Adobe Systems is a diversified software company worldwide. It operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. The Company offers products and services for professionals, marketers, application developers, enterprises and consumers for creating, managing, delivering, optimizing and engaging with content. The company was founded in 1982 and is based in San Jose, California.
ADBE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Adobe Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Adobe Inc ranked in the 37th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 17.67%. As for the metrics that stood out in our discounted cash flow analysis of Adobe Inc, consider:
The company has produced more trailing twelve month cash flow than 92.8% of its sector Technology.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than only 9.84% of the free cash flow producing stocks we're observing.
ADBE's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 57.29% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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