Adobe Inc. (ADBE): Price and Financial Metrics

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ADBE Price/Volume Stats

Adobe Inc. (ADBE) Company Bio

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

Below please find a table outlining a discounted cash flow forecast for ADBE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Adobe Inc ranked in the 43th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 38.67%. As for the metrics that stood out in our discounted cash flow analysis of Adobe Inc, consider:

• The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately only 9.77% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• ADBE's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 50.03% of tickers in our DCF set.
• As a business, Adobe Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than only 0% of stocks generating free cash flow.

For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ADBE, try ALRM, PERI, RP, NOVT, and HPQ.