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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Adobe Inc. To summarize, we found that Adobe Inc ranked in the 35th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Adobe Inc ended up being:
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately only 8.39% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Adobe Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 23.93% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Technology).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ESE, TKAT, TRMB, G, and GLOB can be thought of as valuation peers to ADBE, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Team members at Adobe have built a new way to use artificial intelligence to automatically personalize a blog for different visitors. This tool was built as part of the Adobe Sneaks program, where employees can create demos to show off new ideas, which are they showcased (virtually, this year) at the Adobe Summit. And while […]
I started Project $1M, a high-growth, buy-and-hold portfolio, in late 2015 with the goal of turning a $275,000 fixed-capital base into $1M by 2025. This write-up is intended to provide an outlook and future view into how the rest of 2020 may impact the portfolio. Source: Project $1M, Q2 2020,...