revenue growth (1 yr): 10.5%** (3-yr 10.5%/yr, 5-yr 13.1%/yr). Revenue grew 10.5% over the last year, against 13.1% a year compounded over five years.
- **EPS growth (1 yr): 35.1%** (3-yr 18.2%/yr, 5-yr 9.0%/yr). Earnings per share rose 35.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 10.0%/yr**. Free cash flow has compounded at 10.0% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.53**. Debt is 0.53 times equity, moderate leverage.
- **Net debt / EBITDA: 0.1×**. It would take 0.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 1.00** (quick 1.00). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 5.55**. A Z-score of 5.55 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend: none**. Adobe Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: hold** (32 analysts). 32 analysts cover Adobe Inc.; the consensus is hold, with an average price target of $272.31 (+11% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -26.1%** (YTD -28.1%, 3-mo 0.1%). The shares are down 26.1% over twelve months including dividends.
- **From 52-week high: -32.1%** (29.5% above the low). Trading 32% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 0.29** (volatility 41%). Beta of 0.29 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ADBE · Page: https://foliofundamentals.com/stocks/adbe

Not investment advice.